Texas · Fix and flip loans

Texas Fix and Flip Loans: Leverage, Carry Costs and a Flip That Pencils

Texas fix and flip loans typically cover 85–100% of the purchase and 100% of the rehab, capped at 70–80% of the after-repair value. Texas helps the math with no transfer tax and the nation's fastest foreclosures, and hurts it with property tax: at Dallas's 2.23% combined rate, each month you hold a $195,000 house costs about $362 in tax alone.

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Purchase financed (published): 85–100%
Rehab financed: 100%
Max loan, % of ARV: 70–80%
Foreclosure auctions: First Tuesday, monthly

Texas figures from the sources below, updated October 26, 2026. Not an offer.

Texas costs

Carry costs decide a Texas flip: interest, tax and time.

Every month between closing and sale costs interest, tax and insurance. Texas has no transfer tax to pay on the way in or out, so the hold is where the money goes. Lender figures are ranges published in October 2026.

WORKED EXAMPLE · DALLAS FLIP, 6-MONTH HOLD

After-repair value (ARV): $360,000
Purchase price: $195,000
Rehab budget: $55,000
Loan: 90% of purchase + 100% of rehab: $175,500 + $55,000 = $230,500
Cap check: 75% of ARV: $270,000 — loan fits under it
Interest at 10.25%, 6 months: $10,404
Points (1.5%) and doc fee: $3,458 + $1,995
Property tax, 6 months at 2.226885%: $2,171
Insurance (assumed): $1,200
Buying closing costs (assumed): $3,000
Selling costs (assumed 6% of ARV): $21,600
Total costs beyond purchase and rehab: $43,828
Your cash in: down payment $19,500 + costs paid before sale: $41,728

Profit before income tax$66,172

$360,000 − $195,000 − $55,000 − $43,828 = $66,172. Interest: an assumed 10.25%, just under the 2025 non-bank median of 10.45%, on $175,500 for 6 months plus the $55,000 rehab draws averaging 3 months outstanding. The $195,000 price follows the 70% rule (70% of ARV minus rehab = $197,000), and the ARV sits near Dallas–Fort Worth's typical home value. Tax assumes the appraisal district values the house at the price paid. No transfer tax at either closing. Illustrative only — not a rate quote.

Interest: The median rate on short-term investor loans in 2025 HMDA data was 10%, and 10.45% at non-bank lenders. Advertised floors in October 2026 ran from about 7.75% to 9.24%. Interest is usually charged only on money drawn, so rehab funds cost nothing until released.
Points and fees: 0–2 points plus a document fee; Easy Street publishes $1,995. Lima One lets you defer points to the exit.
Property tax while you hold: $2.226885 per $100 of value a year inside Dallas city limits, about $362 a month on a $195,000 house. Texas has no state property tax; the rate is the sum of the local units (city, county, school district and special districts), so it varies by address.
Transfer tax: None at either closing. A 2015 amendment to the Texas Constitution (Art. VIII, §29) bars taxes on transactions that convey fee simple title, so buying and reselling within months triggers no state or county deed tax.
Title insurance: The Texas Department of Insurance sets title premiums, so every title agent charges the same premium for the same policy. The current basic rates took effect March 1, 2026, after a 6.2% cut. Look up the exact premium for your sale price in TDI's rate table.
Insurance during the rehab: A vacant house under renovation is a different risk from an occupied home, so get a vacant-property or builder's-risk quote before you close and ask your lender which coverage it requires. Texas topped State Farm's list of states for hail claims in 2025; a roof damaged mid-project can stall your sale.
The seller's tax bill isn't yours: A homestead owner's school taxes are figured after a $140,000 residence homestead exemption, plus another $60,000 at 65 or older or with a disability. Those exemptions are for a principal residence, which your flip isn't. Estimate carry at the full combined rate on the full appraised value, not from the seller's last bill, which can understate your tax by thousands.
When the tax comes due: Texas property tax is due when the bill is received and delinquent if unpaid before February 1 of the year after it's imposed. A flip still on your books in January can owe the whole year's bill before it sells, so check the tax certificate when you buy and keep the payment in your carry budget.
HOA resale certificate: In a subdivision with a property owners' association, the association must deliver a resale certificate within 10 business days of a written request and can charge no more than $375, or $75 for an update. Your seller orders one when you buy and you order one when you sell, so request it as soon as you're under contract.

