Texas Fix and Flip Loan
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Last Updated: April 14, 2025
Welcome to OfferMarketâs Fix and Flip Loan Program for Texas! Whether youâre a firstâtime investor or an experienced flipper, our program is designed to provide the flexibility and funding you need to succeed. Below, weâve broken down the 12 essential details of the program so you can confidently apply for your loan and get started in the Lone Star State.
What You Get with OfferMarketâs Fix and Flip Loan in Texas
At OfferMarket, we offer a flexible fix-and-flip loan program tailored to your needs in Texas. Whether youâre a beginner or an experienced investor, our program provides the funding, support, and competitive terms to help you excel. Here's what you can expect when you choose OfferMarket for your next flip.
1. Loan Amount Details
Minimum: $25,000 â perfect for smaller projects or investors just starting out.
Maximum: $2,000,000 â larger loans are available for those with 3+ years of experience and strong market comparables.
How It Works: Your loan size is based on the purchase price, rehab budget, and the After Repair Value (ARV) of your property, ensuring you have the capital necessary to transform your investment.
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 â this threshold ensures your project has profitable potential.
Maximum Loan-to-ARV (LTARV): Up to 75%, adjusted by experience:
70% for beginners focusing on light rehabs.
75% for experienced flippers handling moderate rehabilitations.
Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family properties) or in-house valuations to secure an accurate ARV.
3. Funding Breakdown
Initial Advance: Up to 90% of the purchase price:
80% for those with limited experience.
90% for experienced investors (5+ flips).
Construction Holdback: Up to 100% of rehab costs, disbursed through a user-friendly app-based draw request system with a 0-2 day turnaround.
Down Payment: A minimum of $10,000 is required for properties under $100K.
Draws: Thereâs no set minimum or maximum; for example, 50% of delivered (but not yet installed) materials will be funded.
4. Interest Rate and Fees
Interest Rate: Our rates are flexible and reflect market conditionsâcontact us for a personalized quote.
Origination Fee: 1.5 to 2 points (e.g., 2 points on a $100,000 loan equates to $2,000 upfront).
Other Fees:
$270 per draw.
$30 per wire transfer.
Appraisal costs are the borrowerâs responsibility.
Interest Accrual: For loans under $100K, interest is charged on the full loan amount (âfull boatâ). For loans of $100K or more, interest accrues only on the funds that have been disbursed.
5. Loan Term
Duration: The standard term is 12 months, with flexibility available for larger or more complex projects.
Extensions: You can extend your loan term by up to 50% (for instance, adding 6 months to a 12-month term) for an additional fee:
1% for a 3-month extension.
2.5% for a 6-month extension.
6. Repayment Structure
Payments: Make interest-only payments during the term, with a balloon payment due at maturity.
Prepayment Penalty: There is noneâpay off your loan early without incurring extra fees.
Recourse: Loans are full recourse. For property purchases, 51% of your LLC or Corporation guarantees the loan; for refinances, a 100% guarantee is required.
7. Exit Strategy Requirements
Sale: Aim for a minimum of 30% ROI and at least a $15,000 profit.
Refinance: Target a Debt Service Coverage Ratio (DSCR) of 1.1 after repairs.
Flexibility: Whether you opt to flip or rent the property, the program provides multiple exit options based on current market conditions.
8. Eligibility Criteria
Experience: No prior experience is required for beginners; investors start at Tier 1 (80% advance). With 10+ projects under your belt, you qualify for Tier 5 (90% advance).
Credit Score: A minimum score of 680 is required, though exceptions are made for scores between 660-679.
Borrowing Entity: Applications must be submitted through an LLC or Corporation.
Cash Reserves: Youâll need enough cash to cover closing costs as well as 25% of your rehab budget in liquid assets (available in bank, brokerage, or retirement accounts).
9. Project and Property Requirements
Eligible Properties:
- 1-4 unit residential properties including single-family homes, duplexes, triplexes, quadplexes, condos, townhomes, and Planned Unit Developments (PUDs).
Minimum Property Size:
700 sq ft for single-family homes.
