Texas bridge loans exist for the gap between knowing your exit and waiting for the slow lender. You won a distressed file in DFW (Dallas–Fort Worth) but exchange proceeds are ten days out. You stabilized a Houston rental and the DSCR lender needs six more weeks for lease seasoning. You are selling one asset while acquiring another — and neither timeline aligns.
Texas first-Tuesday sales and 1031 tails close on interest-only paper. Jaken Finance Group prices 8.99%–13.5% for 6–18 months, typically up to 75% of as-is or ARV when the exit is written. Product split: bridge vs hard money guide. Holds: DSCR loans Texas at 5.75%–10.5%. Qualified non-owner-occupied files only.
Commercial loan request · commercial real estate financing · (833) 264-7776.
Texas bridge market snapshot
| Segment | Geography | Typical asset | Bridge thesis |
|---|---|---|---|
| Metro value-add | DFW (Dallas–Fort Worth) | $245K–$385K | Collin/Denton reassessment after close |
| Secondary corridor | Houston | $195K–$320K | Harris County flood-zone diligence on AE blocks |
| Tertiary / yield | San Antonio | $185K–$275K | strong yield-on-cost; Bexar tax ~2%+ |
| Specialty lane | San Antonio | $185K–$275K | strong yield-on-cost; Bexar tax ~2%+ |
| Metric | DFW (Dallas–Fort Worth) | Houston |
|---|---|---|
| Basis band | $245K–$385K | $195K–$320K |
| Gross rent band | $1,850–$2,650 | $1,650–$2,350 |
| Effective property tax | ~1.68% (among the highest effective rates (1.8%–2.4% in many counties); model at post-close assessed value) | |
| Foreclosure | non-judicial — power-of-sale foreclosure on the first Tuesday of the month is among the fastest in the U.S. | |
| Rent / landlord | preempted — state law preempts local rent control |
among the highest effective rates (1.8%–2.4% in many counties); model at post-close assessed value — model taxes at purchase price before you size bridge carry. power-of-sale foreclosure on the first Tuesday of the month is among the fastest in the U.S. — non-judicial timelines affect auction and REO strategy. Primary hazard: Harris County (Houston) flood zones and mandatory flood insurance.
Bridge vs. hard money in Texas
Auction speed is bridge. Heavy rehab is hard money — bridge loans vs hard money. Over $40K or ARV leverage: hard money lenders Texas or fix and flip loans Texas.
Hard money emphasizes draw schedules, ARV caps, and construction holdbacks. Bridge emphasizes exit clarity — a named DSCR desk, a 1031 qualified intermediary wire date, or a purchase contract on the asset you are selling. In DFW (Dallas–Fort Worth), sponsors who confuse the two products often request bridge terms on a gut rehab without a stabilized rent roll — that file belongs in hard money first.
Five Texas bridge use cases
1031 exchange tail risk. Replacement property identified in Houston; exchange proceeds not yet wired. Bridge secures the asset while qualified intermediary funds land.
Portfolio shuffle. Selling stabilized DFW (Dallas–Fort Worth) stock while acquiring Houston value-add — bridge covers overlap without parking full cash.
Houston can be leased while the DSCR desk still wants 90 days. Bridge carries until DSCR loans Texas funds at 5.75%–10.5%.
Power-of-sale on the first Tuesday is fast; your bid still needs 7–14 business day money. 70% as-is preserves cash versus wiring 100%.
A DFW member buyout needs a priced operating-agreement amendment. Texas underwriting will not treat a text thread as an exit.
Worked example — Houston lease-up bridge
Investor under contract on a $257,500 Houston SFR — replacement property in a 1031 exchange with proceeds from a sold DFW (Dallas–Fort Worth) duplex not yet released by the qualified intermediary.
Houston SFR replacement $257,500. Funded $185,400 at 72% as-is, 10.75% IO, eight months. $14,500 cash punch. $2,000/mo by day 45. Month-six DSCR: 70% of $278,100 at 7.875%. IO ≈ $13,287 versus parking $257,500 while DFW proceeds sat in QI.
Sponsor avoided parking $257,500 cash for 45 days while QI funds cleared — bridge premium was the cost of winning the Houston listing against conventional buyers.
Texas bridge diligence checklist
- Exit lender requirements — match bridge term to DSCR or bank seasoning (often 90+ days post-close)
- Hazard diligence — Harris County (Houston) flood zones and mandatory flood insurance
- Secondary hazard — foundation movement in clay soils
- Tax modeling — among the highest effective rates (1.8%–2.4% in many counties); model at post-close assessed value
- Insurance bind — quote peril lines before close on DFW (Dallas–Fort Worth) acquisitions
- Title and LLC vesting — QI requires exact entity match on 1031 replacement
- Licensing — Texas TREC advertising rules and homestead exemptions do not apply to business-purpose investor loans.
Exit and refinance path
Texas sponsors sequence bridge around submarket and exit product — DFW (Dallas–Fort Worth) files rarely share the same refi clock as San Antonio yield plays.
DSCR refi (stabilized SFR / small MF): After lease execution and 90-day seasoning, DSCR at 5.75%–10.5% retires bridge on Houston files. Target 1.0+ DSCR on documented rent.
Sale exit (light cosmetic): Bridge on DFW (Dallas–Fort Worth) SFR with $25K–$40K cosmetic scope exits retail at month 8–10 — compare carry at 8.99%–13.5% IO vs fix and flip loans Texas if rehab exceeds light compliance.
