Texas · Multifamily
Texas multifamily financing.
Bridge, construction, renovation, and stabilized debt for apartment buildings across Dallas-Fort Worth, Houston, Austin, and San Antonio. Business-purpose financing from $1M to $5M for everything from value-add Class B/C to ground-up Class A.
By David Hodara ·
4+
Active metros
$1M-$5M
Loan range
30K+ units
DFW annual deliveries
7-10 days
Typical bridge close
Texas multifamily market context
Texas is the largest multifamily new-supply market in the US, with Dallas-Fort Worth alone delivering 30,000+ units annually. The Sun Belt growth story has pushed permits, deliveries, and absorption to record levels, but the pipeline has also created near-term lease-up pressure in Austin and parts of DFW.
Underwriting in Texas multifamily centers on supply absorption (new deliveries per submarket vs population growth), property tax volatility (Texas has no state income tax but high property tax with annual reappraisal), and insurance cost (rising similar to Florida, though typically lower than coastal FL). Lease-up risk and lender stress testing for concessions are major underwriting inputs.
Typical loan products for Texas multifamily
Each deal gets routed to the product structure that fits. Most multifamily deals in Texas use one of the following.
Bridge loans
Short-term financing to acquire, reposition, or stabilize an apartment building before refinancing into permanent debt. 7-10 day close, 8-12% IO, up to 80% LTV.
Construction loans
Ground-up multifamily development financing with draw schedule tied to milestones. Up to 85% LTC, 12-24 month terms.
Renovation loans
Acquisition + rehab in a single facility for value-add multifamily. Up to 90% of purchase price and 100% of rehab cost.
Buying Texas multifamily from outside the US
We finance multifamily 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 multifamily deals across Texas, with deepest lender relationships in the metros below.
Texas multifamily FAQ
How do Texas property taxes affect multifamily underwriting?
Texas has no state income tax but among the highest property tax rates in the country, and reappraisals are annual. Lenders typically underwrite using stressed tax assumptions (current assessed value + 10-15% growth assumption) and require operators to factor likely reappraisal increases into year-2+ NOI projections.
Is Austin still a financeable multifamily market?
Yes, but with caution. Austin's record supply pipeline has pushed concessions higher and absorption lower. Lenders are pricing for additional lease-up risk and stressing rent growth assumptions. Class A new construction is the most heavily impacted; value-add Class B/C still pencils with appropriate underwriting.
What's typical bridge leverage on Texas multifamily?
75-80% LTV on stabilized acquisitions, 70-75% on value-add. Construction tops out at 80-85% LTC for experienced developers with strong submarket execution. Pricing varies meaningfully by submarket and sponsor track record.
How does insurance cost compare in Texas vs Florida multifamily?
Texas insurance has risen significantly but typically remains lower than coastal Florida. Houston coastal exposure is the closest analog to FL coastal counties; inland TX (DFW, Austin, San Antonio) has milder insurance market dynamics but is still trending up year-over-year.
Can a foreign national finance multifamily 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 can borrow on the same terms a US borrower receives. There is no foreign-national rate premium, and you do not have to travel to the United States to close. The structure is the same in Texas as in every other state.
Got a Texas multifamily deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose CRE financing only.