500 sq ft per unit for duplexes, triplexes, or quadplexes.
500 sq ft for condos.
Maximum Acreage: Up to 5 acresâideal for suburban or rural projects in Texas.
Rehab Scope: Ranges from light renovations (less than 25% of the purchase price) to comprehensive projects (100%+ of the purchase price), based on your experience.
Location: We lend throughout Texas, covering major urban markets like Houston, Dallas, Austin, and San Antonio as well as select rural areas. Note that rural properties might have a -20% advance adjustment and require at least 3+ years of experience.
10. Risk and Approval Process
Underwriting: We evaluate your project based on ARV, rehab scope, experience, and local market conditions (for example, comparing Houston neighborhood comps or Dallas liquidity trends).
Valuation: Our valuation comes from either formal appraisal reports or our in-house experts, depending on the nature of your deal.
Approval Timeline: Draw requests are processed in 0-2 days, and initial funding is expedited once all documentation is provided.
Default Rate: Fewer than 0.5% of our loans have ever defaulted, reflecting our strong commitment to investor success.
11. Support and Flexibility
Guidance: Weâre with you every step of the way. Our dedicated deal advisors and risk managers offer personalized guidance, along with calculators and rehab scope advice specifically for the Texas market.
Rehab Oversight: Maintain full control over your project through self-serve draw inspections and real-time progress tracking.
Advanced Draws: In select cases, we offer advanced draws to ensure your project stays on trackâthese are provided at our discretion based on your deal's unique needs.
12. Transparency and Fine Print
Sample Costs: Consider the following sample scenario for a $200,000 property in Texas:
Purchase Price: $200,000
ARV: $300,000
Loan-to-ARV: Up to 75% = $225,000
Initial Advance: Up to 90% of the purchase price = $180,000 (assuming youâre an experienced investor)
Construction Holdback: Funding is available for up to 100% of your rehab costs, accessible via app-based draw requests.
Fees:
Origination fee (2 points) = $4,000
Draw fees = $270 per draw
Wire fees = $30 per transfer
Appraisal costs are borne by the borrower
Hidden Costs: Other fees include draw fees, wire fees, and any extension fees (e.g., 1% for 3 months, 2.5% for 6 months)âall of which are disclosed upfront to avoid surprises.
Rural/Complex Terms:
Rural properties in Texas might see a -20% advance adjustment due to their remote location.
For extensive rehabs (where costs exceed 100% of the purchase price), the LTARV may be capped at 70% or adjusted to an 85-90% Loan-to-Full-Cost (LTFC) ratio, depending on the projectâs complexity.
Why Fix and Flip Loan in Texas is a Good Choice
Texasâs real estate market is teeming with opportunities for fix-and-flip investors. Driven by strong economic growth, job expansion, and a diverse range of communitiesâfrom the bustling urban centers of Houston, Dallas, Austin, and San Antonio to emerging suburban and rural localesâTexas offers a vibrant landscape for property transformations. With OfferMarketâs fix and flip loan, you gain not only substantial funding but also a partner that understands the nuances of the Texas market.
How You Can Make Profits with Our Fix and Flip Loan Program
Imagine youâre eyeing a property in Houston with a purchase price of $200,000:
Property Purchase: You acquire the property for $200,000.
After Repair Value (ARV): Once renovated, the ARV is projected to reach $300,000.
Loan Amount: Based on a loan-to-ARV ratio of up to 75%, you could qualify for a loan of up to $225,000.
Funding Advance: As an experienced investor, you can receive up to 90% of the purchase priceâ$180,000âto get started.
Rehab Funding: Additionally, you have access to 100% of your rehab budget through our streamlined draw requests.
Assuming your rehab expenses are around $50,000, selling the property at an ARV of $300,000 positions you for roughly a 30% return on investment (ROI) and a robust profit after deducting fees, rehab costs, and other expenses. With OfferMarketâs support, this lucrative scenario can become your next success story in Texas.
Why Choose OfferMarket?
