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    State CRE Guide

    Texas Commercial Real Estate Loans: Costs, Laws & C-PACE

    What changes for a commercial property loan in Texas: no transfer tax, non-disclosure sale prices, fast non-judicial foreclosure and an active C-PACE market.

    By BestLoanUSA Updated 4 min read

    Texas at a glance for commercial property loans
    WhatTexas
    Real estate transfer tax None. The Texas Constitution bars any new tax on a transfer of fee simple title to real property after January 1, 2016. [1]
    Sale price disclosure Not required. Texas is a non-disclosure state: the price paid is not in the county record. [2]
    Foreclosure process Non-judicial under the deed of trust's power of sale. Public auction on the first Tuesday of the month, 10 a.m.–4 p.m., after at least 21 days' notice. [3]
    20-day notice to cure Required only for property used as the debtor's residence — not for commercial property. [4]
    C-PACE law Property Assessed Clean Energy Act (2013). Cities and counties opt in; programs run by Texas PACE Authority and LoneStar PACE. [5]
    C-PACE volume $842.5 million across 128 projects, all-time through 2024 — third-largest state by dollars. [6]

    Checked 2026-09-29; sources are listed at the end of the page. Rates and rules change — your title company and closing attorney confirm the figures for a specific deal.

    Financing a property in Texas? Compare lenders for your deal →

    The commercial loan programs you can use in Texas — SBA 504, DSCR loans, bridge loans, bank and life-company permanent loans — are the same ones available in every state. What Texas changes is the cost of closing, the information a lender can see, and how quickly a lender can enforce its lien. Those three things shape the terms you are offered, so they are worth understanding before you apply.

    Closing costs: no transfer tax, no mortgage tax

    Many states tax the deed when a property sells, and some tax the mortgage when a loan is recorded. Texas does neither. A 2015 constitutional amendment bars any new tax on the transfer of real property, and Texas levies no mortgage recording tax — the closing statement shows county recording fees instead.

    Example: a $2,000,000 building bought with a $1,400,000 loan. In Texas, state and local transfer and mortgage taxes on that deal are $0. The same purchase in Florida would carry $14,000 of deed stamps plus $7,700 of stamp and intangible tax on the loan; in New York City, over $100,000 across the transfer and mortgage taxes (see the Florida and New York guides). Title insurance, lender fees, the appraisal and legal fees still apply in Texas.

    The saving matters most on a refinance: with no tax on the new mortgage, refinancing costs in Texas are mostly lender and title fees, which makes the break-even on a rate reduction shorter. The refinance break-even calculator shows how many months it takes.

    Non-disclosure: why lenders underwrite the income harder

    Texas does not require the price paid for a property to be recorded. Appraisers and lenders therefore have fewer public sale comparables than in disclosure states, and for commercial property — where there is no large shared sales database — the gap is wider.

    In practice, that puts more weight on the income approach: the property's net operating income and the cap rate applied to it. What helps your file:

    • A current rent roll with lease start and end dates, and a trailing-12-month operating statement.
    • Your purchase contract and, if the seller agrees, the closing statement from their purchase — evidence that the appraiser can't pull from the county.
    • For owner-occupied buildings, the business's own financials, since owner-occupied loans are underwritten on the business's cash flow.

    Lenders size the loan on DSCR as much as on value; run your numbers through the DSCR calculator before you ask for a loan amount.

    Foreclosure is fast — and that shapes the terms

    Most Texas commercial loans are secured by a deed of trust with a power of sale. If the borrower defaults, the lender does not need a court: after at least 21 days' notice, the property is sold at a public auction held on the first Tuesday of the month. The 20-day notice-to-cure period in the same statute applies only to a debtor's residence, not to commercial property.

    For lenders, a predictable, quick remedy lowers the risk of a loan. For you, it means two things. First, Texas is a market where lenders compete — terms can be good. Second, a default moves quickly, so the loan documents deserve a careful read: the cure periods in the note and deed of trust are the ones that protect you. A non-recourse structure limits what a lender can pursue beyond the property.

    C-PACE in Texas

    Texas passed its Property Assessed Clean Energy Act in 2013. C-PACE finances energy-efficiency, renewable-energy, water-conservation and resilience improvements through a voluntary assessment on the property, which the local government places at the owner's request and a private capital provider funds. Cities and counties opt in; two program administrators, Texas PACE Authority and LoneStar PACE, run the programs.

    According to the C-PACE Alliance's 2024 national data, Texas C-PACE has financed $842.5 million across 128 projects since the program began — third among states by dollars. Because the assessment is senior to the mortgage, your first-mortgage lender must consent before C-PACE is added. C-PACE Desk, a BestLoanUSA site, keeps Texas program details and capital providers up to date.

