A typical flip in San Antonio lost money in the second quarter of 2026. ATTOM’s latest report puts the typical return there at negative 0.3%, with Dallas at 1.8%, Austin at 2.8%, and Houston at 3.7%. If you are shopping for a Texas fix and flip loan right now, the loan terms matter less than whether the deal works at all.
Here is how Texas fix and flip loans are structured, what they cost, and how I run the numbers before an investor commits to a Texas flip.
How Do Texas Fix and Flip Loans Work?
A Texas fix and flip loan is short-term, business-purpose debt that funds the purchase of a distressed 1-4 unit property and the renovation budget, then gets repaid when you sell. Terms run 9 to 18 months, interest-only, with the rehab money released in draws as work is completed.
Most lenders in our network size the loan two ways at once. They advance a percentage of the purchase price (typically 80-90%) and a percentage of the rehab cost (up to 100%), then cap the total at 70-75% of the after-repair value, or ARV. Whichever number is lower sets your loan.
These loans are for investment properties only. Texas has strong homestead protections for owner-occupied homes, and that is exactly why fix and flip lending stays on the business-purpose side. If you plan to live in the property, this is the wrong product.
What Do Texas Fix and Flip Loans Cost in 2026?
Expect interest rates in the high single digits to low double digits, plus 1 to 3 points at closing. Experienced borrowers with a track record land at the better end. First-time flippers pay more and get less leverage. For a full breakdown of pricing, see our guide to fix and flip hard money rates.
Rates are not the only line item. Plan for these:
- Origination points: usually 1-3% of the loan amount, paid at closing.
- Draw fees and inspections: commonly $150 to $400 per draw.
- Appraisal, title, and legal: plan on $3,000 to $6,000 combined for a typical Texas flip.
- Insurance: a builder’s risk or vacant-property policy during the rehab, which costs more in hail-prone and coastal parts of the state.
The Fed’s September rate hike did not move fixed-rate bridge pricing overnight, but new quotes are higher than they were in the spring. I covered the mechanics in our post on the Fed rate hike and commercial real estate loans.
Do Flips Still Pencil in Houston, Dallas, and San Antonio?
Barely, and only with discipline. According to ATTOM’s Q2 2026 Home Flipping Report, the typical flip nationally returned 21.5%, down from 27.6% a year earlier. Texas metros came in far below that average.
| Metro | Typical flip return, Q2 2026 |
|---|---|
| Houston | 3.7% |
| Austin | 2.8% |
| Dallas | 1.8% |
| San Antonio | -0.3% |
The supply side explains part of it. The Texas Real Estate Research Center’s September report shows statewide inventory at 5.5 months and a median price of $339,000, flat from a year ago. San Antonio carries 6.2 months of supply, the highest of the major metros. Houston, by contrast, just had its first July in a year without a year-over-year price decline.
Flat prices mean you cannot count on appreciation to rescue a thin deal. The profit has to come from buying at the right number.
What Does a Texas Flip Look Like on Paper?
Here is an illustration, not a quote. Say you buy a San Antonio house for $240,000, budget $60,000 for rehab, and expect an ARV of $360,000. A lender advances 85% of the purchase ($204,000) plus 100% of the rehab ($60,000), for a $264,000 loan, which is 73% of ARV.
Your costs over a 9-month hold at 11% interest with 2 points:
- Down payment on purchase: $36,000
- Points (2%): about $5,300
- Interest on the average drawn balance: about $19,300
- Taxes, insurance, and utilities: about $9,000
- Selling costs at roughly 7%: about $25,200
Add it up and total project cost is about $358,800 against a $360,000 sale. That deal makes about $1,200 and needs $46,000 of your own cash. It is why a 70% ARV rule is a ceiling and not a target in most Texas metros today.
From a recent deal: I recently worked with an investor in the Houston market on a 1970s ranch he had under contract at $285,000. His ARV came in near $430,000 and his rehab budget was $75,000. Once we ran carry and selling costs, the numbers only worked at a $255,000 purchase, so he renegotiated, closed, and sold in 7 months. The loan was fine. The lesson was that the purchase price was the whole deal.
Looking at a Texas flip? We structure these deals nationally. Schedule a 15-minute call →
What Do Lenders Require for a Texas Fix and Flip Loan?
The underwriting file is simpler than a bank loan, but lenders still want to see real experience and real numbers. Our guide to fix and flip loan requirements covers the full checklist. For Texas deals, expect to provide:
- A signed purchase contract and a scope of work with line-item budget.
- Proof of liquidity covering down payment, closing costs, and a few months of interest.
- A credit score of 660 or higher for most programs, and a track record of completed flips for the best leverage.
- A vested entity. Most Texas investors close in an LLC, which we break down in our post on fix and flip loans for LLCs.
First-time flippers are not shut out. Many programs fund first deals at lower leverage, or allow an experienced contractor or partner to carry the track-record requirement. I have placed first-time borrowers by pairing them with a general contractor who had a long history of finished projects.
How Do You Choose the Right Texas Market and Exit?
Start with the exit. If your plan is to sell, the buyer pool and days on market in that neighborhood decide your carrying cost. If your plan is to rent, a lender can take you out of the flip loan into a rental loan. That is the bridge to DSCR strategy, and Texas investors use it when sale margins are thin. Our Texas DSCR loan guide explains the rental side.
I tell investors to treat the second exit as a requirement. Build every flip so that you can rent it at a DSCR of 1.0 or better if the sale market stalls. We work with lenders that will refinance a finished flip within weeks of completion, and that backup plan is what keeps a slow quarter from turning into a loss. Our post on hard money loan exit strategies covers the options.
Frequently Asked Questions
How much down payment do I need for a fix and flip loan in Texas?
Most programs require 10-20% of the purchase price, plus closing costs and reserves. Experienced borrowers can reach 90% of purchase and 100% of rehab on the better programs.
Can I get a fix and flip loan with no experience in Texas?
Yes, a Texas fix and flip loan is available to first-timers, but with lower leverage or a partner who has experience. First-time flippers should expect a higher rate and a smaller rehab advance.
How fast can a Texas fix and flip loan close?
A Texas fix and flip loan with a clean file usually closes in 10 to 21 days. Delays almost always come from title, insurance, or an incomplete scope of work.
Are fix and flip loans available for out-of-state investors buying in Texas?
Yes. Lenders care about the property, the budget, and your liquidity, not where you live. Many of our Texas borrowers live in other states.
Ready to line up a Texas fix and flip loan?
We’re a commercial mortgage brokerage serving investors and developers nationally, with active lender relationships across fix and flip, bridge, and DSCR programs. Send us your scenario and we’ll respond within one business day with realistic terms.
This article is for informational purposes only and does not constitute financial, legal, or tax advice. Loan terms, rates, and availability vary by borrower, property, and market conditions. Consult Willowbrook Capital for scenario-specific guidance.