Current Texas hard money guidelines, updated from one source.
The values below come from Lendmire’s centralized hard money standards source and update on their own when current program guidance moves. Final terms remain specific to the borrower, the property, the documented track record, and the selected lending partner.
Maximum loan-to-cost
Top tier for investors with five or more completed projects; 90% with two or more. First-time investors qualify at lower tiers.
Maximum bridge leverage
Purchase without rehab, measured against both the purchase price and the value. Property that needs time rather than work, refinanced once stabilized.
Maximum cash-out LTV
Cash-out and refinance ceiling against current value. Proceeds depend on the payoff, costs, the exit, and complete underwriting.
Minimum FICO
Additional conditions apply under 660. Underwriting is asset-based; the published floor does not by itself reach the top leverage tier.
Every fix-and-flip tier is separately capped at this share of the after-repair value.
Released in draws against completed, inspected work — not at closing.
Interest-only payments; no prepayment penalty.
Current standard-program snapshot · updated August 28, 2026. Loan amounts up to $5,000,000, larger by exception. Ground-up construction up to 90% of cost for builders with three or more completed projects, to 10 units. Figures are outer bounds, not offers; Lendmire is a mortgage broker, not a lender.
Business-purpose financing available in 40 markets, including Washington, D.C. Eligible Texas projects are reviewed on the property, the plan, the documented track record, and the exit; top leverage tiers are reserved for experienced investors.
What a Texas hard money loan is — and how the approval works.
A hard money loan is short-term, business-purpose financing secured by non-owner-occupied real estate. Rather than qualifying the file primarily on personal-income calculations, the lender begins with the property, the purchase price, the budget, the after-repair value, and the exit — and then weighs the investor’s documented experience.
The asset and the plan lead the analysis
The questions that matter are what the property is worth now, what it will be worth when the work is finished, and whether the budget and timeline can deliver it. The more convincing that story, the more leverage may be available.
Leverage is tiered by documented experience
Documented completed projects are what move an investor up the leverage tiers; a first project qualifies at a lower tier rather than being turned away. The snapshot above shows where every tier sits today.
Rehab funds in draws, not at closing
The rehab portion of the loan is released against completed, inspected work rather than at closing. Budget, scope, contractor, and draw schedule are part of the file from the beginning, not an afterthought.
The exit is underwritten alongside the loan
The loan is repaid by a sale or by a refinance into long-term financing, and lenders expect to see that path before closing. Planning the refinance early is where a broker who works both products earns the fee.
Total project cost generally means the purchase price plus the rehab or build budget. The experience tier caps loan-to-cost, and a separate cap applies to every tier as a share of the after-repair value. Current ceilings sit in the live program cards above, and the calculator below models your own Texas project. The lender sets the final numbers from the appraisal, the scope of work, and the complete file.
A statewide market with several distinct project types.
Across Texas, established metros, growing employment centers, university and workforce housing, and communities with older housing stock each create renovation demand of their own. Each project type carries different purchase, rehab, resale, and refinance considerations.
Statewide figures provide general market context, not project-level underwriting. A lender still evaluates the subject property’s purchase price, scope of work, after-repair value, exit, and program eligibility.
Data source: U.S. Census Bureau QuickFacts — Texas, including the 2025 population estimate and population change from the April 1, 2020 estimates base, 2020–2024 median value of owner-occupied housing units, and 2020–2024 median gross rent.
Distinct Texas markets, distinct project considerations.
Hard money lenders in Texas see very different projects across the state: metro rehabs, workforce-housing flips, small multifamily repositions, and new construction. Purchase prices, renovation scope, resale depth, and refinance demand all shape how each file is underwritten.
Houston
Houston is one of the state’s major metros, which gives a fix-and-flip the resale depth and refinance demand lenders like to see behind an exit — and a crowded field for distressed inventory. The purchase price and the after-repair value get the closest read here. Census estimates put the Houston population near 2.33M, with a median owner-occupied value around $277.8K, median gross rent near $1,361, and renters in about 58% of households.
San Antonio
With a notable seasonal-housing share, San Antonio projects tend to be underwritten with the vacation-rental exit in mind from the start. Association rules, insurance availability, and resale timing all enter the file next to the after-repair value. By Census estimate, San Antonio has roughly 1.48M residents, a median owner-occupied value of about $235.7K, median gross rent around $1,324, and renter households near 48%.
Dallas
In a metro the size of Dallas, the exit story is usually the easy part: buyers and refinance demand are there. The harder part is buying right, because comparable sales are everywhere and the after-repair value has to survive them. The Census puts Dallas at about 1.31M people; owner-occupied homes carry a median value near $320.7K, gross rent runs around $1,472, and roughly 58% of households rent.
Austin
Austin carries a meaningful share of seasonal and vacation housing, which changes the exit conversation on a hard money file. A refinance into short-term-rental financing, association rules, insurance, and resale timing all get reviewed before leverage is set. The Census puts Austin at about 980K people; owner-occupied homes carry a median value near $555.3K, gross rent runs around $1,729, and roughly 57% of households rent.
