Texas hard money loans
Fix and Flip Loans
Fix and flip financing for Texas investors, underwritten on the property and your investment plan rather than your W-2. Loans up to 75% of ARV, with rehab funds held in escrow and released in draws as your property improvements pass inspection.
Rate
Starting at 12%
Loan amount
$50,000 - $1,000,000
Term
6 month initial term with extension provision
Last updated
What is a fix and flip loan?
A fix and flip loan is short-term, asset-based financing that funds both the purchase and the renovation of an investment property you plan to resell. The loan is based on the property and its after-repair value (ARV) rather than your income, and the rehab budget is held in escrow and released in draws as your improvements are completed.
How We Structure a Fix and Flip Loan
We size your loan on the after-repair value of the property, not on your income. Up to 75% of ARV covers the purchase price and the rehab budget together. The rehab portion is held in escrow from day one, and each draw is released after your improvements pass inspection. We typically have the inspection report within 48 hours and disburse the following day, so a crew that keeps moving gets paid on schedule. Our draw process page walks through exactly how the escrow works.
Many investors screen projects with the 70 percent rule: pay no more than 70% of ARV minus repair costs. It is a screening shortcut rather than underwriting, but it lands close to how our 75% ARV maximum works on a typical flip once points and carrying costs are included. If a project only works above those numbers, the margin is usually not there. Run your numbers through our fix and flip profit calculator before you write the offer.
Credit is rarely the reason a fix and flip loan does not get funded. The usual reasons are an ARV the comparable sales do not support, a rehab budget with no line items, and an exit strategy that needs everything to go right. A detailed scope of work and realistic comps do more for your approval than a higher credit score, because the property is what secures the loan. The full picture of what we review is in hard money loan requirements in Texas.
Every fix and flip loan is underwritten to an exit strategy: sell the finished property, or refinance with a long-term lender if you decide to keep it as a rental. If the property is finished but the sale needs more time, one of our bridge loans can take out the fix and flip loan while you sell. For a side-by-side look at the cost of a bank loan on the same project, see our hard money vs. bank loan comparison.
Terms snapshot
- Rate
- Starting at 12%
- Points / origination
- Origination fee of 2% to 4%
- Doc fee
- $995 Document Fee
- Loan amount
- $50,000 - $1,000,000
- Term
- 6 month initial term with extension provision
- Max leverage
- Up to 75% of ARV
- Payments & fees
- Interest only payments · NO prepayment penalty · Lenders title policy required
- Property types
- Single-family, Multi-family, Commercial, Condo, Townhome
- Owner-occupied
- Not eligible - investment / non-owner-occupied only
Example Fix and Flip Loan
| Purchase price | $180,000 |
|---|---|
| Rehab budget | $60,000 |
| ARV (after-repair value) | $320,000 |
| Estimated loan amount | Up to $240,000 (75% of ARV) |
| Borrower cash to close | Down payment, points, fees, and reserves |
| Monthly payment | Interest-only on the outstanding balance |
| Exit strategy | Sell the renovated property, or refinance into a long-term rental loan and keep it in your portfolio. |
Illustrative only. Not a quote or a commitment to lend.
How funding works
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Apply online
Fill out our contact form with your loan request details: the property, purchase price, rehab budget, ARV, and your timeline.
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Review
We review each transaction personally and in-house, which allows us to make a lending decision quickly.
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Term sheet
If your project fits our fix and flip program, you will receive a term sheet stating rate, points, loan amount, and draw structure.
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Title
We coordinate title review and closing documents directly with your title company.
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Close
Once title work is clear and all documents are signed, we fund the purchase portion of your loan.
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Draws
Rehab funds are held in escrow and released in draws as your property improvements pass inspection.
Documents Required
The usual list. Some loan programs require one or two more items which will be requested as needed.
- Executed purchase contract
- Entity formation documents
- Government-issued ID
- Scope of work
- Itemized rehab budget
- Property photos
- Proof of insurance (builder's risk / hazard)
- Title company contact
- Exit strategy
What we can't fund
- Owner-occupied / primary residence request
- Unresolved title issues
- Unsupported or unrealistic ARV
- Weak or undefined exit strategy
- Insufficient documentation
- Unsupported property type
Frequently asked questions
Do I need bank-level qualifications for a fix and flip loan?
No. Getting a loan to flip a house in Texas does not need to be difficult. We base our fix and flip loans on the property value and your investment plan rather than bank-style income and credit checks, so we regularly fund borrowers with imperfect credit or limited experience.
What is ARV?
ARV, or after-repair value, is what the property will be worth once your renovations are complete. We size the loan on that number, up to 75% of ARV, rather than on the purchase price.
Can I qualify if I have bad credit?
Usually, yes. We lend on the property and your investment plan first and foremost. There is no minimum credit score, though we do look at credit, past investment experience, and a borrower's cash on hand as part of the picture.
What are the requirements for a fix and flip loan?
A Texas or Texas-registered entity in good standing, a non-owner-occupied investment property in Texas, and a project the numbers support. We ask for the executed purchase contract, a scope of work, an itemized rehab budget, property photos, proof of insurance, your title company contact, and your exit strategy. There is no minimum credit score, though credit may be reviewed.
How long do fix and flip loans last?
Our fix and flip loans have a 6 month initial term with an extension provision if the rehab or the resale runs long. Payments are interest-only and there is no prepayment penalty, so if your property sells in month three, you simply pay the loan off in month three.
How fast can a fix and flip loan close?
We can close your fix and flip loan in as little as 24 hours once title work is complete. We underwrite in-house with no outside underwriter and no third-party appraisal to wait on, so the timeline is set by the title company and by how far along you are in your planning.
Are fix and flip loans worth it?
Yes, when speed and loan sizing matter more than the interest rate. Hard money is priced higher than a bank loan, but in exchange the loan is sized on the after-repair value, up to 75% of ARV covering purchase and rehab together, and payments are interest-only with no prepayment penalty. On a flip, the cost that matters is your carrying cost over the months you hold the property, not the annual rate. Our program details and terms are on our rates and terms page.
What is the best loan for a fix and flip?
The loan that matches your project: short-term, sized on the after-repair value, with rehab funds released as work is completed and no penalty for paying it off when you sell. That is exactly what a hard money fix and flip loan is designed to do. A bank loan is cheaper on the rate but is sized on the purchase price and moves on a bank timeline. Our hard money vs. bank loan comparison lays out the pros and cons of each.
Texas markets we serve
North Central & West Texas
Northeast & East Texas
Apply for Texas Fix and Flip Loans
We underwrite every loan in-house. Fill out our short application or call us - we look forward to working with you on your next Texas investment property.