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.
When Texas deals need hard money
| Deal type | Why speed matters |
|---|---|
| Courthouse auction in Houston | Proof of funds and a 7–10 business day close beat financed buyers |
| Non-warrantable or distressed collateral | Asset-based decision when agencies decline |
| BRRRR acquisition + rehab start | Bridge to Texas DSCR after lease-up |
| Probate or estate sale | Certainty of capital when title is messy |
| Gap between purchase and permanent debt | Short-term bridge until refi or resale |
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 ARV bands and leverage caps
Investor ARV on DFW sold comps commonly runs $195,000 – $325,000 with $24,000 – $62,000 rehab scopes. Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
No state income tax strengthens after-tax returns on Texas hold and flip exits. Property tax at ~1.68% (among the highest effective rates (1.8%–2.4% in many counties); model at post-close assessed value) flows into carry on every month you hold bridge capital.
Texas hard money terms (2026)
| Term | Texas range |
|---|---|
| Scope risk | Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors |
| Flip advance | Up to 100% of cost when the file qualifies, capped at 75% ARV |
| Bridge advance | Up to 90% of purchase only, for 12–24 months |
| Rate | Interest-only 8.99%–13.5% + points |
| Flip term | 6–12 months |
| Close | 7–10 business days on a complete Houston or DFW file |
| 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.
Jumbo construction and luxury rehab (DFW / Austin)
Volume bands above ($245K–$385K DFW ranch) are not the full Texas book. Sponsors stepping into $900K–$2M+ scrape, custom spec, or 4–20 door entitled pods use different desks:
- Spec home construction Texas — state pillar (MUD/PID, reassessment, draws)
- Luxury new construction DFW · Luxury new construction Austin
- Luxury fix and flip DFW — $750K+ gut without demo
- Community build DFW — cottage and BTR pods
- Volume flip vs jumbo construction — when to use which desk
Apply ground-up: Newbuild.
Diligence before you fund in Texas
Underwrite local risk honestly 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
- Proof of funds for down payment and reserves
- Purchase contract or auction confirmation
- Comps or a desktop valuation toward ARV
- Scope of work and rehab budget
- Entity documents (LLC operating agreement, EIN) for vesting
Bring those and a Texas file can move to term sheet quickly — the asset and the exit do the talking.
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.
BRRRR pathway: hard money → DSCR in Texas
The compounding play in Texas is not the flip check — it is recycling capital. Acquire distressed stock in Houston with hard money, rehab on draws, place a tenant at market rent, then exit to Texas DSCR when the ratio clears at target LTV.
DFW auction timelines reward sponsors who can close in days, then pivot to Texas DSCR once rent is documented.
Define the exit before you borrow
Hard money is a bridge in DFW, not a destination. Underwrite one of two exits before you draw:
- DFW resale — fix and flip Texas when spread clears
- DFW hold — Texas DSCR on executed lease and investor tax
Texas TREC advertising rules and homestead exemptions do not apply to business-purpose investor loans.
When hard money is the wrong tool in DFW
- Stabilized DFW rental with executed leases — use DSCR Texas
- Owner-occupied strategy — business-purpose bridge does not apply
- No credible exit — hard money is a bridge; underwrite the resale or refinance exit before you borrow
Texas hard money FAQ
What does Texas hard money cover?
Business-purpose acquisition and rehab on DFW SFR and small multifamily — sized to $195,000 – $325,000 sold comps, not listing aspirational pricing.
What diligence is Texas-specific?
Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
What is the typical Texas exit?
Resale via fix and flip DFW or stabilize into Texas DSCR when stabilized market rent is reflected in the rent roll.
Texas bridge acquisition checklist
Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
Size Texas bridge exposure to $195,000 – $325,000 sold-comp discipline on DFW, Houston exurban, and San Antonio acquisitions. Scope rehab to $24,000 – $62,000 bands on qualified files; front-load mechanical and rough-in draws so inspections are not wasted on cosmetic passes. Permanent exit: Texas DSCR.
Texas prices, unemployment, and August permits
The Texas all-transactions house price index was 531.31 in the second quarter of 2026. A year earlier it was 523.10. The change is 1.6%. The series is not seasonally adjusted, and the first quarter of 1980 equals 100. Houston, DFW, and San Antonio do not share that one print. Underwrite the county you are actually buying in.