Fort Worth
Fort Worth is a principal city in its metro, with the employment base that supports both rehab resale and new construction. Files here are underwritten on the after-repair or completed value measured against recent comparable sales in the same submarket. By Census estimate, Fort Worth has roughly 963K residents, a median owner-occupied value of about $303.0K, median gross rent around $1,509, and renter households near 43%.
El Paso
El Paso offers entry price points that keep a first or second project within reach, with renter demand that gives a rehab two exits — a sale to an owner-occupant or a refinance into a rental loan. Lenders still want the after-repair value supported by nearby sales. Population is roughly 680K by Census estimate, median owner-occupied value about $184.5K, median gross rent close to $1,073, and about 39% of El Paso households are renters.
Eligible investment-property projects in other Texas communities can also be reviewed. Availability remains subject to the property, the program, and the current lending footprint.
Four ways Texas investors can use hard money.
Here are the core transaction paths available for eligible Texas investment properties. The right structure depends on the project, the after-repair value, the investor’s experience, credit, reserves, and current lender guidelines.
Fix-and-flip loans
One loan covers the purchase and the rehab budget, with the rehab funded in draws against completed work. The investor’s experience tier sets the leverage, capped against the after-repair value.
Bridge purchase loans
Take down a Texas property that needs time rather than work — vacancy, condition, or a seller who will not wait for a conventional file — and move it into long-term financing once it is stabilized.
Cash-out and refinance
Use the equity in a free-and-clear or low-leverage investment property to fund the next acquisition or rehab, within the cash-out ceiling shown in the current snapshot, with the exit underwritten alongside the loan.
Ground-up construction
Residential new builds up to the unit count shown in the snapshot, with leverage set by the builder’s completed projects and capped against the completed value, and the build budget funded in draws.
Model a Texas project before requesting a quote.
The calculator opens with editable Texas sample assumptions for purchase price, rehab budget, and after-repair value. Leverage tiers refresh from Lendmire’s centralized hard money standards source. Every field is editable, and the result is a leverage estimate, not a loan offer.
Texas hard money calculator
Enter the purchase price, the rehab or build budget, and the after-repair value you expect the appraisal to support. The result is the estimated maximum loan at the selected experience tier, before closing costs and reserves.
Leverage tiers shown are the current program ceilings from Lendmire’s centralized hard money standards source.
Illustrative Texas starting assumptions are derived from the statewide median owner-occupied housing value. All fields are editable.
Illustrative leverage estimate only; nothing here is a cost quote or a loan offer. Leverage ceilings are outer bounds tiered by documented experience; the actual loan amount, draw schedule, reserves, and eligibility depend on the appraisal, the scope of work, and complete underwriting by the selected lender.
What lenders still review after the leverage math.
Leverage gets the attention, but the loan-to-cost ceiling is only one part of the file. A complete Texas hard money review also takes in the investor’s track record and liquidity, the property’s current and after-repair value, the scope of work, and the exit.
Same investment property, different point in its life.
Short-term and asset-based. The lender underwrites the purchase, the budget, the after-repair value, and the exit, tiers leverage by documented experience, and funds the rehab in draws. Built for property that is not yet stabilized.
Long-term and cash-flow-based. When the property is renovated and rented, a DSCR loan qualifies on the rental income relative to the monthly payment, which is the typical take-out for a completed Texas hard money project.
Many Texas projects use both: hard money to buy and renovate, then a DSCR refinance on the stabilized rent roll. Because Lendmire arranges both, the exit is planned before the first draw is funded.
What to prepare for a Texas hard money review.
The exact list varies, but these four categories are a practical starting point for an investor before requesting a project-specific quote.
This is a general preparation guide, not a universal document checklist. The selected lender may request additional information based on the property, borrower, entity, project, and underwriting findings.
Local details that can change the leverage decision.
Costs, property characteristics, and project logistics particular to Texas can materially change a hard money result or a property’s eligibility. Go through the practical issues below before relying on a target leverage or a projected after-repair value.
Use these checks to keep the Texas file clean and fundable.
Because treatment varies by lending partner, the goal here is not to promise a universal outcome but to spotlight the main issues an investor should resolve before closing.
After-repair value support
Every leverage tier is capped against the after-repair value the lender accepts, which comes from an appraisal or valuation and recent comparable sales, not from the investor’s projection. Optimistic Texas value assumptions are the most common reason a file lands at a lower loan amount than expected.
Scope, budget, and draw inspections
A line-item scope of work with a contingency, a contractor, and a realistic timeline sets the draw schedule. Draws are released against completed, inspected work, so a thin budget or a missing permit stalls the project rather than the paperwork.
Coastal insurance, flood, and wind
On coastal Texas property, wind and flood exposure sit on top of the builder’s-risk or vacant-property coverage the lender requires. Premiums, deductibles, and availability move the carrying-cost budget and can change the rental refinance that repays the note — resolve them before closing.
