Texas Hard Money Lender

We offer first and second trust deeds with no prepayment penalties, no appraisal fees, and can fund in a matter of days.

Source Capital Funding is a Texas licensed, direct lender known for speed, reliability, and commitment to it’s clients. With over 40 years combined experience in hard money, we’re a well backed private lender that has funded over $550M in private loans since 2007.

Fast Decisions

As a direct lender, our approval process is built for speed as we underwrite and make all decisions in-house. From the time we are initially contacted to the time the loan is funded, our streamlined process allows us to fund loans in a matter of days.

Proven Track Record

Since 2007 we have successfully funded over $550M in loans secured by real estate. We have earned our reputation as a lender known for speed, reliability, and fairness.
Our team has the experience and ability to provide quick, direct answers to help expedite our client’s requests.

Well Capitalized

We’re a direct lender with immediate access to capital to lend. Because our company is backed by well established, accredited investors, there is always capital available to fund our loans. We are able to close quickly and with full transparency.

Loan Terms

INTEREST RATES	8.99% – 11.99% – First Position 11.99% -13.99% – Second Position	LOCATION	Arizona, California, Colorado, Minnesota and Texas only
LOAN AMOUNTS	$100,000 – $5,000,000	TYPES OF LOANS	Acquisition, Refinance and Cash-Out
LOAN DURATION	12-24 months	LIEN POSITION	First and Second Trust Deeds Only
ORIGINATION FEE	Starting at 2.0% of loan amount, depending on loan size and length of term	PROPERTY TYPES	Owner and Non-Owner Occupied Residential. Multifamily, Commercial, Industrial, Office, Retail, Mixed Use
LOAN TO VALUE	Up to 65% LTV in first position Up to 50% CLTV in second position	APPRAISAL FEE	None
CLOSING TIMEFRAME	10 business days or less	PREPAYMENT PENALTY	None

There are no minimum credit scores, employment requirements or financial minimums to qualify for a loan.

*All loans are secured by real estate for business purposes only

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Client Testimonials

“We were very pleased with the service we received from Source Capital. Communication was clear and responsive, funding was quick, and terms were as agreed and proposed.”

Brian OverstreetPresident, Advera Health Analytics

“Sacha and his team were on point from our first call to funding. They were professional and easy to work with. We will definitely be using them for our future transactions”.

Mark O’ToolePresident, Pacific Coast Home Mortgage & Real Estate Inc.

“The staff at Source Capital has helped me create new income streams. They are consistent, direct and deliver every time.”

Michael KornAgent, Keller Williams Realty

“As a lender myself, working with Source Capital shows that there are still a lot of good people in our industry, and we will definitely be in connection to do future business together. Job well done.”

Anthony TrujilloMortgage Broker, Paramount Partners

“I have never dealt with a hard money lender before but I can tell you my experience with Source Capital was very positive. I highly recommend”

Courtney RothClient

“Recently completed another flawless transaction with Source Capital. Why would anyone want to go anywhere else? They’re the best.”

Marianne BordognaAgent, Keller Williams Realty

“The team at Source Capital Funding was fantastic. Their professionalism, speed and solid loan terms is why I will be coming back to close more business with them.”

Sergio AbbudSenior Loan Officer, Better Rate Mortgage

“The team at Source are consummate professionals who work efficiently and effectively. Simply stated- truly exemplary and professional people”

Paul ElamOwner, San Diego’s Real Estate

“Source Capital has been an absolute pleasure to work with throughout. These guys are on top of their game.”

Tyler HansonAssociate Broker, Cushman & Wakefield

“In all my years, I can confidently say they are the most professional, prompt, courteous, and efficient private lender I have ever worked with!”

Greg ShieldsOwner, GSI Appraisals

“They were very responsive and extremely helpful and would certainly use them again. I highly recommend their services.”

