Texas · Build-for-Rent
Texas build-for-rent financing.
Ground-up construction for communities of rental houses, duplexes, fourplexes and townhomes, then a DSCR take-out once the homes are leased. Up to 85% of cost during the build, interest only on drawn funds, $1M to $5M.
By David Hodara · ·
85% LTC
Construction
80% LTV
DSCR take-out
$1M-$5M
Loan range
24-48h
Term sheet
Texas build-for-rent market context
Texas metros carry some of the largest build-to-rent pipelines in the US. In May 2026 RealPage counted about 3,700 build-to-rent units under construction in Dallas-Fort Worth, second only to Phoenix, about 3,000 in Houston and about 1,700 each in Austin and San Antonio. Most of it sits in the suburban rings, where new subdivisions supply the lots.
Build-for-rent is two loans in sequence, and files get stuck when only the first is arranged. During construction it is judged on budget, contractor and schedule; after delivery it is a rental portfolio judged on rent. We line up the DSCR take-out (up to 80% LTV) before the first draw, so the construction loan's maturity is not the moment the question gets asked. A bridge loan up to 80% of value can fund the land first.
Phasing is what makes a Texas BTR project work at this size: the first houses lease while the last are still being built, which keeps interest carry down and gives the take-out a real rent roll. Property tax on the finished houses is reassessed, many subdivisions add a municipal utility district tax, and both belong in the DSCR from day one.
Non-US investors build to rent in Texas on the same terms as US investors, through a US LLC and without a US credit history.
Typical loan products for Texas build-for-rent
Each deal gets routed to the product structure that fits. Most build-for-rent deals in Texas use one of the following.
Construction loans
Ground-up financing for spec houses, small residential buildings and build-to-rent, up to 85% of cost, interest only on the drawn balance, draws against inspected work.
Bridge loans
Lot or land acquisition while permits and horizontal work are finished, ahead of the first construction draw.
DSCR loans
The hold or the exit: long-term financing qualified on the property's rent rather than personal income, up to 80% LTV.
Buying Texas build-for-rent from outside the US
We finance build-for-rent in Texas for investors based outside the United States as readily as for US borrowers. The loan is made to a US LLC rather than to an individual, which keeps it business-purpose, and the underwriting looks at the property rather than at a US credit profile a non-resident has no way to build.
That means no US credit history, no US income documents, no foreign-national rate premium, and no requirement to travel to the United States to close. If you do not yet have the entity, forming one is a step in the process rather than a prerequisite you have to solve alone.
Top Texas markets we actively fund
We work build-for-rent deals across Texas, with deepest lender relationships in the metros below.
Texas build-for-rent FAQ
Who finances build-for-rent projects under $5M?
We do, as a construction loan up to 85% of cost with a DSCR take-out arranged before the build starts. Under $5M is a size institutional programs often skip.
Is a BTR project financed as construction or as a rental portfolio?
Both, in sequence: construction financing during the build, drawn against inspected work, then a DSCR refinance on the leased homes.
What kinds of homes count as build-for-rent?
Detached houses, duplexes, fourplexes and townhomes built to rent, as well as small buildings up to nine units. Larger apartment projects are placed through our capital-partner network.
How many homes does a project need?
It works from a handful upward, within the $1M to $5M range. With only a few houses, individual spec builds with individual exits can be simpler.
What does the financing cost upfront?
Nothing. There are no upfront fees. Our fee is 1 to 2% of the loan, paid at closing, and the rate is set on the term sheet by leverage, the business plan and the sponsor's completed projects.
Can a foreign national finance build-for-rent in Texas?
Yes. We lend to a US LLC rather than to an individual, and we underwrite the property rather than a US credit profile, so a non-resident with no US credit history and no US income documents borrows on the same terms a US investor receives. You do not have to travel to the United States to close.
Got a Texas build-for-rent deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose investment property financing only.