Markets

Values are down in the big four metros and rising in El Paso and Lubbock.

Your ARV comes from comparable sales, but the metro trend tells you how much cushion to leave. A typical-value home approximates a finished flip; the lower-third value is closer to where many distressed purchases start.

Metro	Typical home value	12-mo change	Lower-third value	12-mo change
Dallas–Fort Worth	$358,000	−2.0%	$244,000	−1.6%
Houston	$303,000	−1.8%	$204,000	−1.5%
San Antonio	$274,000	−1.9%	$175,000	−2.0%
Austin	$414,000	−4.3%	$292,000	−4.6%
El Paso	$233,000	+2.5%	$178,000	+4.0%
Corpus Christi	$222,000	+0.7%	$123,000	+3.7%
Lubbock	$212,000	+2.5%	$125,000	+3.0%
Waco	$250,000	+0.4%	$141,000	+0.1%

Swipe the table to see every column →

Source: Zillow Home Value Index for single-family homes and condos, smoothed and seasonally adjusted — middle tier (“typical home value”) and bottom tier (lower third of homes by value) — metro areas, September 2026 vs September 2025, downloaded October 19, 2026.

Texas rules

Texas rules every flipper should know.

Foreclosure auctions run on a fixed calendar: Under a Texas deed of trust with a power of sale, a lender forecloses without going to court. Sales are public auctions between 10 a.m. and 4 p.m. on the first Tuesday of the month, in a designated area at the county courthouse, and the notice of sale must be posted and filed with the county clerk at least 21 days before. That gives you three weeks to research each property. Texas led the US in foreclosure starts (20,739) and bank repossessions (3,322) in the first half of 2026, with the shortest average timeline in the country: 155 days.
Tax-sale and HOA-lien buys can be redeemed: Texas gives a right of redemption only for certain foreclosures, such as tax liens and property owners' association assessment liens. After an HOA lien sale, the owner can redeem until the 180th day after the association mails notice of the sale; after a tax sale of non-homestead property, until the 180th day after the deed is recorded, paying the buyer a premium of up to 25%. Don't start a rehab you could lose.
Hold back 10% from your contractor: Texas Property Code §53.101 requires an owner to retain 10% of the contract price during the job and for 30 days after the work is completed, which protects you against subcontractor lien claims. Build that timing into your draw schedule and your closing date.
Check loan minimums on cheap houses: Published minimum loan amounts run from $50,000 to $100,000. In Lubbock or Corpus Christi, where lower-third homes are worth about $125,000, a 90% purchase loan on a discounted house can fall under some lenders' floors. Ask before you go under contract.
Your resale needs a seller's disclosure notice: Texas Property Code §5.008 requires the seller of a single-dwelling home to give the buyer a written disclosure notice on or before the contract's effective date. Owning the house for only a few months doesn't exempt you: the statutory form itself asks whether the seller occupies the property and, if not, how long since they did. Deliver it late and the buyer can terminate for any reason within 7 days of receiving it. Keep a file of every repair, permit and inspection so you can answer the form accurately.
Lien deadlines can outlast your sale: On a residential project, a contractor or supplier has until the 15th day of the third month after the month its work was completed to file a lien affidavit, under deadlines that took effect January 1, 2022 (Property Code §53.052). A sub your contractor didn't pay can file after you've listed the house. Collect a lien waiver with every payment, hold the 10% statutory retainage for the full 30 days after completion, and be ready to show the title company that everyone was paid.
Licensed trades for electrical, plumbing and HVAC: Texas requires a state license to perform electrical work, to do plumbing, and to contract air conditioning and refrigeration work (Occupations Code §1305.151, §1301.351 and §1302.251). City permits for those trades are pulled under those licenses, and lenders review your contractor as part of the scope, so check every sub's license before demolition starts rather than at the first failed inspection.
Business purpose only: Fix and flip loans are for property you will resell or rent out, not a home you or your family will live in. If you plan to move in, you need a residential mortgage instead.

