Texas Home Loans
Updated: April 2026 ● Todd Orlando
The Lone Star State doesn’t need a sales pitch. What it needs is a lender who actually knows the market. At Defy Mortgage, we originate Texas home loans and actively lend across the state every day. Our underwriting team evaluates Texas rental income, property taxes, and DSCR thresholds across hundreds of investor scenarios in real time — we know what deals are closing because we’re closing them. From Dallas–Fort Worth to Houston to Austin to San Antonio, we bring the full lineup: DSCR, bank statement, P&L, asset depletion, foreign national, FHA, VA and more.
First-time buyer, seasoned investor, or self-employed borrower whose income doesn’t fit a W-2 — we have a loan for your situation. Texas is one of the best states in the country to build wealth through real estate. Let’s get you into it.
Cities in Texas We Serve
Whether you’re looking to purchase a home in the city or out in the country, Defy Mortgage can help you purchase or refinance a home with the right loan for you. As the second-largest state in the U.S., you have plenty of places to choose from when buying a home in Texas. Fortunately, we serve buyers throughout the Lone Star State, including the following areas:
- Houston
- San Antonio
- Austin
- Dallas
- El Paso
- Fort Worth
- Arlington
- Plano
- Laredo
- Corpus Christi
- San Angelo and more!
Home Loans Offered In Texas
At Defy Mortgage, we are fully licensed in the state of Texas, which means that we can provide all purchase and refinance Non-QM and Traditional loans, including:
- DSCR Loans
- Bank Statement Loans
- P&L Loans
- Interest-Only
- Foreign National
- Asset Depletion
- Cash-Out Refinances
How Do Home Loans Work In Texas
Texas home values aren’t waiting for you to feel ready — and neither is the market. If a traditional mortgage has told you no, that’s not the end of the conversation. It’s the beginning of a different one. Non-QM loans exist precisely for borrowers who don’t fit the conventional mold, and at Defy Mortgage, that’s our specialty. Here’s what lenders are actually looking at when you apply:
Texas Home Loan Requirements
- Credit Score
- Income
- DTI (ie: what you owe vs. what you earn)
- Assets
- The type of mortgage you’re applying for
Keep in mind that this doesn’t include things like down payment requirements which impact LTV for purchasing and refinancing; however, these are the home loan requirements in Texas that you’ll typically need to meet. They are the same across all 50 states unless otherwise noted by the lender.
Steps for Getting A Home Loan in Texas
- Step 1: Assess your finances — know your credit score, DTI, and how much you have saved for a down payment and closing costs (budget 2%–5% of the purchase price for closing costs alone).
- Step 3: Get pre-approved — this is important so you know exactly what you can afford and sellers take you seriously.
- Step 4: Find your property and make an offer — identify if the property you are looking for is an investment property, vacation home or primary. Once you identify this, find a property in your price range, make an offer and see what they say.
- Step 5: Submit your full loan application — and please, respond to document requests quickly to avoid delays. Make sure you have all the required documentation, as the documentation requirements vary by loan type.
- Step 6: Get through inspection, appraisal, and underwriting — don’t skip these as the can impact your costs down the line. Speak with your lender about your options if you have questions.
- Step 7: Close on your home — sign the documents, and get your keys. Start to finish, the process typically takes 30–45 days from accepted offer to closing but that timeframe varies from lender to lender. For us at Defy Mortgage, for example, we can close faster.
Texas Cash-Out Refinance for Homeowners
Rising property values in Austin, Dallas, and Houston have quietly made Texas one of the strongest cash-out refinance cash-out refinance markets in the country. After a pullback in 2023, home values in these metros have bounced back over the last 3 years — and homeowners who stayed the course are sitting on substantial equity in 2026 and high borrowing limits as a result. That means more flexibility to fund renovations, cover major expenses, launch a business, or pursue any goal that requires real capital. And because Cash-out rates at Defy are fixed, which lets borrowers lock in today and plan around a predictable payment significantly compared to personal loans or credit cards.
Texas Capital Gains Tax
Texas has no state capital gains tax and for real estate investors, that’s a significant advantage. Whether you’re selling a Dallas rental condo or a vacation property on Galveston Island, your tax exposure stops at the federal level. What you owe the IRS depends on how long you’ve held the property, your income bracket, your cost basis, and any depreciation recapture from prior years, but Texas takes nothing on top of that.