Entity vesting and title
Vesting in an LLC or other entity is common on business-purpose loans, with personal guarantees from the members. Have formation documents, ownership information, and clean title ready before closing so the entity never becomes the reason a closing slips.
The exit and the timeline
Because hard money is short-term, the sale or refinance that repays it has to land inside the term. When a Texas property will be held as a rental, mapping the DSCR refinance up front — seasoning, rent support, and leverage — keeps the exit from turning into a scramble at maturity.
From a Texas project to closing.
Begin with the property and the plan, compare the available structures, document the project, and move through underwriting toward closing and the exit.
Run the project
Send the Texas property details, purchase price, budget, after-repair value, experience, credit range, and timing.
Compare partners
Lendmire compares multiple hard money and private money options on leverage, draw process, experience fit, and property appetite.
Document the project
Assemble the appraisal or valuation, scope of work, contractor, insurance, title, entity, and asset documentation the lender requires.
Close and exit
Settle the structure, fund the purchase, draw against completed work, and complete the sale or the refinance on schedule.
A brokerage built around investor projects.
Projects across Texas span a first cosmetic flip, ground-up construction, and multi-property portfolios. Those files do not all belong with the same lender.
Partner comparison
Lendmire can compare multiple hard money and private money partners instead of forcing every Texas project into one institution’s box.
Investor specialization
Leverage, experience tiers, draw mechanics, entity vesting, reserves, property type, and the exit strategy are the focus of the review.
The exit, planned early
Because Lendmire also arranges DSCR financing, the refinance that repays the hard money note can be planned before the first draw is funded.
Trusted by buyers & investors alike.
Texas hard money loan FAQs
Purchase, rehab, construction, entity, leverage, and exit questions come up constantly from Texas investors; the answers below address them. Final program terms remain project-specific.
Can I use a hard money loan to buy a Texas fix-and-flip property?
Yes. Eligible Texas investment properties can be bought and renovated on a hard money loan through select lending partners: one loan for the purchase and the rehab budget, rehab funded in draws against completed work, and leverage tiered by documented experience and capped against the after-repair value in the current snapshot.
How do I compare hard money lenders in Texas?
Focus on what changes your result: the leverage tier your track record qualifies for, how rehab draws are inspected and released, how the after-repair value is set, which property types and Texas markets are accepted, and how the exit is treated. Lendmire weighs multiple hard money and private money partners on those factors before placing a file.
What is the exit on a Texas hard money loan?
Either a sale after the renovation or a refinance into long-term financing — for a rented property, usually a DSCR loan that qualifies on the rental income. Lenders want that path visible before closing, and because Lendmire arranges DSCR financing as well, the Texas refinance can be planned alongside the hard money loan.
Do I need experience to get a hard money loan in Texas?
No — first-time investors are eligible. Leverage is tiered by documented completed projects, so a first project qualifies at a lower tier than an investor with a longer record. The current snapshot shows where each tier sits today, and the calculator lets you model a Texas project at your own tier.
Does coastal insurance affect a Texas hard money project?
It can — wind, flood, and builder’s-risk coverage on a coastal Texas property raise carrying costs and can change the exit, particularly when the take-out is a rental refinance. Lenders want that insurance picture settled before closing, not uncovered mid-project.
Can hard money fund ground-up construction in Texas?
Yes. Eligible ground-up residential builds in Texas are financed up to the unit count in the snapshot, with leverage set by the builder’s completed projects and capped against the completed value. Plans, budget, builder information, and the exit are reviewed with the land value.
How long is a hard money loan?
Hard money is short-term: the current snapshot shows the term range, payments are interest-only during the term, and the current program carries no prepayment penalty. It is designed to be repaid by the exit — a sale or a refinance — not carried for years.
How is hard money different from a DSCR loan?
Hard money is short-term and asset-based: it funds the purchase and the renovation on the after-repair value and the plan, with leverage tiered by experience. A DSCR loan is long-term and cash-flow-based: it qualifies a rented property on its rental income. Many projects use both — hard money to renovate, DSCR to hold.
Can I close a Texas hard money loan in an LLC?
Yes. Business-purpose hard money loans are routinely vested in an LLC, corporation, or partnership, and individual investors are eligible too. Expect formation documents, ownership information, and personal guarantees in the file, with the closing team confirming Texas title and entity requirements.
What should I submit for a Texas hard money quote?
Start with the property address or market, the project type, the purchase price or payoff, the rehab or build budget, the expected after-repair value, your completed projects, the entity that will hold title, your credit range, and the timeline. A loan officer can then identify the additional documents the selected lender needs for a Texas file.
Bring the Texas project. We will help structure the financing.
Start with a fix-and-flip, bridge purchase, cash-out, or ground-up construction scenario. No credit pull or commitment is required to request an initial review.
This guide is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live there.
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