Question 1

What do Lubbock permits actually add to a rehab budget?

Accepted Answer

Less than you'd think, but price your own scope rather than borrowing the new-build math. The city's published FY2025-26 fee schedule sets new single-family building permits at $0.15 per square foot and mechanical, electrical, and plumbing permits at $0.07 per square foot each, with a $75 minimum permit fee and a 200% penalty for working without one. Those are the new-construction rates. A rehab pulls whatever subset of permits the scope actually triggers, so get the line items priced by the city's building safety department before you bid, rather than assuming a per-square-foot number. Review times run days to weeks rather than months, on vendor reporting the city does not publish, so build schedule slack in either way. Then put the permit line into the rehab budget.

Question 2

How much does the ISD split change my property tax carry on a Lubbock flip?

Accepted Answer

By about 30 cents per $100 of value, and it depends on which side of a school district line the house sits. Every Lubbock County parcel pays a county-wide base of 0.430035 per $100 (county, the UMC hospital district, and a water district). Inside the city, Lubbock ISD parcels total 1.769426 per $100, versus 2.058926 in Frenship ISD and 2.069126 in Lubbock-Cooper ISD, both of which carry bond debt near their debt-service cap. On a $215,000 rehab-to-rental hold, that gap runs about $625 a year for identical city services. None of this gets a homestead exemption or the 10% appraisal cap, since the property is investment-use, and the 20% circuit breaker on non-homestead property expires December 31, 2026 and needs a full year of ownership to apply, which a purchase-rehab-sell inside a year never reaches. Confirm the ISD before you underwrite the hold, and talk to your CPA about your own situation.

Question 3

How much does hail insurance eat into a Lubbock flip's rehab budget and resale?

Accepted Answer

Enough that roof class is a line item, not an afterthought. Hail has been the number one Texas homeowners loss peril in nine of the last ten years, with $4.93 billion in paid losses in 2024 statewide, and large hail struck the Lubbock area in October 2023 during what Cotality called a record year for Texas hail losses. A Lubbock insurance agency reports that a Class 4 impact-resistant roof can be the single largest discount available on a policy, sometimes 20 to 30 percent, with roof age and type as primary rating variables. A 15-year-old composition roof is a carrying-cost and resale problem here; a hail-rated replacement is one of the few rehab items that shows up directly in the buyer's insurance quote at closing. Lubbock is roughly 300 miles inland, so there is no TWIA windstorm program and no coastal wind pool, just the standard market, where a 2% wind and hail deductible has become the common Texas standard. A county-level average premium was not published at a reliable figure as of this writing, so get real quotes on the specific address before you finalize the pro forma.

Question 4

What actually gates a Lubbock flip: the buy price or the exit?

Accepted Answer

The buy price, and Lubbock makes that side easier than most Texas metros. Metro mid-tier value is $214,267, and Slaton and Levelland stock sits under $150,000, both inside a 30-minute drive of Lubbock, Wolfforth and Idalou, where resale values run $213,000 to $268,000 and the buyer pool is deepest. That is a fraction of the capital a DFW or Austin flip requires. On the exit side, homes went under contract in a median of 46 days in July 2026, down from 49 a year earlier and faster than the Texas statewide average of 65 days, with active listings down more than 10% year over year, so the resale leg is not carrying the risk it would in a slower market. Run your specific numbers on the fix and flip calculator before you commit capital.

Question 5

Is there a published Lubbock flip rate or ROI I can underwrite to?

Accepted Answer

No, and be wary of anyone quoting you one. ATTOM's flipping reports name large metros only, and Lubbock does not appear in the accessible Q1 2026 or year-end 2025 releases, so there is no Lubbock-specific flip volume, margin or ROI figure to cite. What is sourced is the statewide picture: Texas flipped 9.9% of first-quarter 2026 sales, 6,367 flips, at a 5.6% gross ROI, a high-volume, thin-spread market where deals win on basis and speed rather than margin, and that gross figure excludes rehab, carry and financing before you even get to a Lubbock address. The Lubbock-specific case is the entry price and the exit speed covered above, not a citywide flip statistic. Send us the deal and we will underwrite it on its own numbers.

Question 6

How much of my fix and flip deal will USA Mortgage finance?

Accepted Answer

We fund up to 90% of the purchase price and up to 100% of your rehab budget, with the total capped against the after-repair value (ARV). Rehab money is released in draws as the work is completed.

Question 7

What interest rate and points should I expect on a flip loan?

Accepted Answer

Our fix and flip pricing starts around 9.99%, interest-only, with origination typically 1 to 3 points depending on your experience, leverage, and the deal, and every quote is subject to underwriting. Across the market most flip loans run roughly 9% to 12%. On most flip loans, including ours, interest is charged on the full loan amount, rehab budget included. Paying interest only on rehab funds as you draw them exists in the market, but it is the exception, not the rule.

Question 8

Do I need flipping experience to qualify?

Accepted Answer

No. We work with first-time flippers as well as full-time operators. Experience mainly affects your leverage and rate, since a longer track record earns higher loan-to-cost and better pricing. A newer investor can still get funded with a sound deal, a realistic budget, and a clear exit.

Question 9

How fast can a fix and flip loan close?

Accepted Answer

We can get you a term sheet the same day on a complete application, and we typically fund within 48 hours of clear title. The main variable is how fast title and insurance come together, which is why a full close usually runs 5 to 7 days. Because we are the lender and underwrite in house, there is no second layer of approval to wait on.

Question 10

Is there a prepayment penalty if I sell quickly?

Accepted Answer

No. Our fix and flip loans have no prepayment penalty, so paying off early when the property sells costs you nothing extra. Terms run 6 months, and because there is no penalty, selling sooner never costs you extra.

Question 11

Do you check credit or require income documents?

Accepted Answer

We run credit, but this is an asset-based loan, so the property, your budget, and the ARV matter most. We do not ask for W-2s or tax returns to qualify a flip. We will want to confirm you have reserves to carry the project to its exit.

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