That said, the no-tax status isn’t permanently locked in by law… yet. Texas Proposition 2, which appeared on the November 2025 ballot, proposed a constitutional amendment that would explicitly prohibit Texas from ever imposing a capital gains tax on individuals, estates, or trusts. If passed, it would permanently close the door on any future legislature attempting to change that. Either way, Texas remains one of the most tax-efficient states in the country for real estate investment — and that’s not changing anytime soon.
More on Capital Gains Tax in Texas→
Texas Home Loans For Real Estate Investors
Texas property owners who aren’t handing money to the state on every sale have more capital to deploy: into the next acquisition, into paying down existing debt faster, or into renovations that drive rent increases and appreciation. The compounding effect of that advantage over a multi-property portfolio is significant. And when you’re ready to scale, Defy’s DSCR loans have no hard cap on the number of properties you can finance — meaning your portfolio grows at your pace, not a lender’s arbitrary limit.
For real estate investors, Texas remains one of the top states for rental property investment due to its booming economy, rapid population growth, and business-friendly environment. Texas’ economy is so strong, in fact, that if it was a country, it would be the 8th largest in the world.
Low cost of living. No state income tax. Texas draws renters and investors for the same reasons, and that alignment between supply-side incentives and renter demand is exactly what makes the market work long-term.
Types of Texas Investment Property Loans include:
- Residential Investment Property Loans: Specifically designed for single-family homes, condos, townhomes, and other residential properties that investors intend to rent out. These loan options tend to be similar to traditional residential loans.
- Commercial Investment Property Loans: Include buildings such as offices, retail spaces, and warehouses. These properties are used with the intention of conducting business. Commercial loans can cater to many property purposes. Profit potential and investor history are considerable factors for commercial loans.
- Land Investment Property Loans: Pertinent to raw land or land development. Many lenders want to see a solid development plan for the land.
Texas Mortgage Programs 2026
As of April 2026, Defy Mortgage offers the following non-QM and traditional mortgage programs to those looking to purchase or refinance properties in the state of Texas. You have options if you are a first-time homebuyer, seasoned investor, or someone looking to refinance, or self-employed. For specific licensing information, please visit our State Licensing Page.
For real estate investors looking to purchase or refinance. Our DSCR loans in Texas offer flexible financing options for real estate investors in Texas, whether seasoned or novice. Instead of digging through your personal income history or tax return which probably have write-offs, lenders look at one thing: whether your property generates enough cash from rent to cover its own debt. That ratio, your debt service coverage ratio or DTI, is what gets you qualified. It’s that simple.
- Up to 85% LTV purchase SFR (most lenders only go up to 80%)
- No hard maximum loan limit
- DSCR options down to 0.75 minimum
- Min FICO as low as 640 (most lenders have a 660 min!)
Empire builders like the self-employed and business owners simply don’t have time for red tape and no’s because of no W2s or tax returns. Our P&L statement program in Texas is designed for exactly that — speed, power, and a direct line to funding. No bureaucratic nonsense. Just the flexibility and firepower to get you where you’re going.
- Up to 90% LTV purchase & R/T refi
- No hard maximum loan limit
- Single Family, Condo, Co-ops and Condotels
- Min FICO as low as 640
Texas has more small business owners, independent contractors, and self-employed operators per capita than almost anywhere in the country. Traditional lenders weren’t built for any of them — bank statement loans were. In Texas, 12 or 24 months of bank records replace W-2s and tax returns entirely, giving entrepreneurs and independent workers a direct path to financing that reflects how they actually make money. Our Bank Statement loans in Texas flex however you need them to. Less red tape, alternative income documentation, lower down payments and endless possibilities.
- Up to 90% LTV Purchase & R/T Refi (most lenders stop at 85%, not us!)
- No hard maximum loan limit
- Primary, Second Home and Investments
- Min FICO as low as 640
Not every Texas borrower fits into a standard amortization box — and interest-only loans exist for exactly that reason. Pay only the interest for a fixed period, keep more cash liquid, and put it to work however your business or investment strategy demands. Refinance when the IO period ends, pay it down, or convert to regular payments. Interest-Only loans in Texas are perfect for contractors, entrepreneurs, business owners, and high earners expecting income growth.
- No principal paydown during the IO period
- Pay off your mortgage as you see fit (yes, really)
- IO periods of 5, 7, or 10 years
- Options for purchase, RT refi and cash-out
Asset Depletion loans in Texas are just as flexible as any other non-QM loan, but with different requirements. They make a great option for high-net-worth, self-employed, or retired individuals with substantial liquid assets looking to purchase or refinance. The key term here is liquid assets!
