Financing & LoansQuestion 21
What Are Current Interest Rates for Investment Property in Houston?
Investment property rates in Houston typically run 0.5%–1% higher than primary residence rates. Expect 6.5%–8.5% for conventional and 7%–9% for DSCR loans.
Investment property rates are always higher than primary residence rates because lenders consider them higher risk. Houston rates track national trends with local variations.
- Conventional: 6.5%–7.5% for well-qualified borrowers (740+ credit, 25% down).
- DSCR: 7%–9% depending on credit score, LTV, and DSCR ratio.
- Hard money: 10%–14% for short-term bridge/rehab loans.
- Portfolio loans: 7%–9%, negotiable with local Houston banks and credit unions.
Bottom Line
Rates fluctuate — shop at least 3 lenders for every Houston deal. Even a 0.25% difference on a $200,000 loan saves you $30+/month. Focus on finding deals that cash flow at current rates rather than waiting for rate drops.