Fix to Rent Loans Texas

Property Types

1-4 unit residential properties, including single-family homes, townhomes, condos, duplexes, triplexes, and quadplexes.

Required Documentation

A legally registered business is required to get funding.

• Driver’s License or State ID
• LLC Articles of Organization
• LLC Operating Agreement
• EIN Letter (IRS-issued tax ID)

Minimum Credit Score

680+

Minimum Loan Amount

$100,000+

Previous Experience

No experience is required to secure financing, however experienced investors are granted more flexibility for projected rental income.

Rehab Experience

No previous experience is required unless you are changing the number of bedrooms, expanding the square footage, or doing a significant renovation.

Landlord Experience

No experience is required to refinance into a 30-year fixed rate loan product, provided investors own a primary residence.

Minimum DSCR

1.1x is the minimum DSCR requirement. To calculate DSCR, divide rental income by the sum of property taxes, insurance, principal, interest payments and any HOA fees.

Purchase and Rehab

The first stage is a short-term loan.

Purchase Financing	Up to 90% LTC
Rehab Financing	Up to 100%
After-Repair Value	Up to 75% ARV
Interest Rates	Starting at 8%
Loan Terms	6 or 12 months
Prepayment Penalty	None

Rent and Refinance

The second stage is a long-term loan.

Refinance	Up to 80% LTV
Cash Out Refinance	Up to 75% LTV
Minimum DSCR	1.1
Interest Rates	Starting at 7%
Loan terms	30-year fixed
Prepayment Penalty	3, 5 or 7 years

FAQs About Fix and Rent Loans in Texas

Get quick answers to common questions.

What’s the minimum credit score?

A minimum credit score of 680 is required.

What’s the minimum loan amount?

The minimum loan amount is $100,000.

Is a lease required when refinancing?

A lease is not required, but grants you higher leverage when refinancing.

Is there a seasoning period when refinancing?

There is no minimum seasoning period:
0-3 months: As-is value calculated using the lower of the appraised value or purchase price plus documented rehab costs.
3-6 months: Up to 75% LTV
6+ months: Up to 80% LTV

Do you work with new investors?

Yes, first-time investors are welcome.

Can I flip the property instead of rent it out?

Yes, you may choose to sell the property rather than rent it out.

Is there a prepayment penalty?

There is no prepayment penalty in the first stage. After rehabbing, you can refinance to a rental loan or sell the property.

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 carries higher interest rates, which are reduced in the second stage when refinancing.

Is an appraisal required?

There is no appraisal on the rehab loan. However, after the renovation is complete, an appraisal is required when refinancing.

What determines my interest rate?

Interest rates vary depending on your credit score, loan to value and real estate market risk.

Do you offer interest only loan options?

Yes, both rehab and DSCR loans have interest only options.