Guides # Hard Money Loan Requirements in Texas See what Cedar Top reviews for your Texas hard money loan, including the property, your equity position, your borrower profile, documents, and your exit strategy. [Apply Now](https://cedartoplending.com/apply/) [Get a Quote](https://cedartoplending.com/contact/) By Cedar Top Lending · Published June 22, 2026 · Last updated July 31, 2026 ## Quick Answer Texas hard money loan requirements focus on the investment property, your project plan, your borrower profile, your equity position, your documentation, and your exit strategy. Cedar Top reviews non-owner-occupied Texas investment property deals, and every loan goes through collateral review, title review, documentation, and approval. A Texas hard money loan is asset-focused, so the requirements look different from a bank loan. We review your property, your project plan, your borrower profile, your equity position, your documentation, and your exit strategy. We also look at your credit and income, but they are not the deciding factors. For how hard money works overall, start with [what hard money lending is](https://cedartoplending.com/blog/what-is-hard-money-lending-texas/), and for the programs themselves, see our [hard money loan programs](https://cedartoplending.com/hard-money-loans/). ## Core Requirements for a Texas Hard Money Loan Here is what we review for your loan: Requirement What we look at Why it matters Texas investment property That the property is investment real estate located in Texas We lend on Texas investment property Business purpose That the loan is for a business or investment purpose Hard money here is not consumer mortgage lending Non-owner-occupied use That the property is not a primary residence or homestead We lend on non-owner-occupied property only Property value and condition The collateral, its condition, and supporting value information The property carries the loan Project plan The scope of work, budget, and plans where relevant The plan drives renovation and construction reviews Borrower profile Credit, experience, liquidity, entity, and background, as applicable The borrower is reviewed alongside the property Equity or cash to close The equity in the transaction and your cash position Hard money is leverage-based Title status Title condition and a lender's title policy Title issues can slow or stop a transaction Insurance Appropriate insurance for the property and project Collateral is protected during the loan Exit strategy How the loan is expected to be repaid A clear exit makes a deal easier to review Documentation The supporting documents for the property and deal Complete information keeps the review moving ## How Requirements Differ by Loan Type Loan type Common use What we look at [Fix-and-flip project](https://cedartoplending.com/hard-money-loans/fix-and-flip/) Buy, renovate, and resell a non-owner-occupied property Purchase price, scope of work, budget, value support, and resale exit [New construction project](https://cedartoplending.com/hard-money-loans/new-construction/) Ground-up or spec build on investment property Plans, budget, the project plan, and the completion-and-sale or refinance exit [Bridge loan](https://cedartoplending.com/hard-money-loans/bridge-loans/) Short-term financing to acquire or hold now and refinance or sell later The property, the timeline, and the refinance or sale exit [Raw land acquisition](https://cedartoplending.com/hard-money-loans/land-and-ranch/) Lots, acreage, and rural property many lenders avoid Collateral value, access, title and survey items, and the plan for the property [Commercial investment property](https://cedartoplending.com/hard-money-loans/commercial/) Retail, office, and value-add commercial property The property, income or value-add plan, and the exit strategy [Transactional funding](https://cedartoplending.com/hard-money-loans/transactional-funding/) Same-day double close for wholesalers A confirmed end buyer at title and the transaction structure; see the [transactional funding checklist](https://cedartoplending.com/resources/transactional-funding-checklist/) ## Property Requirements The property comes first, because hard money is secured by it. Depending on your deal, we look at: - The property's location in Texas - Non-owner-occupied status - The collateral's condition - The purchase price - An estimated current value - A projected value if the property is improved - Photos - Access to the property - Title status - Insurance availability - Rural or [raw land](https://cedartoplending.com/hard-money-loans/land-and-ranch/) considerations, such as access, survey, and use, where relevant ## Business Purpose and Eligible Use We make business-purpose and investment-purpose loans on non-owner-occupied investment property. Owner-occupied homes, primary residences, and homesteads are not the right fit. In Texas that distinction matters, because owner-occupied and homestead lending is regulated very differently. For legal, tax, title, and entity questions, talk to the appropriate professional. ## How We Review Your Borrower Profile Hard money is asset-focused, but you still matter. Depending on your deal, we look at your credit, your experience, your liquidity, your entity information, your