Question 1

Does a McAllen flip still pencil at these prices?

Accepted Answer

The basis is the cheapest of any large U.S. metro, and that is the point. Zillow's mid-tier single-family value for the McAllen MSA was $195,624 in June 2026, the lowest of the 100 largest metros in its home value index, against $375,094 nationally, and the market is flat rather than crashing (+0.4% year over year). Median list price has come down to $260,000 in July 2026, days on market have stretched to 81, and active listings are up 9.7% year over year, so buyers have room to negotiate the purchase. No McAllen-metro-specific flip rate or gross margin figure is published, so run your own numbers on the fix and flip calculator rather than assume a statewide or national margin applies here.

Question 2

What do rehab permits and fees run in the City of McAllen?

Accepted Answer

We don't have a verified City of McAllen fee schedule, so build the budget off the permit office's own numbers. The only published figures we found came from a single construction company rather than the city, and they cover new construction rather than rehab scope, so we're not repeating them here as though they applied to your job. Call the McAllen permit office, or Edinburg's or Mission's depending on the address, for the current schedule before you set a rehab budget. No published review-time target for a McAllen, Edinburg, or Mission permit was found, and Texas has no statutory permit clock like some other states, so don't promise your contractor a turnaround; ask the permit office directly and price the wait into your rehab budget.

Question 3

What does the Hidalgo County tax stack cost while I'm holding a flip?

Accepted Answer

More than the sale price suggests, and none of it is softened by a homestead exemption. Investment property gets no homestead exemption and no 10% homestead cap in Texas, so a flip is taxed at full appraised value. Stack the rates for a McAllen-city property in McAllen ISD: Hidalgo County 0.5750 and Hidalgo County Drainage District #1 0.1123 (a flood-control levy that runs county-wide), both adopted for TY2025, plus the city of McAllen at 0.449989 for FY 2024-25 and McAllen ISD at 0.9322 per $100, before the South Texas College rate is added. That's roughly $2.07 per $100 of value before the college levy, and a combined 2.1% to 2.5% works out to $4,100 to $4,900 a year on a median-value property, or about 3 months of the metro's median single-family rent. A flip you sell inside the year still owes the full bill for however long you hold it, so quote the carry against your real hold period, not a full tax year.

Question 4

What insurance and flood exposure should I underwrite for a McAllen flip?

Accepted Answer

Hidalgo County sits outside the coastal windstorm zone, but flood is the real local peril. The Texas Windstorm Insurance Association's 14-county coastal catastrophe area covers Cameron and Willacy counties, not Hidalgo, so a McAllen, Edinburg, or Mission property buys standard-market wind coverage rather than a TWIA policy. Flood is a different story: storms on June 24-25, 2019 dropped 12 to 18 inches of rain on the Valley, destroyed or seriously damaged nearly 1,200 homes, and triggered a federal disaster declaration (DR-4454) covering Hidalgo County. The terrain is a flat river delta, which is also why the county-wide drainage district levy exists. Pull the FEMA flood zone on the specific parcel before you close and price flood coverage as its own line, not an assumption baked into a standard policy.

Question 5

Is there title diligence specific to McAllen I should run before I flip a lot?

Accepted Answer

Yes, and it's the diligence step an out-of-town investor is most likely to skip. Hidalgo County is one of the counties most affected by Texas's colonias, unincorporated subdivisions historically sold as unplatted lots without water, sewer, or drainage. The state responded with Model Subdivision Rules under Water Code section 16.343, border-county platting requirements under Local Government Code chapter 232, and executory-contract protections for contracts for deed under Property Code chapter 5, subchapter D, all of which apply in Hidalgo County. A lot's chain of title can carry unrecorded or partially performed contract-for-deed history from that era. Before you buy to flip, confirm the lot sits on a recorded plat rather than a metes-and-bounds slice of an unplatted tract, run title deep enough to surface any contract-for-deed chain and get it resolved before closing, and confirm actual water and sewer service rather than "available in the area." Talk to your title company or attorney about a specific parcel's history.

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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