Home / Loan programs / Fix and flip loans
Fix and flip loans in Dallas–Fort Worth
Bridge financing for investors who buy, renovate and resell in Dallas, Fort Worth and North Texas. One loan covers up to 90% of the purchase and the entire rehab budget.
Fix and flip loan terms
| Purchase financed | up to 90% |
| Rehab financed | up to 100% |
| Cap on after-repair value | 70 to 75% |
| Credit scores from | 600 |
| Term | 6 to 24 months |
| Payments | interest only |
| Average closing | 21 days or less |
The 90% and 100% figures apply at a 720+ credit score. Below that, leverage and pricing adjust down to a 600 minimum.
How the loan amount is worked out
The loan is built from two numbers. The first is a share of what you pay for the property. The second is your renovation budget, which is held back and paid out in draws as each stage of work is finished. The two together are limited to 70 to 75% of the after-repair value (ARV): the price the property should bring once the work is complete.
Example
| You buy the house for | $260,000 |
| Your rehab budget is | $85,000 |
| Expected resale value (ARV) | $470,000 |
| 90% of the purchase | $234,000 |
| 100% of the rehab | $85,000 |
| Loan amount | $319,000 |
| 75% of ARV, the ceiling | $352,500 |
| Down payment, before closing costs | $26,000 |
How experience and credit change the terms
- First deal? You can still qualify. A new investor with a 720+ score is eligible for the full 90% and 100%.
- Five or more flips in the past two years? You can close with no inspection and no appraisal, up to 75% of ARV.
- Score under 720? Programs run down to 600, with less leverage.
Experience is counted as properties you bought and sold in the past 24 months that were acquired within the past 36 months.
Built around a resale
- Interest-only payments while you renovate
- 6 to 24 month terms
- No prepayment penalty: pay off the day you sell
- No income or job verification
When a project stalls: mid-rehab loans
If a renovation is under way and the money has run out, a mid-rehab loan lends on the property as it stands today and adds the funds to finish.
What a North Texas flip involves
- Foundations. North Texas sits on expansive clay that swells when wet and shrinks when dry, so foundation movement is common in older slab and pier-and-beam houses. Get a foundation inspection or an engineer’s report before you set the rehab budget.
- Roofs and insurance. Hail and wind drive insurance costs across the metroplex, and an older roof can raise the premium or limit coverage. Parts of the area along the Trinity River and its creeks are in FEMA flood zones. Get insurance quotes before you make an offer.
- Property tax while you hold. Texas has no state income tax, so local governments rely on property tax, and combined rates in Dallas–Fort Worth are often around 2% of value or more. Investment property gets no homestead exemption. For the 2024 to 2026 tax years, the taxable value of non-homestead property worth $5 million or less can rise no more than 20% a year, but the limit resets when the property is sold, so a new buyer is taxed on full market value.
- Low closing taxes. Texas has no state or local transfer tax and no mortgage recording tax, so closing costs are lower than in many states. Title insurance premiums are set by the Texas Department of Insurance, and closings are handled by a title company.
- Permits and historic districts. Each city runs its own permit office. Dallas has historic districts in East Dallas and Oak Cliff, including Swiss Avenue, Munger Place, Junius Heights and Winnetka Heights, and Fort Worth has districts such as Fairmount and Ryan Place. Exterior work in a historic district needs approval from the city’s landmark or historic preservation commission as well as a building permit.
- Where the deals are. Oak Cliff, Pleasant Grove, South Dallas and Lake Highlands in Dallas; East Fort Worth, Polytechnic and Riverside in Fort Worth; and older neighborhoods in Garland, Mesquite, Irving and Arlington.
Documents we ask for
- Loan application
- Signed purchase contract, or the settlement statement from your purchase if you are refinancing
- A rehab budget broken into line items with a clear scope of work
- Contact details for your insurance agent and title company
- For an LLC: articles of organization (certificate of formation in Texas), EIN letter and company agreement
- For experienced investors: your projects from the last 3 years with settlement statements
The full list is in our hard money loan document checklist.
Fix and flip loans: common questions
As much as 90% of the purchase price and 100% of the renovation budget, provided the total loan is no more than 70 to 75% of the after-repair value. Those figures apply to borrowers with a credit score of 720 or higher.
The average is up to 21 days. Once title work and insurance are ready, a loan can close in about 7 days at your title company.
No. First-time investors can qualify. Investors who have completed 5 or more flips in the past 2 years get a shorter process with no inspection or appraisal.
No. Texas has no transfer tax and no mortgage recording tax. Budget for title insurance, which is priced at rates set by the state, and the usual closing and recording fees.
Often, yes, especially on older houses. Expansive clay soil makes foundation repairs common in North Texas, so get an inspection before you set the rehab budget.
Yes. When the work is done, a DSCR rental loan can replace the fix and flip loan, with a cash-out refinance at up to 80% loan-to-value.
No. We lend on investment property only.
Under contract on a flip?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.