Texas hard money is asset-based bridge capital: decisions hinge on the deal and the exit, not on W-2 income. From Houston to DFW (Dallas–Fort Worth) to San Antonio, it funds the deals that need to close before a bank could even order an appraisal.
What Texas investors use hard money for
- Bridge between purchase and permanent financing or sale
- BRRRR starts — acquire and rehab, then exit to Texas DSCR
- Distressed / non-warrantable assets a conventional lender will not touch
- Auction and trustee-sale buys — close on the courthouse timeline, not a 45-day bank clock
Why speed matters here: Texas foreclosure is non-judicial — power-of-sale foreclosure on the first Tuesday of the month is among the fastest in the U.S. Cash-like certainty wins these deals against slower conventional offers.
Texas hard money terms (2026)
| Term | Texas range |
|---|---|
| Leverage | Up to ~90% of purchase + rehab, capped to ARV |
| Rate | Interest-only, ~10%–13% + points |
| Term | 6–18 months |
| Close | As fast as 7–14 days |
| Basis | Asset-based; $285,000 – $420,000 typical ARV |
Texas metros we fund
| Metro | Typical basis | Rent band | On-the-ground notes |
|---|---|---|---|
| Houston | $195K–$320K | $1,650–$2,350 | Harris County flood-zone diligence on AE blocks |
| DFW (Dallas–Fort Worth) | $245K–$385K | $1,850–$2,650 | Collin/Denton reassessment after close |
| San Antonio | $185K–$275K | $1,550–$2,100 | strong yield-on-cost; Bexar tax ~2%+ |
Texas has no state income tax, which strengthens after-tax returns on the eventual hold or flip exit.
Diligence before you fund in Texas
Insurance and hazard diligence matter in Texas:
- Harris County (Houston) flood zones and mandatory flood insurance
- Foundation movement in clay soils
- Hail in North Texas
What we need to issue a Texas term sheet
- Entity documents (LLC operating agreement, EIN) for vesting
- Scope of work and rehab budget
- Purchase contract or auction confirmation
- A credible exit — resale comps or projected rent
- Proof of funds for down payment and reserves
Clean documents on these points are what compress a Texas closing to days, not weeks.
Recent Texas deal
DFW heavy rehab funded at 95% with all fees deferred to payoff. The pattern repeats: speed on acquisition, a clean scope, and a defined exit.
Worked example: Houston flood-zone BRRRR
- Acquire AE-flood SFR in Harris County: $215K (hard money 88% LTC)
- Rehab elevation + interior: $52K on draws — flood insurance quote in scope before close
- Stabilize at $1,950/mo LTR
- Refi into Texas DSCR at 70% LTV on $310K appraised
- Extract equity for next acquisition — no state income tax on rental profit strengthens hold yield
Harris County diligence: never skip flood cert on Houston acquisitions — it kills refi if discovered post-close.
Worked example: San Antonio BRRRR on thin spread
| Line | San Antonio SFR |
|---|---|
| Purchase (distressed) | $198,000 |
| Hard money (88% LTC) | $174,240 funded |
| Rehab (cosmetic + HVAC) | $38,000 on draws |
| Stabilized rent | $1,725/mo |
| Appraised ARV | $278,000 |
| DSCR refi at 70% LTV | $194,600 — extract ~$20K for next door |
Bexar County property tax runs ~2%+ — model it in carry before you commit. San Antonio basis is lower than Houston or DFW, so leverage discipline matters more than speed alone.
First Tuesday foreclosure calendar
Texas non-judicial sales hit the first Tuesday of each month at the county courthouse. Hard money exists to win those lanes — conventional buyers rarely close in 10 days. Map your earnest money and proof-of-funds timeline to the auction date, not a bank’s 45-day clock.
Define the exit before you borrow
Hard money is a bridge, not a destination. In Texas that means one of two exits:
- Resale — finish and sell via fix and flip loans Texas economics
- Refinance — stabilize and hold with a Texas DSCR loan
Texas TREC advertising rules and homestead exemptions do not apply to business-purpose investor loans.
Texas hard money FAQ
How fast can a Texas hard money loan close?
With clear title and a workable scope, Texas deals can fund in roughly 7–14 days — fast enough for Houston auction and estate deadlines.
What leverage do Texas hard money lenders offer?
Commonly up to ~90% of purchase plus rehab, capped against ARV (often the $285,000 – $420,000 band in Texas). Pricing reflects speed and asset risk, not your credit score alone.
What is the exit on a Texas hard money loan?
Either resale via fix and flip, or refinance into a Texas DSCR loan on stabilized rent. Define the exit before you fund.
Get Your Texas Hard Money Quote · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.