background, your project plan, and your exit strategy. A strong property does not automatically overcome every borrower or documentation issue. We review your property, your project plan, your borrower profile, and your exit strategy before determining whether your deal fits. ## How Much Down Payment Do You Need? There is no fixed down payment percentage. Your cash to close is set by the leverage cap for your program: up to 75% of ARV on a [fix-and-flip loan](https://cedartoplending.com/hard-money-loans/fix-and-flip/), up to 90% loan to cost on [new construction](https://cedartoplending.com/hard-money-loans/new-construction/), up to 75% loan to value on a [bridge loan](https://cedartoplending.com/hard-money-loans/bridge-loans/), and up to 65% of market value on [raw land](https://cedartoplending.com/hard-money-loans/land-and-ranch/). You bring the gap between the loan and the total cost of your deal, plus the origination fee of 2% to 4%, the $995 document fee, closing costs, title, insurance, and reserves. Program Maximum leverage Loan amounts [Fix and flip](https://cedartoplending.com/hard-money-loans/fix-and-flip/) Up to 75% of ARV $50,000 to $1,000,000 [New construction](https://cedartoplending.com/hard-money-loans/new-construction/) Up to 90% loan to cost, within 70% loan to value $50,000 to $1,000,000 [Bridge](https://cedartoplending.com/hard-money-loans/bridge-loans/) Up to 75% loan to value $50,000 to $1,000,000 [Land and Ranch](https://cedartoplending.com/hard-money-loans/land-and-ranch/) Up to 65% of market value $50,000 to $10,000,000 [Commercial](https://cedartoplending.com/hard-money-loans/commercial/) Up to 75% loan to value $50,000 to $1,000,000 [Transactional funding](https://cedartoplending.com/hard-money-loans/transactional-funding/) 100% of the purchase price and closing costs Requires a confirmed end buyer at title A solid deal below the cap is easier to review than a thin deal at the cap. Your exact leverage is set in the term sheet, and every loan goes through collateral review, title review, documentation, and approval. Current figures are on the [rates and terms](https://cedartoplending.com/hard-money-loans/rates-and-terms/) page, and you can run your numbers in the [hard money loan calculator](https://cedartoplending.com/resources/hard-money-loan-calculator/). ## Exit Strategy Every loan needs a way out. Common exit strategies include: - Sale after renovation - Refinance after stabilization - Sale of another property - Construction completion and resale - Commercial refinance - Land resale or a development plan An unclear exit makes your deal harder to review, so have a realistic plan for how the loan gets paid back before you apply. ## Documents We May Ask For Send us the property address and photos, the purchase contract, entity documents and ID, a scope of work and budget on renovation or construction deals, a title company contact, an insurance contact, and your exit plan. Not every deal requires every item. Fuller list: our [documents checklist](https://cedartoplending.com/blog/hard-money-loan-documents-checklist-texas/). ## What Can Slow Down a Hard Money Loan Review These do not always stop your deal, but they can slow the review or require more documentation: - Unclear ownership or title issues - A missing purchase contract - An unclear scope of work - An unrealistic renovation budget - Unsupported value assumptions - No clear exit strategy - A property outside Texas - Owner-occupied use - Insurance problems - Missing entity documents - Incomplete borrower information ## What Does a Hard Money Loan Cost? Our loans start at 12% interest with an origination fee of 2% to 4% and a $995 document fee. Payments are interest only, there is no prepayment penalty, and a lender's title policy is required. On renovation and construction loans, draw fees start at $250. Transactional funding is priced differently: a 1.5% fee with a $1,500 minimum, paid only if your deal closes. Title costs, insurance, and closing costs vary by deal and show up in your term sheet. Current figures for every program are on the [rates and terms](https://cedartoplending.com/hard-money-loans/rates-and-terms/) page, and terms like ARV and LTV are defined in the [private money loan glossary](https://cedartoplending.com/resources/private-money-loan-glossary/). ## Common Mistakes Before Applying - Assuming credit never matters - Submitting a deal without a purchase contract - Using unrealistic ARV assumptions - Underestimating renovation or construction costs - Skipping title review - Not having insurance lined up - Having no clear exit strategy - Trying to use business-purpose hard money for a primary residence - Sending incomplete information ## Related Resources Apply for a Texas hard money loan We lend on business-purpose, non-owner-occupied Texas investment property. Every loan goes through collateral review, title review, documentation, and approval. [Apply Now](https://cedartoplending.com/apply/)[Get a Quote](https://cedartoplending.com/contact/) ## Frequently Asked Questions ### What are the basic requirements for a hard money loan in Texas? Hard money is asset-focused, so we look at your investment property, your project plan, your borrower profile, your equity