Alvin FuchsAgent, Keller Williams Realty

“Highly recommend Source Capital Funding if you need money fast and you value efficiency. I will go back to them again if I need funding in the future. “

Kendall HeathClient

“I have always had a highly professional and honest experience with everyone on their team and would recommend to anyone looking for financing.”

Andrew BellahOwner, The Bellah Group

“They are always so patient, helpful, and professional. and have helped me so much! This can be such a stressful process, but they make it all so easy.”

Lauren MarcusClient

“Smooth and fast transaction as the loan was funded in 8 days. They are a pleasure to work with – Strongly Recommended.”

Borna EftekariAgent, Farmers Insurance

Hard Money Loans in Texas

Searching for a dependable hard money lender in Texas who you can entrust with your big visions? Boasting over 40 years of combined experience in hard money lending and results that speak for themselves, Source Capital is the lender you can count on. Our decorated history of rapid closing and fast funding is made possible by our understanding of our clients’ needs. Whether you need a hard money loan to fund your latest residential real estate investment or need it to fund a house flipping project, Source Capital is a proud financer of a wide variety of real estate ventures throughout Texas.

We work with clients quickly and transparently to fund their big-ticket projects. While we understand the complexities that come with extensive real estate projects and investments, we also understand our clients’ needs, concerns, and many different pathways to success.

Frequently Asked Questions

What type of loans do you do?

All our loans are secured by first and second deeds of trust (mortgages) on real estate only in AZ, CA, CO, MN and TX for business purposes only from $100K up to $5M. Examples of business purpose loans are loans to: purchase, repair or improve real property for use in the Borrower’s business; acquire, improve or maintain certain non-owner occupied rental property; purchase, improve or repair tools, equipment, machinery, fixtures or furnishings used in Borrower’s business; fund operating capital (e.g., employee salaries) or purchase or pay for business inventory, supplies, rent, taxes, insurance or other related expenses; or to pay off, refinance or consolidate business debts.

We do not offer loans for:

Ground-up construction projects
Personal use (pay bills, improve primary residence, medical collections, etc.)
Primary residence purchases
Land purchases or refinances
Special use/single purpose properties (church, car wash, dry cleaner, gas station,, etc.)
Hospitality properties (restaurant, hotel, motel, etc.)
After repair value (ARV) and/or provide funds for the purchase AND rehab costs
Rural areas of the states we lend in
Borrowers with no real estate as collateral (unsecured loans)

We understand every scenario is different. Contact a decision maker directly at 888.334.6636 to see if we can help with your request for financing.

Do hard money lenders need to be licensed in Texas?

Absolutely. To originate and fund loans in Texas, a lender needs to be BOTH State and Federally licensed.

At Source Capital, we continuously have the proper licensing to operate where we lend, so you don’t have to worry about working with an unlicensed lender.

Whether you’re taking out hard money loans in Colorado or Texas, you’re always working with reputable hard money lenders when you work with us.

What types of properties in Texas can you finance?

Generally speaking, hard money loans in Texas are designed for single family or condominium investment properties or second homes only due to Homestead Laws in the state. Some common types of commercial property that hard money loans are used for include:

Apartments
Medical offices
Office buildings
Retail buildings
Warehouses and industrial buildings

Securing a traditional loan to purchase these types of properties can be difficult, but it’s easier with a hard money loan. We offer hard money loans in Arizona, Texas, and other surrounding states to help you take the leap and make real estate investments.

What are typical interest rates for hard money loans in Texas?

Interest rates for hard money loans in Texas can vary quite a bit depending on the lender you’re working with, the structure of your loan, and the collateral you provide. It’s not uncommon to see interest rates between 10%-12% for Texas hard money loans, but you can find rates as low as 8.99% with Source Capital.

Interest rates can also vary widely by state, so interest rates for hard money loans in Minnesota are different from Texas interest rates. Reach out to us to learn more about our interest rates in Texas.

How long does the loan process take?

