
Google 5-Star Rated Direct Hard Money Lender
Google 5-Star Rated Direct Hard Money Lender
As the Texas real estate market continues to grow, the demand for real estate investment loans has also increased. The best hard money lenders in Texas simplify real estate investing with streamlined approval and funding times, flexible terms and a wide range of loan programs.
Whether you’re investing in a rental property in Austin or a small commercial building in Houston, Texas hard money lenders can help you secure the funding you need. Learn more about some of the best hard money lenders Texas has to offer.
Hard money loans are short-term, asset-based loans that are secured by real estate. Traditional lenders focus on your credit score, income and debt-to-income ratio. Hard money lenders approve loans based on the value of your real estate.
Conventional loans typically have longer approval times, stricter requirements, and less flexible loan terms. Hard money loans offer faster approval times, a simpler application process, and variable fee structures.
Texas hard money loans include bridge loans, fix-and-flip loans and short-term construction or renovation financing on residential, multifamily and commercial properties.
Texas hard money lenders underwrite loans based on property appraisals and after-repair value calculations, as well as the track record of the borrower. When you apply for a hard money loan, you can typically expect an origination fee of 2-4%, interest rates ranging from 8-15%, and average terms between 6 and 24 months.
Asset-based lending allows you to borrow a portion of the value of your property, typically up to 70%. This allows you to secure financing for real estate investments using your existing equity.
You can also get approved for Texas hard money loans for ground-up projects, where the loan amount is a percentage of the total development cost.
As an investor, there are several reasons you might consider working with a hard money lender in Texas. Hard money loans are easier to get approved for, so you can secure financing even if you don’t meet debt-to-income requirements set by traditional lenders.
Unlike conventional loans, Texas hard money loans offer fast approval and funding times. You can get your money in as little as 5-10 business days with a hard money lender, while conventional lenders can take 30-60 days to approve and fund loans.
If you’re taking on an unconventional project, you might not be able to secure a conventional loan. The best hard money lenders in Texas can work with you to offer tailored financing that meets your unconventional needs.
Hard money lenders also support exit strategy planning, whether you’re refinancing into a long-term permanent loan or preparing for property sale. Mid-term extensions and customized pay-off options provide even more flexibility.
Finding the best hard money lenders in Texas starts with knowing what to look for. Here are some of the factors we consider when we’re evaluating Texas hard money lenders:
When you’re choosing a Texas hard money lender, keep these criteria in mind and do your due diligence to find the best lender.
Finding the best hard money lenders in Texas can be difficult, but we’ve taken care of the research for you. Check out this detailed comparison of the best Texas hard money lenders to find a lender that meets your needs.
Source Capital is a leading provider of hard money loans in Texas, with over 40 years of combined experience and more than $550 million funded in total. Loan sizes range from $100,000 up to $5 million, with loans available for single-family, multifamily, commercial and industrial properties.
Source Capital offers 6-24 month loans with origination fees of 2-3% and fixed rates starting around 8.99%. We have no minimum credit scores, employment requirements or financial minimums to qualify for a loan.
While Source Capital is one of the leading hard money lenders in Texas, fees can be higher on smaller deals and appraisal costs can add up.
Little City Investments is one of the best hard money lenders in Texas if you’re looking for a smaller loan. Loan amounts range from $100,000 to $1.5 million, with LTV up to 70% ARV, interest rates from 9.75-12% and origination fees ranging from 2-3%.
As a smaller lender, Little City Investments offers personalized service that’s particularly solid in the Austin and Texas Hill Country regions. However, its smaller size also means Little City Investments isn’t the best option for very large projects.
HouseMax Funding has funded more than 6,000 loans, including DSCR loans and fix-and-flip loans. You can get started by filling out the loan application to find out if you’re prequalified, and HouseMax Funding will fund your loan as soon as possible.
The team at HouseMax Funding has more than 25 years of lending experience, and their hands-on approach helps you find the right loan for your investment.
Easy Street Capital is headquartered in Austin, which makes this lender an excellent choice if you’re investing in the Austin area. Whether you’re building a new home, fixing and flipping a home or investing in rental property, Easy Street Capital can help.
Loans can close in as little as 48 hours, so you don’t have to worry about missing out on the next big investment.
Loan Ranger Capital is a direct hard money lender in Texas, offering fix-and-flip, DSCR and ground-up construction loans. Once you’re approved for a loan, you can use the online borrower portal to check the status of your loan. If you’re looking for a lender with local expertise, Loan Ranger Capital might be the right choice.
Capstone Capital Partners offers commercial hard money and builder loans from $250,000 to $10 million, making it an ideal choice for investors who need access to more capital for larger projects. Interest rates range from 8.5-11%, with origination fees from 2-3.5% and LTV up to 70%.
Capstone Capital Partners loans typically close in 10-21 days, which means approval and funding times are longer than other lenders. Investors must have a net worth of at least $250,000 to qualify.
For commercial and development projects, Capstone Capital Partners offers competitive pricing. However, steep requirements can discourage smaller investors.
Rehab Financial Group (RFG) has a combined 50 years of real estate and lending experience, making this one of the best hard money lenders in Texas. You can get your loan approved the day you apply, with loans closing in as little as 2 weeks. RFG also offers flexible terms with no prepayment penalties.
Binary Investments, LLC offers a wide range of hard money loan programs, including fix-and-flip, cashout refinance, commercial, residential and new construction development loans. With more than a decade of lending experience, Binary Investments has the expertise to help you get your next project off the ground.
From ignoring prepayment penalties to underestimating combined fees, there are several potential mistakes you can make when you’re looking for the best hard money lender in Texas. Here are some common pitfalls you should avoid.
Whenever you’re agreeing to a loan, it’s important to read all the term sheet details, including the fine print. Look for details about amortization, default interest rates, extension options, and conditions that trigger rate hikes. Having a thorough understanding of your loan terms will help you avoid unnecessary fees and rate hikes.
Some Texas hard money lenders penalize you for refinancing or paying off your loan early, and those prepayment penalties can cost you a lot of money. Before you sign any loan documents, make sure you understand how prepayment penalties work under the agreement.
It’s important to find experienced lenders with a proven track record, including funded volume, years in business, state licensing, borrower testimonials and historical performance. Choosing an experienced, reputable lender makes investing easier.
Origination fees, underwriting costs and inspection or appraisal fees can add up quickly, so make sure you understand which fees you’re responsible for and how they impact the total cost of your loan.
Hard money lenders in Texas typically have an LTV cap of 65-70%, although the exact number varies depending on the lender you choose.
Texas hard money loans can be funded in as little as 5-10 business days, but approval and funding times vary.
Yes, hard money loans are available for different types of properties including single-family, multifamily, commercial and industrial properties.
Hard money loan rates can be negotiable depending on your credit and the property’s risk. Before agreeing to a loan, compare interest rates from different hard money lenders.
Whether you go with Source Capital for speed and transparency, Noble Mortgage for its Houston expertise or Capstone for its commercial focus, choosing the best hard money lender in Texas starts with comparing your options.
It’s important to choose a hard money loan that matches your investment goals, which includes the funding speed and fee structure. Apply for a Texas hard money loan with Source Capital or call us at (888) 250.2943 to learn more.
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