position, your documentation, and your exit strategy. Your loan needs to be for a business or investment purpose on non-owner-occupied Texas property. ### Does Cedar Top require a minimum credit score? No. There is no minimum credit score. Hard money is asset-focused, but we do look at your credit, experience, liquidity, and entity information as part of the picture. Credit is one factor, not the only one. ### Can I use a hard money loan for my primary residence? No. We make business and investment-purpose loans on non-owner-occupied investment property only, not loans for a primary residence, an owner-occupied home, or a homestead. ### What documents should I prepare before applying? Depending on your property and project, we may ask for the property address, purchase contract, photos, a scope of work and budget, entity documents, identification, an insurance contact, and a title company contact. Not every deal requires every document. ### How much cash do I need to close? There is no fixed down payment percentage. Leverage caps run up to 75% of ARV on a fix and flip, up to 90% of cost on new construction, up to 75% of value on a bridge, and up to 65% of value on raw land. Your cash covers the gap between the loan and the total cost of your deal, plus the 2% to 4% origination fee, the $995 document fee, closing costs, title, insurance, and reserves. ### What property types does Cedar Top review? We lend on non-owner-occupied Texas investment property, including single-family, multi-family, commercial, raw land, and similar investment real estate, depending on the program. ### Are hard money loans hard to get? Not if your deal is sound. Our borrower qualifications are much less stringent than most banks because we underwrite the loan on the property, not your W-2. There is no minimum credit score. Deals still get declined, most often for an unsupported ARV, an unclear scope of work, or no realistic exit. ### How much down payment do I need for a hard money loan? Enough to cover the gap between the leverage cap for your program and the total cost of your deal, plus the 2% to 4% origination fee, the $995 document fee, closing costs, insurance, and reserves. There is no fixed down payment percentage; caps range from 65% of market value on raw land to 90% of cost on new construction, and the table on this page lists each program. ### What are the disadvantages of a hard money loan? Cost and term. Rates start at 12% with an origination fee of 2% to 4%, which is usually more than bank financing, and terms are short, so your exit has to happen on schedule. In exchange you get asset-focused review, interest-only payments, and no prepayment penalty. The hard money vs bank loan page covers the trade-off. ### Do I need a scope of work for a renovation project? For renovation and construction projects, bring us a written scope of work and budget. Your project plan is a major part of the review. ### How does Cedar Top review a new construction project? We review your plans, your budget, the lot, your project plan, and your exit strategy. Construction funds are released in draws as work is completed and inspected. ### What can slow down a hard money loan review? A review can take longer, or require more documentation, when there are title questions, a missing purchase contract, an unclear scope of work, unsupported value assumptions, no clear exit strategy, insurance gaps, or incomplete borrower or entity information. These do not always stop a deal, but they slow it down. ### Why does exit strategy matter? Your exit strategy is how the loan gets paid back, usually a sale or a refinance. An unclear exit makes your deal harder to review, so have a realistic plan before applying. ### How do I compare Cedar Top loan programs? Review the individual program pages and the compare loan programs page to see how fix-and-flip, new construction, bridge, raw land, commercial, and transactional funding differ, then apply online. ## Related Reading - [How Hard Money Loan Draws Work](https://cedartoplending.com/blog/how-hard-money-loan-draws-work/) Guides How rehab and construction draws work on your Texas hard money loan - funds set aside at funding, then released as work is completed and inspected. - [Raw Land Loan Requirements in Texas](https://cedartoplending.com/blog/raw-land-loan-requirements-texas/) Hard Money Here is what we review for a Texas raw land loan, including collateral value, access, title and survey items, documents, and a clear plan or exit. - [What Is Hard Money Lending in Texas?](https://cedartoplending.com/blog/what-is-hard-money-lending-texas/) Hard Money What a hard money lender is, how hard money loans work, what they cost, and when Texas investors use them, from a Fort Worth lender that underwrites your loan in house. This article is general education for real estate investors, not financial, legal, or tax advice. Non-owner-occupied investment property only. Terms, rates, and availability are subject to underwriting, collateral review, title review, documentation, and approval. This is not a commitment to lend. See our [disclosures](https://cedartoplending.com/licensing-disclosures/). --- Canonical URL: https://cedartoplending.com/blog/hard-money-loan-requirements-texas/