- Up to 80% Loan to Value (LTV)
- No hard maximum loan limit
- Min FICO score down to 640
- Primary & second home
Texas doesn’t care where you’re from. Neither do we. If you’re a non-US citizen looking to purchase or refinance an investment property or second home in the Lone Star State, Defy Mortgage funds it — no US credit score required, no Social Security number needed, no domestic income documentation standing in your way. Our foreign national loan program was built for international investors
- Up to 70% LTV Purchase & R/T Refi
- Up to $3M Max Loan Amount
- No FICO score required (with alternative credit options)
- DSCR loan or foreign income options
We offer cash-out refinance loans for all of our Non-QM loan options listed above. Cash out refinancing allows homeowners to replace their current mortgage loan with a new one for more than they still owe, using the difference in cash. Cash out refinance Texas is particularly advantageous because of the state’s steadily climbing property values.
Explore Cash-Out Refinancing Regulations in Texas →
| Program | Income Documentation | Max LTV | Min FICO | Best For |
|---|---|---|---|---|
| DSCR Cash-Out | Rental income (no personal income required) | 80% | 640 | Real estate investors |
| Bank Statement Cash-Out | 12–24 months bank deposits | 80% | 640 | Self-employed borrowers |
| P&L Cash-Out | CPA-prepared P&L statement | 80% | 640 | Business owners with write-offs |
| Asset Depletion Cash-Out | Liquid assets | 75% | 640 | High-net-worth, retired borrowers |
| Foreign National Cash-Out | Alternative credit | 65% | Not required | International property owners |
Current Non-QM Rates in Texas by Loan Type
Example rate ranges shown for a 740 FICO borrower at standard LTV in Texas. Actual rates vary based on borrower profile, points, reserves, property type, and market conditions. These reflect current rate indications from Defy Mortgage for typical borrower scenarios.
| Loan Type | Purchase Rate | Refi Rate | Standard LTV | Notes |
|---|---|---|---|---|
| DSCR Loan | 6.000% | 6.125% | 75% | Qualifies on property cash flow, min 0.75 DSCR |
| Bank Statement (Personal or Business) | 6.250% | 6.250% | 75% | 12–24 months statements |
| P&L Loan | 6.500% | 6.625% | 75% | CPA-prepared P&L accepted |
| Asset Depletion | 6.250% | 6.250% | 75% | Qualify on liquid assets, no income docs required |
| Foreign National DSCR | 6.750% | 6.750% | 70% | No US FICO required |
Interest-only option: Available on all products above. Add approximately 0.25% to the applicable rate.
Example rates shown are not a commitment to lend and do not include discount points, fees, or APR. These rates are for Texas only.
Buying a Home In Texas
The mortgage process in Texas works the same way it does everywhere else in the country, and with a lender who structures loans around your situation rather than forcing your situation into a box, it’s more straightforward than most people expect. Here’s what you need to know going in.
Average Cost of a Home in Texas
In March 2026, the median home sale price in Texas was $342,400, down 1.6% compared to last year. With 10+ months of supply and homes averaging over 100 days on market, buyers have more time and negotiating power than they’ve had in years. There were 171,052 homes for sale across the state, and only 12.8% of homes sold above list price. Markets vary significantly — Austin’s average home value sits around $494,727, while Houston remains the most affordable major metro entry point at $260,000–$324,000 depending on the data source, and Dallas tracks around $301,000–$375,000.
The bottom line: Texas is a buyer’s market in 2026. Use it.
As you plan your purchase, keep in mind that the total cost of homeownership in Texas goes beyond the sale price. Factor in:
- Closing costs
- Down payment
- Monthly mortgage payment
- Homeowner’s Association (HOA) fees
- Maintenance and repairs
- Homeowners and flood insurance
- Property taxes
Texas has no state income tax but property tax rates are among the highest in the country, averaging 1.6%–2.0% of assessed value depending on county.
Average Down Payment For a Home in Texas
Despite Texas’s larger-than-life reputation, the average down payment Texas homebuyers put down is modest, ranging from 5% to 6% — reflecting the state’s relatively affordable home prices compared to coastal markets. Rate According to the National Association of Realtors, the average down payment for first-time buyers is just 6%, while repeat buyers tend to put down around 17%. AsertaLoans
On a $342,400 home — Texas’s current median — that looks like this in real numbers: 3% down is roughly $10,272, 5% down is $17,120, and the traditional 20% benchmark comes to $68,480. Most Texas buyers aren’t anywhere near that top number.
