Texas hard money loans
Fix and Flip Loans
Rehab loans underwritten on the property, not your W-2. Up to 75% of ARV, with rehab funds released in draws as work passes 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. Approval is based on the property and its after-repair value (ARV) rather than your income, and the rehab budget is released in draws as the work is completed.
How we size a fix and flip loan
We size the loan from the after-repair value, not from your income. Up to 75% of ARV covers the purchase and the rehab budget together, the rehab portion sits in escrow from day one, and each draw releases after the work passes inspection. We typically have the inspection report within 48 hours and disburse the following day, so a crew that keeps moving gets paid on pace. The draw process page walks through exactly how that escrow works.
Investors often screen deals with the 70 percent rule: pay no more than 70% of ARV minus repair costs. It is a screening shortcut, not underwriting, but it lands close to how our 75% ARV cap behaves on a typical flip once points and carrying costs are in the picture. If a deal only works above those numbers, the margin is usually not there. Run your numbers in the fix and flip profit calculator before you write the offer.
What kills flip loans in our underwriting is rarely credit. It is an ARV the comparable sales do not support, a rehab budget with no line items, or an exit that depends on everything going right. A tight scope of work and honest comps do more for your approval odds than a higher credit score, because the property is the loan. The full review picture is in hard money loan requirements in Texas.
Every flip loan here is underwritten to an exit: sell the finished property, or refinance it with a long-term lender if you decide to keep it as a rental. We do not make long-term rental loans, so we have no reason to steer you toward holding. If the property is finished but the sale needs more runway, a bridge loan can take out the flip loan while you sell. And for the bank comparison on the project itself, see hard money vs a bank loan, side by side.
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
What a flip can look like
| Purchase price | $180,000 |
|---|---|
| Rehab budget | $60,000 |
| ARV (after-repair value) | $320,000 |
| Estimated loan amount | Up to ~$240,000 (max 75% ARV) |
| Borrower cash to close | Down payment + points + fees + reserves |
| Monthly interest estimate | Interest-only on the outstanding balance |
| Exit strategy | Resell the renovated property, or refinance into a longer-term rental loan. |
Illustrative only. Not a quote or a commitment to lend.
How a deal usually moves
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Share the deal
Send the property, purchase price, rehab budget, ARV, and timeline.
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Underwriting review
We review the property, borrower profile, collateral, and Texas market fit.
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Term sheet
If it fits, you receive a term sheet outlining rate, points, leverage, and draw structure.
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Title
We coordinate with your title company on title review and closing documents.
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Close
Closing and initial funding for the purchase portion of the loan.
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Draws
Rehab funds release in draws as work is completed and inspected.
Documents we may ask for
Every deal is different. Depending on the property and how it's structured, we may ask for more than this, sometimes a lot more.
- 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
Common reasons a deal may not fit
- Owner-occupied / primary residence request
- Property located outside Texas
- 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. Our borrower qualifications are much less stringent than most banks because we primarily base our rehab loans on property value for fix and flip funding. We regularly approve borrowers with imperfect credit and limited experience.
What is ARV?
ARV, or after repaired value, represents the current value plus the value added by any repairs, renovations, or addons.
Can I qualify if I have bad credit?
Yes, in many cases. Hard money loans are focused on asset-based underwriting, so your credit score matters less than the property and the plan. There is no minimum credit score, though credit may still be reviewed, subject to underwriting.
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 deal the numbers support. We ask for the executed purchase contract, a scope of work, an itemized rehab budget, property photos, proof of insurance, a title company contact, and your exit strategy. There is no minimum credit score, though credit may be reviewed. The property and the plan carry the file.
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 the property sells in month three you pay the loan off in month three.
How fast can a fix and flip loan close?
As little as 24 hours pending title work, subject to underwriting, documentation, and approval. We underwrite in-house, with no outside underwriter and no third-party appraisal to wait on, so timing mostly comes down to title and how complete your file is.
Are fix and flip loans worth it?
They are worth it when speed and sizing matter more than rate. Rates start at 12% with a 2% to 4% origination fee and a $995 doc fee, which is more than a bank charges. 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 the cost over the months you hold the property, not the annual rate. If the deal cannot absorb that carry, the margin was not there.
What is the best loan for a fix and flip?
The loan that matches the project: short-term, sized on the after-repair value, with rehab funds released as work completes and no penalty for paying it off at resale. That is what a hard money fix and flip loan is built 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 page lays the trade out line by line.
Texas markets we serve
North Central & West Texas
Northeast & East Texas
Fund your next fix & flip deal
Send us the property and the numbers. We underwrite in-house, so we can get back to you fast.