Question 1

Why is the flip margin in Texas so much thinner than the national number?

Accepted Answer

Because Texas flips on volume, not on appreciation. ATTOM's Q1 2026 state data puts Texas at 6,367 flips, 9.9% of all sales, an average gross profit of $15,965, and a 5.6% gross return. The national set that quarter was 64,348 flips, 8.0% of sales, roughly $66,000 gross profit, and 25.4% gross return. Read the definition before you read too much into either figure: ATTOM's gross ROI is resale price against purchase price only, with no rehab, carry, or financing in it, so it is not a project return and a $15,965 average spread is what a Texas rehab budget, carry, and financing all have to come out of. The direction is at least right, with gross profit up from $13,472 and gross return up from 4.9% a year earlier. Underwrite the buy hard and run the whole deal on the fix and flip calculator before you sign a contract.

Question 2

Can you fund a Texas foreclosure auction buy, and how much lead time do I need?

Accepted Answer

Yes, and the statute sets your calendar for you. Texas forecloses non-judicially under Property Code section 51.002. Sales run on the first Tuesday of the month, between 10 a.m. and 4 p.m., at the county courthouse of the county where the property sits, or at another nearby public place the commissioners court has designated. If the first Tuesday falls on January 1 or July 4, the sale moves to the first Wednesday. Notice of sale, including the earliest time the sale will begin, must be posted, filed with the county clerk, and mailed to the debtor at least 21 days ahead. The extra 20-day notice to cure applies only where the property is the debtor's own residence, which is why most non-owner-occupied files run on the shorter track. Practically, that means Texas distressed inventory arrives in one batch a month on a fixed date, and money has to be committed before the sale, not after. We issue a term sheet the same day and typically fund within 48 hours of clear title, so most files land at 5 to 7 days, subject to underwriting. Apply now when you see the posting, not the week of the sale.

Question 3

Can I shop for a cheaper title policy on a Texas flip?

Accepted Answer

No, and that is a Texas quirk worth knowing. The Texas Insurance Commissioner is required by Insurance Code section 2703.151 to fix and promulgate title insurance premium rates, so the basic premium on a given policy amount is identical at every title company in the state. Order No. 2025-9697 cut those basic premium rates 6.2% effective March 1, 2026. TDI's own worked example under the new schedule: a $268,500 policy costs $1,612, computed as $268,500 minus $100,000, times 0.00494, plus $780. What you can still shop is escrow service, endorsements, and the closing-fee items, which is where the real difference between title companies shows up on a flip that has to close on a deadline. Budget the premium as a fixed line and pick the company on whether it can actually close you fast.

Question 4

How do I support ARV in a non-disclosure state?

Accepted Answer

With more work than you would need in a disclosure state. Texas does not compel anyone to report a residential sale price to the county appraisal district, and sale prices are not written on deeds or pulled from a clerk search. Appraisal districts run on voluntary submissions from agents, title companies, and owners, plus MLS data obtained by agreement. Non-disclosure is not confidentiality, and MLS-listed sales generally reach the appraisal district anyway, but off-market and non-MLS comps are genuinely harder to verify here. Two consequences for your file: the appraisal and BPO carry more of the load on after repair value than they would elsewhere, and an ARV built on unverified private-sale chatter will not survive our review. Bring the closed MLS comps you are relying on when you send the deal in.

Question 5

What do Texas taxes and insurance do to my carry on a 6-month flip?

Accepted Answer

More than the no-income-tax headline suggests. Texas has no state individual income tax, and it makes that back on property tax: the Tax Foundation puts the effective rate at 1.40% of owner-occupied housing value for 2026, and published figures run roughly 1.2% to 1.4% depending on the county and the vintage. None of the homestead relief reaches you. The 2025 legislation that raised the school district homestead exemption to $140,000 for the 2026 tax year, approved as Proposition 13, flows to owner-occupants, and the 10% annual appraisal cap is a homestead feature too, so a flip you hold has neither. Expect the bill to step up when the prior owner's homestead-capped value comes off. Insurance is the other live line: Texas average homeowners premiums rose more than 55% between 2019 and 2024, with TDI-filed average rate changes of 21% in 2023, 19% in 2024, and 4.3% in 2025, and a vacant-dwelling or builder's risk policy prices above a standard owner policy. Get real tax and insurance quotes for the specific address, and talk to your CPA about your own situation.

Question 6

Does the statewide median tell me anything about my deal?

Accepted Answer

Almost nothing, and it is worth knowing why. The Texas median sale price was $340,000 in the second quarter of 2026, unchanged year over year, on 99,688 closed sales, up 4.5%, with 5.4 months of inventory and an average 65 days on market, 3 days longer than a year before. That flat statewide number is an average of prices rising in 14 Texas metros and falling in 11, with one flat, so it is big-metro softness and small-metro strength cancelling out rather than a market standing still. Underwrite the exit to your submarket's own days on market and comps, and note that 65 days on market is the listing clock alone, before rehab time. Our fix and flip loan runs a 6-month interest-only term, so build rehab, listing, and a price reduction into that window rather than assuming a fast clean sale.

Question 7

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 8

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 9

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 10

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 11

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 12

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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