Texas unemployment, not seasonally adjusted, was 4.6% in August 2026 and 4.6% in August 2025. The rate held. It does not replace a rent roll or a sold-comp set in Collin County or Harris County.
New private housing units authorized in Texas were 14,789 in August 2026, compared with 14,273 in August 2025. Not seasonally adjusted. Fresh supply is the competition for a finished flip. If your after-repair value assumes last year’s finishes, walk two new-home communities before you lock the number.
The rehab budget is not inside a 90% bridge
A bridge from Jaken Finance Group goes to 90% of the purchase price and runs 12–24 months. It does not add the rehab on top. Hail roofs in North Texas and flood work in Harris County are large checks. If those checks need to be in the loan, the file is a fix-and-flip: up to 100% of cost on a qualified deal, never above 75% of after-repair value, for 6–12 months. Both products close in 7–10 business days once the file is complete.
Illustration, not a commitment. A Houston purchase at $260,000. The bridge ceiling is $234,000. A $40,000 roof and mechanical package stays outside that bridge. Monthly interest on $234,000 is $1,753.05 at 8.99% and $2,632.50 at 13.5%. Twelve months, the short end of the bridge term, is $21,036.60 or $31,590 before points.
Same city, structured as a flip instead. Purchase $240,000, rehab $48,000, cost $288,000, after-repair value $420,000. Three-quarters of that value is $315,000, which is higher than cost. The illustrated flip loan is $288,000. A month costs $2,157.60 at 8.99% or $3,240 at 13.5%. Ten months of interest is $21,576 or $32,400, again before points, taxes, and insurance.
A second-lien line is not available in Texas
An investment-property line of credit is a different tool, for a house you already own. Jaken Finance Group does not offer the second-lien version in Texas. A first-lien line, when the file fits, is limited to 10 acres in Texas, needs a 680 credit score, and is quoted per file rather than off the hard-money rate card. Read the tradeoffs on HELOC, cash-out, and second-lien DSCR. Do not plan a Texas flip around a second-lien line that the program does not offer there.
Property tax in many Texas counties is the expensive carry item, and Collin and Denton can reassess after the rehab. Model the bill you expect once the county notices the work. How the exit is taxed is a question for your CPA. That answer does not shrink the county tax escrow.
When the house is leased, the take-out is Texas DSCR at 5.75%–10.5%, about 14 business days to close. Cash-out stops at 80% of value for qualified borrowers in select markets. Rate-and-term can reach 85%.
San Antonio: cost clears, barely
Illustration. Purchase $186,000, at the low end of the San Antonio basis band. Rehab $30,000. Cost $216,000. After-repair value $300,000. Three-quarters of that value is $225,000. Cost is the lower test, so a qualified flip in this sketch funds $216,000. A small value miss would flip the test. If the appraisal came in at $280,000, three-quarters would be $210,000, and the loan would stop there.
On $216,000, a month is $1,618.20 at 8.99% and $2,430 at 13.5%. Eight months is $12,945.60 or $19,440, before points. Bexar County taxes, which the metro table already flags as heavy, can rival that interest. Pull the current bill and the likely post-rehab assessment before you treat $19,440 as the whole carry.
Crew travel is not free either. The EIA gasoline and diesel update put U.S. regular gasoline at $4.354 a gallon for the week of October 5, 2026, down from $4.465 the week of September 28. On-highway diesel was $6.199, down from $6.382. Those are national averages, not a Houston rack price. They are still a reason to batch site visits instead of driving the I-10 loop twice a week for a punch list.
Texas hard money bridge gates — DFW (Dallas–Fort Worth) acquisition (2026)
- Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
- Bridge 8.99%–13.5% IO on $285,000 – $420,000 sold-comp discipline in DFW (Dallas–Fort Worth) — Collin/Denton reassessment after close.
- $35,000 – $95,000 rehab bands — front-load mechanical and rough-in draws before cosmetic inspection passes.
DFW (Dallas–Fort Worth) acquisition · 8.99%–13.5% IO · $35,000 – $95,000 draw bands · Houston discipline · Submit scenario · (833) 264-7776.
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.