Because we are a direct hard money lender, we typically can approve loans in 24 hours and fund loans within 7-10 days from initial contact. Our automated hard money loan process and direct access to capital allows for quick decisions and funding with minimal paperwork.

Is there a minimum credit score to qualify for a hard money loan?

We have no credit score requirements. Unlike a bank, we are not focused on a number to dictate whether or not you can qualify for a hard money loan. We are focused on the real estate asset securing the loan, first and foremost.

At Source Capital, we work with all borrowers who have experienced past hardships that has affected their credit score. We understand that “life happens” and are committed to tailoring our hard money loans to suit your needs and will work closely with you throughout the process.

Do you do primary residence purchases?

We do not provide financing for primary residence purchases as we fund loans for business purposes only. Business purpose loans are defined as loans to: purchase, repair or improve real property for use in the Borrower’s business; acquire, improve or maintain certain non-owner occupied rental property; purchase, improve or repair tools, equipment, machinery, fixtures or furnishings used in Borrower’s business; fund operating capital (e.g., employee salaries) or purchase or pay for business inventory, supplies, rent, taxes, insurance or other related expenses; or to pay off, refinance or consolidate business debts.

How do hard money loans work in Texas?

When you borrow from a Texas hard money lender, you put down collateral in the form of real estate to secure your loan and this is what is focused on the most in the underwriting process.

With traditional (bank) loans, the main criteria for lending is based on your credit and financial situation. So if you have poor credit, a past bankruptcy or foreclosure and do not have steady employment, it is very difficult to qualify for the loan.

However, if you’re having trouble securing a traditional loan or need quick access to money, taking out a hard money loan may be a simpler alternative for you.

Who do Texas hard money lenders work with?

Hard money loans are commonly used by real estate investors, flippers, and developers to secure funding for investment property. They are also used by others who want the speed and flexibility that banks cannot provide. If somebody wants to invest in a second property but can’t get approved for a mortgage, they can use another property as collateral to secure a hard money loan.

Hard money loans in California and other growing states are commonly used to invest in property. Hard money lenders in Texas can also help you secure funding for construction and renovation if you’re a developer or flipper.

What are the benefits of working with a Texas hard money lender?

Texas hard money lenders can help you get access to money you might not be able to access through a traditional loan. Since you’re using collateral as security for the loan, it’s easier to get approved quickly. This also means you receive your money faster, so you can invest before you miss your opportunity.

Working with a licensed, direct lender like Source Capital gives you a chance to discuss your loan one-on-one with an expert if you have any questions. Whether you’re planning on investing in an apartment as an investment or want to use the equity in your current real estate, we can help with financing. We even offer owner-occupied hard money loans in Texas if you’re purchasing a residential property where you intend to live.

How do I get approved for a Texas hard money loan?

Getting approved for a hard money loan in Texas is easy. Unlike traditional loans that require an evaluation of your financial situation, including credit history, credit score, and income, hard money lenders in Texas focus solely on your property as collateral.

At Source Capital, we assess each application on a case-by-case basis. Whether you are a foreign national, have a history of bankruptcy, or are self-employed, we are here to help! Apply now online, or if you have any questions about applying for a Texas hard money loan, please don’t hesitate to give us a call at 888.249.9827.

Can I qualify if I have poor financials?

Absolutely. As our main focus is centered on the property being used as collateral for the loan, financial strength is not a requirement to obtain a loan with us. We understand there is a reason client’s come to us and do our best to provide a loan option that will work for you, whatever the situation may be.

How long are your loans for?

All our loans are amortized over 30 years and due in 1 or 2 years. We have no prepayment penalties so the loan can be repaid at any time with no additional interest payments owed.

What areas in Texas do you lend in?

We lend throughout the state but mainly focus on more urban than rural areas. Austin, Houston, Dallas/Ft. Worth, San Antonio, El Paso, and Arlington are just a few of the cities we lend in and their respective outlying areas.