Conventional loans require as little as 3% to 5%, FHA loans require 3.5% with a 580 or higher credit score, and VA and USDA loans offer zero-down options for eligible buyers. Texas also offers over 15 down payment assistance programs including My First Texas Home, which provides up to $30,000 in grant funds that don’t need to be repaid, and Homes for Texas Heroes for teachers, nurses, firefighters, and veterans. Mortgage Info
One thing that won’t change regardless of your down payment: closing costs. Budget an additional 2%–5% of the purchase price on top of your down payment and factor it in early. On a $342,400 purchase that’s another $6,800–$17,120 out of pocket at closing.
At Defy Mortgage, we offer Non-QM down payment options as low as 10% depending on borrower criteria and loan type. If you have questions about down payments in Texas — especially as a real estate investor — just ask.
Texas Real Estate Market Overview
Texas’s real estate market is one of the most investor-friendly in the country — driven by Dallas–Fort Worth’s corporate dominance, Houston’s affordability and energy economy, Austin’s tech-fueled long-term appreciation, and San Antonio’s steady, military-anchored rental demand. The Texas economy expanded to $2.77 trillion in 2024 and grew faster than the national average, with Texas leading all states in jobs added from January 2025 to January 2026 — gaining 112,200 positions. No state income tax, no capital gains tax, and one of the most landlord-friendly legal environments in the country make Texas a structural advantage for investors building long-term wealth.
Dallas–Fort Worth: Dallas has the underlying fundamentals for market recovery — strong job growth, consistent population inflow, and a diversified economy not dependent on any single sector. Major Fortune 500 companies including AT&T, Southwest Airlines, and Texas Instruments anchor the region and attract a steady influx of professionals seeking rental housing. Dallas alone added an estimated 40,000–50,000 jobs in the past year. For investors, the current market correction — with Dallas recording the steepest year-over-year price decline among major Texas metros at around -4.1% — represents one of the best DSCR acquisition windows the market has offered since before the pandemic. Submarket variation is high — research at the zip code level before committing.
Houston: If Austin is the cautionary tale and Dallas is the complicated middle, the Houston housing market in 2026 is the relative bright spot among Texas’s major metros — one of the few large cities in the state posting positive year-over-year price trends. According to the Houston Association of Realtors’ March 2026 Housing Market Update, single-family home sales rose 3.7% year over year, with pending sales up 12.8% — a sign of continued buyer demand as the spring homebuying season gets underway. With a median price around $330,000 and strong rental demand, Houston remains the most accessible entry point for DSCR investors among Texas’s major metros.
Austin: Austin’s post-pandemic correction has created the most favorable buyer and investor conditions the market has seen in years. The median home price reached $426,220 in March 2026 — the lowest March median since 2021 — while pending sales climbed 15.4%, reflecting increased buyer activity and forward-looking demand. Analysts project steady rent growth and gradual price stabilization, making Austin a compelling option for investors focused on long-term appreciation, student housing, and high-demand STRs. DSCR loans using AirDNA-based STR income projections are increasingly common here for investors targeting South Congress, East Austin, and the broader Central Texas corridor.
San Antonio: San Antonio’s real estate market is expected to stay stable through 2026, with modest price appreciation and growing buyer activity. Rising inventory and shifting market dynamics are creating more opportunities, particularly in higher-end properties. The city’s large and permanent military population — anchored by Joint Base San Antonio, one of the largest military installations in the world — creates structural rental demand that doesn’t evaporate with economic cycles. San Antonio continues to benefit from relatively lower median home prices, which supports steady buyer demand and gradual price appreciation. For DSCR investors focused on consistent cash flow over appreciation, San Antonio is one of the most defensible long-term holds in Texas.
Hill Country / Short-Term Rental Markets: The Texas Hill Country — anchored by Fredericksburg, Wimberley, Marble Falls, and New Braunfels — has emerged as one of the strongest STR markets in the South Central United States. Wine tourism, proximity to Austin and San Antonio, and a distinct regional identity drive year-round occupancy that supports strong AirDNA income projections for DSCR qualification. For first-time and experienced STR investors alike, Hill Country offers cash flow potential that rivals markets twice its size.
