Texas Investment Property Loans

Investing in Real Estate in Texas

Texas continues to lead the nation in real estate investment potential. Strong job growth, business-friendly policies, and a steady stream of new residents create ongoing demand for rental properties throughout the state.

Texas welcomes over 395,000 new residents every year, creating steady demand for housing. Rental rates reflect this growth. If you’re considering an investment property loan in Austin, you should know the average rent is 2% higher than the national median, while Dallas maintains an occupancy rate of over 90%.

With a median home price of over $300,000, Texas offers investors better value than other high-growth states. Property investors are finding success across different strategies, from long-term rentals in Houston’s growing suburbs to short-term vacation rentals along South Padre Island.

The opportunities span every market segment. Corporate relocations drive demand for upscale rentals, while major universities create consistent student housing needs. Even the short-term rental market thrives as more people vacation in places like Austin, which offers world-class live music, well-regarded art museums, and a booming culinary scene.

Texas Investment Property Loan Types

Finding the right financing is crucial in Texas’s competitive market. Here’s a look at the available loans for investment property in Texas:

Conventional Loans

Conventional loans are the most well-known option. They require a 15-25% down payment and a minimum credit score of 680. Your down payment amount directly impacts your investment property mortgage rates in Texas, with larger down payments earning better terms.

Conventional loans work particularly well for single-family rentals and small multi-unit properties where you can document steady income. Many investors choose these loans for their predictable terms and competitive rental property mortgage rates in Texas, especially when purchasing in established neighborhoods with proven rental demand.

DSCR Loans

DSCR loans qualify borrowers based on the property’s rental income potential rather than your personal income. Typically, lenders like to see that your property generates at least enough rental income to repay the mortgage.

These rental property loans in Texas are especially valuable for investors targeting high-rent districts or expanding their portfolios beyond traditional lending limits. This option allows investors to scale their holdings while focusing on properties with strong income potential.

Bank Statement Loans

Bank statement loans are designed for self-employed investors and business owners and qualify borrowers using 12-24 months of bank statements instead of tax returns. Lenders typically want to see consistent monthly deposits totaling 3-4 times your proposed mortgage payment. This option provides a practical solution for investors who maximize tax deductions but maintain strong cash flow.

VA Loans

Military members and veterans can purchase investment properties using their VA benefits. VA loans allow you to purchase up to four units when the borrower occupies one unit. The competitive rates and reduced down payment requirements make VA loans an excellent entry point into real estate investing.

FHA Loans

With a down payment option as low as 3.5%, FHA loans offer an accessible path to property investment. These loans require owner occupancy but allow for the purchase of up to four units. This financing option works well in markets where property values remain under FHA limits, allowing investors to generate rental income while building equity.

Home Equity Loans

Home equity loans often provide better terms than direct investment property loans. Current homeowners can leverage their equity to fund investment purchases while maintaining their existing primary mortgage. This option typically offers lower rates and favorable terms for qualified borrowers.

Asset-Based Loans

These loans consider your liquid assets rather than traditional income for qualification. Lenders typically calculate 70-80% of your portfolio value when determining eligibility. Asset-based loans provide flexibility for investors with significant portfolios who prefer not to liquidate their investments for real estate purchases.

Private Money Loans

When traditional closing timelines don’t meet your needs, private money loans offer rapid funding — often within just a few business days. While these loans carry higher rates, the speed advantage can prove valuable in competitive markets or auction situations. This option works particularly well for time-sensitive purchases or properties requiring immediate renovation.

How to Get an Investment Property in Texas

Follow these three essential steps to begin your investment journey:

1. Determine how you want to invest: Your investment strategy will shape your financing options. Consider whether a multi-family property near an employment center, a single-family rental in a growing suburb, or a vacation rental property best matches your goals.
2. Identify the type of financing that aligns with your goals: Different properties require different loan approaches. Multi-unit properties often work well with FHA financing when you plan to occupy one unit, while pure investment properties might benefit from DSCR or conventional loans.
3. Find a property and apply for financing: Begin your property search with financing already arranged. We always recommend getting pre-approved to help you set your budget and show sellers you’re a serious buyer. Preparing all your paperwork before applying for the investment property loan can also speed up underwriting for a faster close. Use the Griffin Gold app to track potential investments, analyze important financial data, and organize your documents for a smoother loan process.

Why Choose Griffin Funding?

Choose an investment property lender Texas investors rely on. These factors set us apart:

• A lot of experience: Our lending team specializes in Texas investment property loans and understands the unique aspects of different markets throughout the state.
• Flexible solutions: We match you with the right loan program by considering your investment strategy, financial situation, and long-term goals.
• Personalized service: You’ll work with dedicated professionals who understand Texas real estate and guide you through each step of the financing process.
• Competitive rates: Our position as a direct lender allows us to offer competitive mortgage rates for investment properties in Texas.

Lock in a Competitive Mortgage Rate on a Texas Investment Property

Ready to secure financing for your investment property? Whether you’re purchasing your first rental property with an investment property loan in Houston or looking to refinance an investment property, our team will help you find the right loan solution. From rental property loans to specialized financing programs, we offer options that align with your investment strategy.

Apply now to start building your real estate portfolio.