Hard Money Lenders in Texas: Fix and Flip and Construction Loans

Hard money lenders in Texas make short-term loans secured by investment property, mainly for fix and flip, ground-up construction, and bridge deals. They qualify the deal more than your income. Lendoor is a nationwide direct lender serving Texas, with fix and flip loans of up to 100% of purchase and up to 100% of rehab.

What is a hard money loan in Texas?

A hard money loan is a short-term, business-purpose loan secured by real estate. Investors use it to buy and renovate a house, build a new one, or bridge to a sale or long-term loan. The lender focuses on the property, the budget, the after repair value (ARV), and your plan to repay, rather than your W-2 income.

Hard money loans cost more than bank loans and run for shorter terms. In exchange, they fund properties that banks often won't touch, such as houses that need major work, and they size the loan on the project rather than your tax returns.

In Texas, real estate loans are commonly secured by a deed of trust, which involves three parties: the borrower, the lender, and a trustee. The Texas State Law Library explains that a deed of trust with a "power of sale" clause allows a non-judicial foreclosure, governed by Section 51.002 of the Texas Property Code (source). For you as a borrower, the practical point is to read your loan documents carefully and understand your repayment obligations before you sign.

What do Texas investors use hard money loans for?

Rates float and vary by deal, and credit minimums and loan sizes vary by program. All loans are subject to underwriting.

How do fix and flip loans work in Texas?

A fix and flip loan covers part of the purchase price at closing and holds the renovation budget for release in draws as work is completed. When the house is finished, you sell it and repay the loan, or refinance into a rental loan.

Flip loans are sized on cost, as a percentage of purchase and a percentage of rehab, and capped by a percentage of ARV. Our guide to loan to value vs loan to cost walks through the math.

Lendoor offers two fix and flip tiers:

New to flipping? Read fix and flip loans for beginners.

How do ground-up construction loans work in Texas?

A ground-up loan funds land and construction for a new home. Leverage is measured as loan to cost (LTC), meaning the loan divided by the total project cost. Construction funds are released in draws as the build progresses and is inspected.

Lendoor's ground-up program offers up to 92.5% LTC. If you have no building experience, you may qualify for up to 95% LTC by working with a general contractor. The GC brings the construction experience, and the GC does not sign the loan. Our guide to new construction loans for investors covers the process in detail. The GC must show 3+ completed builds in the area within the last 3 years, and LTC counts land, hard costs, soft costs and interest reserves.

How do I choose a hard money lender in Dallas or San Antonio?

If you searched for the best hard money lender in Dallas or the best hard money lender in San Antonio, the best lender depends on your deal. We are a lender, so we won't rank lenders here. Instead, use this checklist to compare any lender you're considering, in Dallas, San Antonio, or anywhere else in Texas.

Lender checklist

• Is it a direct lender? Ask who underwrites the loan, who funds it, and who makes the final decision. A direct lender underwrites and funds its own loans, so the terms you're quoted come from the party making the decision.
• Is leverage published? Look for written maximums for purchase, rehab, LTC, and ARV caps. Published numbers let you run your deal before you apply.
• How do draws work? Ask how draws are requested, how work is inspected, and how long releases usually take.
• Are there experience tiers? Ask what a first-time flipper or builder may qualify for, what counts as experience, and when you move to the next tier.
• What's the exit to DSCR? If you might keep the property as a rental, ask whether the lender offers a long-term DSCR loan to refinance into.
• What's the full cost? Get the rate, points, fees, extension terms, and any prepayment terms in writing.
• Does it lend where your deal is? Confirm the lender covers your state and property type.

Ask every lender the same questions and compare the written answers side by side.

How does Lendoor answer that checklist?

How do I exit a Texas flip into a rental?

Some investors finish a project and decide to keep it. In that case, you refinance the short-term loan into a long-term DSCR loan, which qualifies on the property's rent compared with its payment instead of your personal income. Lendoor's DSCR program covers that rental exit. Read our guide to DSCR loans in Texas.

How do I apply with Lendoor?

1. Gather your deal details: address, purchase price, rehab or construction budget, ARV, and contractor.
2. Submit your deal through our deal submission form.
3. Review terms. We review the deal and send terms. Timing depends on the deal and how fast documents come in.
4. Appraisal and underwriting. We confirm value, review the budget, credit, and cash to close.
5. Close and start work. Rehab or construction funds are released in draws.

Learn more about Lendoor's team.

Frequently asked questions

What is a hard money lender in Texas?

A hard money lender in Texas makes short-term loans secured by investment property, mainly for flips, new construction, and bridge deals. The loan is based mostly on the property and project rather than your personal income.

Does Lendoor lend in Texas?

Yes. Lendoor is a nationwide direct lender that lends in 45 states, including Texas. The excluded states are Nevada, Utah, North Dakota, South Dakota, and Alaska.

How much does Lendoor fund on a Texas fix and flip?

Experienced flippers may qualify for up to 100% of purchase and up to 100% of rehab with $0 down. First-time flippers may qualify for up to 90% of purchase and up to 100% of rehab. All loans are subject to underwriting and ARV limits.

Can I get a construction loan in Texas with no experience?

Possibly. At Lendoor, borrowers with no building experience who use a general contractor may qualify for up to 95% LTC on ground-up construction, and the GC does not sign the loan.

Who is the best hard money lender in Dallas or San Antonio?

It depends on your deal. Compare lenders on whether they lend directly, publish their leverage, explain their draw process, offer experience tiers, and offer a DSCR loan for a rental exit.

How do rehab draws work?

The lender holds the renovation budget and releases it in stages after each stage of work is completed and inspected. You need cash to complete each stage before it is reimbursed.

Can I refinance a Texas flip into a rental loan?

Yes. Many investors refinance into a DSCR loan, which qualifies on the property's rent instead of personal income. Lendoor offers DSCR loans for that rental exit.

Have a Texas deal?

Send us the property, the price, and your budget. Submit your deal and we'll review it and send terms.

About the author

Dana Lefkowitz is a Co-Founder of Lendoor. NMLS #1997062.

Lendoor, LLC, NMLS #2856707. This article is general information, not a loan offer or commitment, and not legal advice. All loans are subject to underwriting and approval. Terms vary by property and borrower.