Statewide investor advantage: No personal income tax, no state capital gains tax, and no state estate tax make Texas one of the most wealth-preserving states in the country for real estate investors. Texas’s population has expanded 24% since 2010, with employment growing 39% over the same period — outpacing the nation significantly. Combined with a landlord-friendly legal environment, a diversified economy spanning energy, technology, healthcare, finance, and logistics, and one of the largest and fastest-growing population bases in the U.S., Texas offers a rare combination of cash flow potential, appreciation upside, and tax efficiency.
Economic context for buyers and investors:
- Texas is America’s number one jobs creator, gaining 112,200 jobs from January 2025 to January 2026 and leading all states
- Texas real GDP grew an annualized 2.6% and the state is poised to capture a significant share of the AI-driven data center construction boom in 2026
- The unemployment rate sits at 4.4%, with business sentiment surveys indicating labor market optimism in the coming months
Why Defy Mortgage For Texas Home Loans
Defy Mortgage is one of the few direct Non-QM lenders operating in Texas — in-house underwriting, in-house funding, no middlemen. Our DSCR program runs at a 0.75 minimum — one of the most flexible thresholds available — specifically accounting for Texas’s property tax compression environment and Austin’s appreciation-driven market dynamics where traditional cash flow metrics don’t always apply. We lend up to 85% LTV on SFR purchase, higher leverage than most Texas DSCR lenders will offer.
And the Military market? We know it. San Antonio’s JBSA rental ecosystem, BAH lease structures, the occupancy stability that military demand creates — our team has closed it. STR investor? We accept AirDNA-based income for DSCR qualification, and first-time STR investors are eligible. Hill Country cabins, Austin vacation rentals, Fredericksburg wine country properties — we’ve funded them.
Most loans close in 14 to 21 days. Not because we rush but because we don’t require income documentation to slow the file down. Let’s make moves.
More Information On Texas Lending
Texas Home Loan FAQs
What Texas home loans can I get?
Most home loan options are available depending upon your lender of choice in the state of Texas. At Defy Mortgage, we are fully licensed in the state of Texas, which means that we can provide all purchase and refinance Non-QM and Traditional loans, including:
- DSCR Loans
- Bank Statement Loans
- P&L Loans
- Interest-Only
- Foreign National
- Asset Depletion
- Cash-Out Refinances
What credit score do I need to get a home loan in Texas?
It depends on the loan type. FHA loans can go as low as 580 with a 3.5% down payment. Conventional loans typically require a 620 or higher. Non-QM products like bank statement and DSCR loans have more flexible requirements. The short answer: don't count yourself out before talking to us. Most of our loan options permit credit scores down to 640.
What is a DSCR loan and is it available in Texas?
Yes. DSCR loans in Texas allow real estate investors to qualify using rental income instead of personal income. Most lenders require a DSCR of 1.0, though some go as low as 0.75 with up to 85% LTV — no W-2s, tax returns, or personal income verification required. The best DSCR loan options in Texas depend on factors like minimum DSCR requirements, loan-to-value (LTV), property type, and how Texas's high property tax rates affect your DSCR calculation.
What are the key underwriting factors for DSCR loans in Texas?
Key DSCR Underwriting Factors in Texas:
- DSCR (Debt Service Coverage Ratio) — rental income ÷ PITIA; the primary qualification metric
- PITIA (Principal, Interest, Taxes, Insurance, HOA) — Texas property taxes make this higher than most states
- LTV (Loan-to-Value) — maximum leverage available; 85% at Defy vs. 80% market standard
- NOI (Net Operating Income) — rental income before debt service; the numerator in the DSCR formula
DSCR loan programs in Texas vary by lender, but most follow similar underwriting principles centered on rental income, DSCR thresholds, and property-level cash flow.
Can I get a home loan in Texas if I'm self-employed?
Yes! Self-employed in Texas and tired of being told you don't qualify? That's a lender problem, not an income problem. Defy Mortgage uses 12 or 24 months of bank statements in place of W-2s and tax returns — qualifying you on what actually hits your account, not what a traditional underwriter wants to see on a pay stub. Texas runs on entrepreneurs. Your lender should be able to keep up.
How long does it take to close a home loan in Texas with Defy Mortgage?
Most loans close in 14 to 21 days. At Defy Mortgage, we originate, underwrite, and fund in-house, which eliminates the delays that come with third-party lenders. The timeline is driven by appraisal and title — not stacks of income documentation slowing your file down.
What is the average home price in Texas?