At OfferMarket, our mission is to empower Texas real estate investors with the best fix and flip loan solutions available. Whether youâre revitalizing a property in Houston, breathing new life into a condo in Dallas, or rejuvenating a rural home out in West Texas, our program offers:
Competitive loan terms with up to 90% funding.
Flexible repayment structures with no prepayment penalties.
Fast processing with rapid draw requests and transparent fees.
Personalized support from a team of experienced advisors.
Ready to flip your next property in Texas? Request your loan today and take the first step toward profitable real estate investments in the Lone Star State.
Texas Fix and Flip Loan: Documentation Requirements
For a smooth and efficient approval process, we require specific documentation to assess your project and confirm compliance with our loan terms. Below are the key documents needed for both purchase and refinance transactions in Texas.
Purchase Transaction Requirements
For all purchase transactions in Texas, you must provide:
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed by both buyer and seller. |
| Credit Report | Soft tri-merge credit report for each borrowing entity member serving as a guarantor. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each borrowing entity member. |
| ID Verification | Government-issued ID (e.g., driver's license, passport, or Green Card). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Scope of Work | A detailed rehab budget used to determine ARV. |
| Appraisal Report | You will receive a link to pay your appraisal invoice; the appraisal will then be uploaded to your loan file. |
| Bank Statements | The two most recent statements for each guarantor; accounts can be personal (bank, brokerage, or retirement) and need not be in the borrowing entityâs name. |
| Letter of Explanation | Provided if requested by underwriting for large deposits, late payments, or any background issues. |
Refinance Transaction Requirements
For refinance transactions, similar documentation is required:
| Loan File Section | Document |
|---|---|
| Settlement Statement | Fully executed by both the buyer and the settlement agent. |
| Credit Report | Soft tri-merge credit report for each guarantor in the borrowing entity. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | Government-issued ID (e.g., driver's license, passport, or Green Card). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Sunk Costs | Detailed line items of costs that have already been incurred. |
| Scope of Work | A comprehensive rehab budget to determine ARV and guide property renovations. |
| Appraisal Report | A link will be provided for payment of your appraisal invoice; the appraisal is then attached to your loan file. |
| Bank Statements | The two most recent statements for each guarantor; these accounts can be personal and need not reflect the borrowing entityâs name. |
| Letter of Explanation | If requested by underwriting for issues like large deposits or late payments. |
Special Requirements for Loans Over $1M
For loans above $1M (up to the $2M maximum), additional criteria apply to ensure the projectâs viability and the borrowerâs financial stability:
| Criteria | Explanation |
|---|---|
| Experience | A minimum of 3 similar or higher-priced projects is strongly preferred. |
| Market Liquidity | At least 3 comparable sales (comps) within a 2-mile radius on the MLS in the last 6 months. |
| Credit Score | Minimum 680, with at least 5 trade lines spanning a 24-month history. |
| Rural Designation | Not eligible if the property is classified as rural by the CFPB, USDA, or in the appraisal report. |
| Track Record | Required for each member of the borrowing entity. |
Glossary of Key Terms
Hereâs a quick reference for some key terms used in our loan agreements:
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unitâa secondary housing unit on the same parcel as the main home. |
| Arms-Length | A transaction conducted between independent parties, ensuring fair market value. |
| Non-Arms-Length | A transaction affected by personal or business relationships that could influence fairness or pricing. |
| Initial Advance | The portion of the total loan amount allocated toward the property purchase. |
| Construction Holdback | The portion of the total loan dedicated to covering rehab costs. |
| LTARV | Loan-to-After-Repair Valueâthe ratio of the loan amount to the propertyâs estimated value post-rehab. |
| LTC | Loan-to-Costâthe ratio of the loan amount to the sum of the purchase and rehab costs. |
| LTFC | Loan-to-Full-Costâthe ratio of the total loan amount to the complete cost, including both purchase price and rehab expenses. |
Get an Instant Fix and Flip Loan Quote in Texas
OfferMarket is your trusted partner for real estate investing in Texas. Our Fix and Flip Loan Program is designed to offer you the financial flexibility and competitive rates needed to succeed in your projects. Start today by requesting an instant quote for your next fix-and-flip investment in Texas.
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