Flex or shop-plus-flats should hit commercial lending Texas or a split DSCR before LOI — Harris flood and Bexar tax change the stack.
Downstate / tertiary timing: San Antonio banks may require 12-month operating history — extend bridge to 14–16 months when acquiring from estate sellers with incomplete rent rolls.
Texas bridge pitfalls
- Title seasoning — some permanent lenders want 90+ days; match bridge term to exit lender requirements
- Tax reassessment — among the highest effective rates (1.8%–2.4% in many counties); model at post-close assessed value
- Foreclosure friction — power-of-sale foreclosure on the first Tuesday of the month is among the fastest in the U.S.
- Incomplete exit — bridge without a named DSCR desk or sale contract is how extensions stack at 8.99%–13.5%
- Entity mismatch — 1031 replacement vesting errors kill exchanges after you have already paid IO
Related programs
Hard money lenders Texas · Fix and flip loans Texas · Commercial lending Texas · Bridge loans for real estate investors · How to apply for a commercial real estate loan.
Q3 2026 Texas bridge clocks
Q3 2026 Texas bridge: 8.99%–13.5% IO, 6–18 months, up to 75% with a documented exit. DSCR Texas at 5.75%–10.5%. Houston flood bind and Collin reassessment are different clocks.
| Geography (Q3 2026) | Typical bridge asset | As-is cue | Clock that actually works |
|---|---|---|---|
| DFW (Dallas–Fort Worth) | Value-add / 1031 | $245K–$385K | 6–12 months with clean title |
| Houston | DSCR seasoning gap | $195K–$320K | 4–8 months after lease |
| San Antonio | Partner buyout / fourplex | $185K–$275K | 8–14 months |
| San Antonio | Estate / small MF | $185K–$275K | 12–16 months — banks want history |
ARV discipline on sold comps: $285,000 – $420,000. Rehab bands on qualified files: $35,000 – $95,000. DFW heavy rehab funded at 95% with all fees deferred to payoff.
Texas bridge local rules
- Foreclosure type: non-judicial — power-of-sale foreclosure on the first Tuesday of the month is among the fastest in the U.S.
- Rent environment: preempted — state law preempts local rent control
- Income tax on rental profit: none at state level — no state income tax — after-debt cash retains more than in California or New York
- QI entity match on 1031 — vesting errors kill exchanges after IO starts
- 90-day seasoning on many DSCR take-outs — a 5-month bridge on a 90-day seasoning file triggers panicked extensions
- Texas TREC advertising rules and homestead exemptions do not apply to business-purpose investor loans.
Second worked example: San Antonio fourplex overlap (composite)
The Houston SFR 1031 example above is a single-family gap. This Q3 2026 composite is a small multifamily overlap.
$242,050 fourplex, one vacant. $169,435 at 70% as-is / 10.5% / 12 months. $18,600 cash turn. Leased in 52 days. Month 7 DSCR: 71% of $263,835 at 7.75%. Seven-month IO ≈ $10,378 versus cash-parking $242,050.
Hazard note: foundation movement in clay soils. The file still needed a real tax PIN; Texas effective rates are not generic — verify treasurer bills on your parcel.
Four Texas bridge submarkets — distinct gap theses
DFW (Dallas–Fort Worth). Collin/Denton reassessment after close. Thesis: bridge when exit is DSCR or 1031, not open-ended rehab.
Houston. Harris County flood-zone diligence on AE blocks. Thesis: lease-up gap between rehab completion and permanent seasoning.
San Antonio. strong yield-on-cost; Bexar tax ~2%+. Thesis: portfolio shuffle or partner buyout while another asset sells.
San Antonio. strong yield-on-cost; Bexar tax ~2%+. Thesis: longer bank take-out — size 14–18 month terms when exit lender wants operating history.
Q3 2026 Texas bridge carry that is worth it
$1,483 a month on $169,435 at 10.5%. Seven months = $10,378. That beats losing occupied units to an eleven-day QI miss.
The Houston SFR example paid about $13,287 to avoid parking $257,500. Both files work because the exit was a named DSCR at 5.75%–10.5%, not a hope.
DFW (Dallas–Fort Worth) bridges need a longer fuse when municipal compliance is dirty. A 6-month term on open violations is how you request an extension in month five while certificates are still pending. Jaken Finance Group would rather originate 12–14 months at 8.99%–13.5% IO than pretend every submarket shares the same clock.
Write the buyout. Name the take-out. Texas intake: contract, flood cert if Harris, entity chart — (833) 264-7776.
Texas bridge file checklist
- Written exit (DSCR, QI wire date, or sale) with a target month
- As-is comps — not ARV on a gut
- Municipal / violation search on DFW (Dallas–Fort Worth) assets
- Insurance bind with hazard lines quoted
- Entity / QI vesting diagram
- Rent roll or vacancy budget
- Interest reserve if seasonal lease-up is slow
- Tax bill on exact PIN
- Payoff letters on cross-collateralized assets
- Liquidity statement for the equity gap
Texas public records that belong in the file
Verify Harris County taxable value on HCAD before you model DSCR take-out — post-purchase appraisals often reset the tax line. Quote wind/hail deductibles using Texas Department of Insurance consumer tools; Gulf and Hill Country files do not share one premium.
Texas bridge pre-qualification or gap lending request. (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.