The average home price in Texas sits around $342,400 as of March 2026 — significantly more affordable than coastal markets like California and New York, and one of the key reasons capital keeps flowing into the Lone Star State. That statewide number tells only part of the story though. Austin's median sits at $426,220, its lowest point since 2021 and a genuine entry opportunity for buyers who've been priced out for years. Dallas tracks around $375,000 after recording the steepest correction among major Texas metros. Houston remains the most accessible large-market entry point at $330,000, while San Antonio holds steady around $265,000 with modest appreciation expected through the year. The takeaway: Texas is affordable at the statewide level, and in 2026, even its most expensive metros are offering buyers and investors more room to move than they've seen since before the pandemic.
Does Defy Mortgage lend in my area of Texas?
Yes. Defy Mortgage lends across all of Texas — Dallas, Houston, Austin, San Antonio, Fort Worth, El Paso, Lubbock, Waco, Corpus Christi, the Rio Grande Valley, the Hill Country, and everywhere in between. If you're buying, refinancing, or investing anywhere in the Lone Star State, we're already there. Send us your scenario and we'll tell you exactly what you qualify for.
What is Texas a state with a strong DSCR market?
- No state income tax — Texas's tax structure reinforces net return advantage for investors; rental income is not subject to state-level taxation, improving cash-on-cash yields relative to comparable markets
- Corporate relocation engine — Texas has attracted the headquarters or significant operations of Tesla, Oracle, Hewlett Packard Enterprise, Charles Schwab, and dozens of other major employers over the past five years, driving sustained professional-grade rental demand across Dallas-Fort Worth, Austin, and Houston
- Population growth — based on recent migration data, four Texas metros (Dallas-Fort Worth, Houston, Austin, San Antonio) rank among the top 10 fastest-growing large metros in the United States
- Military installations — Joint Base San Antonio (JBSA) is the largest military installation in the United States by personnel, generating stable BAH-backed rental demand across the San Antonio metro
- STR market depth — Fredericksburg, South Padre Island, Lake Travis, and the Texas Hill Country produce strong vacation rental demand; Austin's entertainment and SXSW/ACL tourism drives significant urban STR revenue
How can I get the best mortgage rate in Texas?
The best Texas mortgage rate doesn't go to the borrower who waits — it goes to the borrower who prepares. Your credit score, DTI, down payment, loan type, and property all factor into your rate, and each one is a lever you can pull before you apply. Get your debt under control, shore up your credit, put more down if you can, and make sure you're in the right loan product for your scenario — because a DSCR loan, a bank statement loan, and a conventional mortgage all price completely differently. At Defy Mortgage, we don't just hand you a rate — we show you what your profile looks like, where it can improve, and how to get to the best number available for your Texas deal.
Can you buy a house in Texas without a down payment?
Yes, and two paths get you there. VA loans offer zero down payment for eligible active-duty service members, veterans, and surviving spouses, making them one of the most valuable financing tools in a state with as large a military presence as Texas. USDA loans offer the same zero-down benefit for buyers purchasing in eligible rural and suburban areas, however, we do not offer USDA loans at Defy Mortgage.
What are the Texas specific regulations for cash-out refinance?
Texas cash out refinance is subject to the same regulations as HELOCs and home equity loans in the state. Keep these regulations in mind if you’re looking to cash out refinance your home:
- 80% Loan-to-Value Rule: Texas law enforces a hard borrowing limit of 80% of your home’s market value. Some states allow up to 90% LTV, but Texas prevents homeowners from borrowing against the last 20% of their stake in the home so it can serve as a safety net.
- Waiting Period Between Refinances: According to Section 50(a)(6)(M)(iii) of the Texas Constitution, homeowners must wait at least 12 months after closing a cash out refinance before they can refinance their properties again, whether through another cash out refinance or another type of refinance.
- Other Waiting Periods: Those who have experienced foreclosure, bankruptcy, or a short sale must wait a certain number of years before qualifying for a cash out refinance in Texas. The waiting period for foreclosure is seven years, while it’s four years for bankruptcy and short sale.
- 2 Percent Rule: Lenders can only charge up to 2% of the loan’s amount in closing fees. However, this does not include external fees like attorney costs, appraisal, and title insurance.
Note that these rules only apply to your primary residence. Cash out refinancing an investment property or second home will not be subject to these regulations.
Example rates shown are not a commitment to lend and do not include discount points, fees, or APR. Rates current as of April 2026 and subject to change based on market conditions, borrower profile, and property details. Programs, guidelines, and availability may vary by state. All rate information on this page is specific to the state of Texas.
Author: Todd Orlando, Co-Founder & CEO of Defy Mortgage — 25 years of experience in Non-QM and investment property lending.