Texas fix and flip loan questions

How much will lenders lend on a Texas flip?

Published terms in October 2026 covered 85–100% of the purchase price, depending on experience, plus 100% of the rehab. The total is capped at 70–80% of the after-repair value, and some lenders set 60–70% of ARV for new investors or heavy rehabs. Whichever limit is lower decides the loan.

What does a fix and flip loan cost in Texas?

The 2025 HMDA median on short-term investor loans was 10%, or 10.45% at non-bank lenders, with advertised floors from about 7.75% in October 2026. Expect 0–2 points plus a document fee. Interest-only payments apply to money drawn, not the full loan.

Does Texas charge a transfer tax when I sell?

No. Texas has no real estate transfer tax, and its constitution has blocked new ones since 2015, so neither your purchase nor your resale carries a deed tax. Your exit costs are agent commissions if you list, any title premium your contract assigns to you as seller, and ordinary closing fees.

How do Texas foreclosure auctions work?

Lenders sell foreclosed property at public auction on the first Tuesday of each month, between 10 a.m. and 4 p.m., in a designated area of the county courthouse. Notices must be posted and filed with the county clerk at least 21 days before the sale, so upcoming properties are public three weeks ahead. A regular mortgage foreclosure sale carries no right of redemption, but tax-sale and HOA-lien purchases can be redeemed within set periods.

How long can I keep a Texas flip loan?

Published terms run 6 to 24 months, interest-only. Roc and Civic publish 12 months; Kiavi offers 12, 18 or 24, and Lima One 13, 19 or 24. Every extra month costs interest and, in Texas, property tax, so set a term that covers permits, the rehab and two to three months to sell.

Can I get a Texas flip loan with no experience?

Often, yes. Roc, Civic and New Silver published no experience requirement in October 2026, though lenders that tier by experience often give first-time investors less leverage, such as a lower share of the purchase price or a lower ARV cap. Your track record moves you into better tiers as you complete projects.

How fast can a Texas flip loan close?

Published closing times run about one to three weeks: Kiavi advertises 7 days, LendingOne 7–10 business days and RCN 10 business days. Have your scope of work and rehab budget ready at application, since the loan is sized on the appraiser's after-repair value.

Do I give a seller's disclosure when I sell a Texas flip?

Yes. Texas requires the seller of a single-dwelling home to deliver a written disclosure notice on or before the contract's effective date, and there's no exemption for a seller who never lived there; the form asks how long since you occupied it. If you deliver it after the contract is signed, the buyer can terminate for any reason within 7 days.

How long can a Texas contractor file a lien after a rehab?

On a residential project, until the 15th day of the third month after the month the work was completed. A plumber who finished in March, for example, has until June 15. That can run past your sale date, so collect lien waivers with every payment and release the 10% retainage Texas requires only after its 30-day hold and a final waiver.

Will the seller's homestead exemption lower my Texas property tax?

No. Texas school districts give a $140,000 residence homestead exemption, plus $60,000 more for owners 65 or older or disabled, but only on a principal residence. An investment flip doesn't qualify, so the seller's bill understates what you'll owe. Budget tax at the full combined rate, about 2.23% inside Dallas, on the appraised value.

What if my Texas flip doesn't sell?

Many investors rent it and refinance into a debt service coverage ratio (DSCR) loan, which qualifies on the rent instead of your income. Most DSCR lenders cap cash-out at 75% of value and want about 90 days of ownership first. On a $360,000 Dallas house, Texas tax alone is about $668 a month, so check that the rent covers the payment, tax and insurance before you count on it.

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Sources and methodologyUpdated October 26, 2026

Figures are market ranges from published lender terms and public data on the dates shown. They describe the market and are not an offer. Your terms depend on the property, your credit and your experience.