Permanent commercial mortgage debt on stabilized Texas property.
Long-term, permanent financing for stabilized commercial real estate. We place it in house through agency multifamily channels (Fannie Mae and Freddie Mac), insurance funds, and other wholesale sources. Texas splits by asset class: industrial is strong, office is still repricing. Business-purpose only, and every structure is set in underwriting.
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
For a stabilized asset ready for permanent debt, we shop your file across agency multifamily programs, insurance companies, and wholesale lenders, then place the structure that fits your hold. When a deal needs to stabilize first, we can bridge it and refinance into permanent debt later.
Which Texas assets are actually ready for permanent debt right now?
The ones with occupancy a long-term lender can rely on, and in Texas that skews industrial. Dallas-Fort Worth led the entire United States in industrial supply and demand in the second quarter of 2026, with 17.9 million square feet of year-to-date net absorption against 9.3% vacancy, and Houston added 5.8 million square feet of positive absorption at 7.6% vacancy on a streak that now runs 16 years. Office is the other story: 19.9% vacancy in DFW, 20.6% in Austin and 27.7% in Houston in the same quarter. So a stabilized industrial or multifamily asset is a permanent-debt conversation today, while an office building with real vacancy usually needs bridge debt and a business plan first, then permanent financing once it performs. One more thing worth saying plainly: there is no citable statewide Texas cap rate series, and we would not underwrite to one if there were. Your rent roll and your comps do the work.
Does Texas charge a transfer tax when I buy a commercial asset?
No real estate transfer tax, and that is not just current policy. It is constitutionally barred. Article VIII, section 29 of the Texas Constitution, added by the voters in 2015, says that after January 1, 2016 no law may be enacted imposing a transfer tax on a transaction that conveys fee simple title to real property. So the answer does not change with the next session, and on a large placement that is real money: a state that charges even a fraction of a point on a $10M transfer is charging tens of thousands of dollars that Texas does not. The carve-out in that section is a tax on the issuance of title insurance, which is not barred. You still pay county recording fees, and each of the 254 counties runs its own clerk recording practice, so confirm the fee schedule for the county your asset sits in. Talk to your attorney about the specific instruments being recorded.
Can I shop title companies to cut closing costs on a Texas permanent loan?
Not on the premium. Texas is one of the few states where the government sets the title rate. Insurance Code section 2703.151 requires the Insurance Commissioner to fix and promulgate title insurance premium rates, so for a given policy amount the basic premium is identical at every title company in Texas. Commissioner's Order No. 2025-9697 cut those basic premium rates 6.2% effective March 1, 2026. TDI's own worked example: a $268,500 policy carries a $1,612 basic premium. What you are actually shopping for is escrow service, endorsements, closing-fee items, and whether the company can handle your entity structure and an agency lender's document set. Budget the premium as a fixed number and spend your negotiating time elsewhere.
How do Texas property taxes hit the NOI a permanent lender underwrites?
Assume the tax bill resets after you buy, and assume none of the relief you have read about reaches your asset. Texas trades income tax for property tax: there is no state individual income tax, and the effective property tax rate runs roughly 1.2% to 1.4% depending on the county. On a permanent loan that line is fixed, non-discretionary and locally set for the whole term. The 2025 relief package is homeowner relief. SB 4 and Proposition 13 raised the school district homestead exemption to $140,000 for the 2026 tax year, and homestead exemptions do not apply to non-owner-occupied investment property. Neither does the homestead 10% appraisal cap, so assessed value on your asset can move with the market year over year and protest season becomes a live variable on a long hold. Underwrite the tax line at reassessed value rather than the seller's current bill, and have your CPA or property tax counsel price the specific parcel.
Will Texas rent concessions change how an agency lender reads my rent roll?
Yes. Underwrite to effective rent, not asking rent. The Dallas Fed reported in 2026 that concessions are widespread across Texas metros, running six to eight weeks free and as much as 10 to 12 weeks in some submarkets, with a higher share of properties offering them in the Texas majors than nationally. Concession levels move quarter to quarter and submarket to submarket, so price the ones actually on your rent roll rather than a market average. Statewide average apartment rent was $1,452 as of July 2026, down about 1% year over year, so the trend is not closing that gap for you. A rent roll built on advertised rents will not survive a long-term lender's look at what you actually collect, and the shortfall shows up in the debt service coverage test that sizes your loan. Bring trailing 12 collections and the concession schedule to the first call and the placement moves faster.
Why does the appraisal carry more weight on a Texas commercial file?
Because Texas is a non-disclosure state. No statute compels reporting a sale price to the county appraisal district, prices are not recorded on deeds, and you cannot pull them from a county clerk search. Appraisal districts work from voluntary submissions by agents, title companies and owners, plus MLS data obtained by agreement. For commercial and off-market deals that makes comps genuinely harder to source than in a disclosure state, and it pushes more of the value support onto the appraisal itself. Expect the income and the operating history to be underwritten hard, and expect the valuation step to carry real weight on the file. It is also why a clean set of trailing financials is worth assembling before you ask for a quote.
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.
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