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Hard money and fix and flip loans in McKinney, Texas
Loans for historic homes downtown, new construction and rentals in McKinney.
The McKinney market for investors
McKinney, the seat of Collin County, is one of the fastest-growing cities in the country. Its historic downtown is surrounded by older homes, and new subdivisions continue to spread across the north and west.
Investors renovate historic and older homes near downtown, build new homes, and hold newer rentals in fast-growing areas.
Areas investors ask about
- Historic downtown McKinney: older and historic homes, some in a historic district
- East McKinney: lower-priced homes to renovate
- North and west McKinney: new construction and newer rentals
Plan for these on a McKinney deal
- Investment property gets no homestead exemption, and combined property tax rates in the metroplex are often around 2% of value or more. For 2024 to 2026 the taxable value of non-homestead property worth $5 million or less can rise no more than 20% a year, but the limit resets when the property sells. Budget with full market value.
- Texas has no transfer tax and no mortgage recording tax, so closing costs are mostly title insurance, at rates set by the state, and recording and lender fees.
- Exterior work on homes in McKinney’s historic districts needs city review. Allow time for it in the schedule.
- Newer subdivisions usually have homeowners association dues, which count in the payment.
Loans available in McKinney
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of single-family rentals, duplexes, townhomes and small multifamily | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home, a duplex, a build-to-rent home or a small apartment building, lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
McKinney hard money loans: common questions
Yes, at up to 90% of cost for experienced builders, with the lot included.
Yes, as fix and flip or rental loans on investment property.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. Closings are handled by a Texas title company.
Looking at a property in McKinney?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.