El Paso is one of the most affordable big metros in Texas, with a renter base anchored by Fort Bliss and resale buyers who often use VA and FHA loans. Our lending partners finance it on standard terms. This page covers what the military market means for a rental, how to finish a flip for government-loan buyers, and the Texas rules that apply.
El Paso is one of the largest metros in Texas and one of the most affordable, with close to 900,000 people and Ciudad Juárez and Las Cruces next door. It meets every location test our lending partners use, and Texas has no county on their list of six capped at 50 percent leverage, so standard terms apply.
What sets El Paso apart for investors is who rents here. Fort Bliss, one of the largest Army installations in the country, brings a constant flow of military households, many of them renting. Add a large university, medical centers and cross-border trade, and the renter base is broad and steady.
Military tenants move on orders, so a rental near the post can turn over more often than one across town. It also tends to re-rent quickly, because new households arrive on the same schedule. Price the turnover in: a few extra weeks of vacancy and a fresh coat of paint each cycle.
A DSCR loan suits this kind of rental, because it qualifies the property on its rent rather than your income. Our lending partners' DSCR program runs from $75,000 to $2 million at up to 80 percent of value, with rates from 5.99 percent on the program page. The appraiser will estimate market rent, and the rent has to cover the full payment, including property tax and insurance.
El Paso's prices put many resale buyers in VA and FHA loans. That shapes a flip in two ways.
Finish to pass the appraisal. Government-backed loans come with property condition standards the appraiser checks: working systems, safe stairs and railings, no peeling paint on older homes, a sound roof. A flip that leaves those for the buyer can lose the sale.
Mind the calendar. FHA will not insure a purchase within 90 days of your own acquisition, and a big price jump within 180 days triggers a second appraisal. Plan your listing date around that if your likely buyer uses FHA.
Texas is a non-disclosure state, so build the after-repair value from closed sales an agent pulls from the multiple listing service, and check that renovated homes on the same street clear our lending partners' $100,000 minimum.
No transfer tax on the sale, and no state income tax on rental profits.
Property tax resets on purchase. Texas limits yearly appraisal increases on non-homestead property only after a full year of ownership, and removes the limit when the property sells. Estimate your tax on the price you pay and the full combined rate for the property's city, county, school district and other taxing units.
Fast foreclosure. Texas generally forecloses outside court on the first Tuesday of the month, which keeps lenders comfortable and brings auction properties to market regularly.
Fix and flip and bridge loans: from $50,000, up to 100 percent of cost but no more than 70 percent of after-repair value, with a 600 minimum credit score. Standard pricing under the underwriting guidelines is 12.99 percent and 2.99 points. The 10.99 percent starting rate is available after two loans have been paid off in good standing with our lending partner; a first-time borrower should expect to start above it and earn the way down.
Construction loans: $100,000 to $3 million on non-owner-occupied single-family homes, from 8.5 percent.
Loans close in an entity such as an LLC, and every owner of 30 percent or more personally guarantees the loan. Terms change, so we confirm them for your property before you commit.
Yes. El Paso is a metro of close to 900,000 people and sits beside Ciudad Juárez and Las Cruces, so it meets our lending partners' location guideline easily. The property must be non-owner-occupied investment property with an after-repair value of at least $100,000.
A broad mix, including a large number of military households tied to Fort Bliss, one of the largest Army installations in the country. Military renters move on orders, so turnover can be higher, but units near the post tend to re-rent steadily.
No. Texas does not tax the transfer of real estate. It is a non-disclosure state, though, so sale prices are not public and comparable sales have to come from the multiple listing service through an agent.
Often. Texas limits yearly appraisal increases on non-homestead property only after a full year of ownership, and the limit is removed when the property sells. Estimate taxes on your purchase price and the full combined rate for the property's taxing units.
Many do, given the military presence and the price range. If you are flipping, finish the house to pass a government-loan appraisal, and remember that FHA will not insure a purchase within 90 days of your own acquisition.
In some older neighborhoods it can. Much of El Paso clears it easily, but check renovated sales on the same street before you buy, because our lending partners require an after-repair value of at least $100,000.
Holding an El Paso rental? Our two free landlord books compare what a rental costs to carry across twelve states, including Texas.
Answer these and your deal goes to our lending partner's team, who will contact you about whether it is fundable and on what terms. By sending it you agree to your details being shared with them. Investment property only — our lending partners do not finance a home you will live in.
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Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.
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