Close as fast as 3 days with no appraisal and get up to 90% financing.
Fix to Rent Financing for Real Estate Investors in Texas
Purchase, renovate and hold investment properties in long-term financing. Fix to rent loans are designed for real estate investors who need quick closings to win bids in competitive markets.
Initially these start off as fix and flip loans with no prepayment penalty. This streamlined short term loan process allows investors to get the money needed for rehab costs. Then after renovations are complete, real estate investors refinance into the long term rental loan product.
At this stage of the loan process, underwriting will focus on the projected rental income an investment property can generate. Then, they’ll compare cash flow to property taxes, insurance and HOA fees using a DSCR calculator.
Texas Fix to Rent Loan Terms
Since fix to rent loans have a rehab component they are considered higher risk and are separated into two stages to mitigate that risk.
First Stage of Fix to Rent Loan
| Minimum loan | $100,000+ |
| Purchase financing | Up to 90% LTC |
| Rehab financing | Up to 100% |
| After-repair value | Up to 70% ARV |
| Loan options | 6 and 12 month |
| Prepayment penalty | None |
Second Stage: Long-Term Rental Loan
| Refinance | Up to 80% LTV |
| Cash out refinance | Up to 75% LTV |
| Loan options | 30 year fixed |
| Prepayment penalty | 3 or 5 years |
What’s the minimum credit score for fix to rent loans in Texas?
The minimum credit score for fix to rent loans in Texas is 680 or higher.
Is flipping experience required?
No previous experience is required unless you are changing the number of bedrooms, expanding the square footage, or doing a significant renovation.
Can first-time investors qualify for fix to rent loans in Texas?
Yes, first-time real estate investors can qualify for Floria fix to rent loans.
Is there interest on rehab costs?
There is no interest when refinancing rehab costs, until you request those funds to be disbursed. Once they released, that’s when interest kicks in.
Is an appraisal required?
There is no appraisal on the rehab loan (first stage). However, after the renovation is complete, an appraisal will be required to qualify for the long-term financing component. This is only if you choose to continue the fix to rent loan process.
Can I flip the property instead of rent it out?
Yes, you may choose to sell the property rather than rent it out.
What are the current interest rates for fix to rent loans?
Fix-to-rent loans involve a multi-stage loan process, comprising of acquisition, rehab, and final stabilization. The rehab phase typically carries higher interest rates, which are reduced during the second stage when refinancing at lower rates.
Is there a prepayment penalty?
The first stage does not have a prepayment penalty. This is to encourage you to finish the renovation and refinance to a rental loan or sell the property.
Request a Loan Quote
- No application fee
- No credit pull for loan quote
- No appraisal
- Secure up to 90% financing
- Close as fast as 3 days
When you have a property under contract, you need a financing partner with experience, one who can offer a fast closing and high leverage.
You want to keep as much of your liquid cash as possible and close quickly. We understand what’s important to you.