    Where to start

    Pick the program first — SBA 504 for an owner-occupied building with 10% down, a DSCR loan for a rental property qualified on its income, a bridge loan for a property that needs work before it qualifies for permanent debt. Then compare lenders on the same request. If you run a business and need financing that isn't tied to real estate, the Texas business loan guide covers SBA offices and community lenders by region.

    Ready to see what a Texas property qualifies for? Start a commercial real estate loan request — one application, compared across our lender network.

    💡 BestLoanUSA compares bank, SBA, DSCR and bridge lenders for Texas commercial property. See how it works — no hard credit pull to start.

    Sources: Tex. Const. art. VIII, §29; Tex. Prop. Code §51.002; Tex. Local Gov't Code ch. 399; Texas REALTORS® on non-disclosure; C-PACE Alliance, 2024 National C-PACE Program Volume Data. Florida and New York figures: see those guides.

    The bottom line

    Texas takes cost out of closing — no transfer tax and no mortgage recording tax — but it asks more of your underwriting file. With sale prices undisclosed and foreclosure fast, lenders lean on the property's income. Bring a clean rent roll, a trailing-12 operating statement and a clear plan for the building, and compare at least two structures before you sign.

    Commercial property by metro area in Texas

    The state rules above apply everywhere in Texas. These are the local ones — county and city taxes, building mandates and programs — that change the numbers in its largest markets.

    Houston Harris County

    No zoning
    The City of Houston has no land-use zoning. Its development code (Chapter 42) sets lot size and setbacks; use limits come from recorded deed restrictions, so the title and deed-restriction review does the work a zoning letter does elsewhere. [7]
    Floodplain rules
    Since the 2018 amendments to Chapter 19, new or substantially improved buildings in the 100- and 500-year floodplains must have the lowest floor at least 2 feet above the 500-year flood elevation — a line item in any renovation budget. [8]
    C-PACE
    Houston PACE, created by City Council in 2015 and run by the Texas PACE Authority, covers commercial, industrial and 5+ unit multifamily property in the city. [9]

    Dallas Dallas County

    City tax rate
    The City of Dallas adopted 69.88 cents per $100 of value for FY 2025–26 — the city share only; county, school district and other levies add to it. [10]
    C-PACE
    The City of Dallas has run a PACE program since 2016, administered by the Texas PACE Authority; Dallas County offers PACE as well. [11]

    Fort Worth Tarrant County

    County tax rate
    Tarrant County: $0.1862 per $100 of value for tax year 2025. [12]
    City tax rate
    City of Fort Worth: $0.6700 per $100 for tax year 2025 ($0.5225 operations + $0.1475 debt), by Ordinance 27980-09-2025. [13]
    C-PACE
    Tarrant County runs a PACE program under Local Government Code ch. 399 for commercial, industrial and multifamily owners. [14]

    Austin Travis County

    Energy disclosure
    Under Austin’s ECAD ordinance, commercial buildings of 10,000 sq ft or more served by Austin Energy must benchmark and report energy use every year by June 1. [15]
    C-PACE
    Travis County’s PACE program, administered by the Texas PACE Authority, covers commercial, industrial, agricultural and 5+ unit residential property, with standard lender-consent forms published by the county. [16]

    San Antonio Bexar County

    County tax rate
    Bexar County: $0.299999 per $100 of value for FY 2025–26, unchanged from the year before. [17]
    C-PACE
    San Antonio’s PACE program (city ordinance, 2020) is administered by the Alamo Area Council of Governments rather than the Texas PACE Authority used in Houston, Dallas and Austin. [18]

    Commercial loan rates and terms in Texas

    Rates and leverage come from the lender, the property and the borrower, so they are the same national ranges in Texas as elsewhere — what changes here are the closing costs and rules in the table above. Typical terms as of September 2026:

    ProgramRateMax LTV / LTCTerm
    Bank / credit union 6.5–8% 65–75% (80% multifamily) 5–10 yr
    SBA 504 6.25–7.25% Up to 90% 10–25 yr
    SBA 7(a) 8.5–11.5% Up to 90% Up to 25 yr
    DSCR 6.75–8.75% Up to 75–80% 5–30 yr
    CMBS 7–8% Up to 75% 5–10 yr
    Bridge 6.25–8.25% 65–80% 12–36 mo
    Construction 6.75–10.5% 65–80% LTC 12–24 mo

    How each range is built: commercial real estate loan rates by type.

    Texas commercial real estate loan FAQ

    What are commercial mortgage rates in Texas?

    Commercial lenders price a loan on the property and the borrower rather than the state, so Texas rates follow national ranges: about 6.5–8% for a bank loan, 6.25–7.25% for SBA 504, 6.75–8.75% for a DSCR loan and 6.25–8.25% for a bank or debt-fund bridge loan (benchmarks as of September 2026).

    How much down payment do I need for a commercial property in Texas?

    Typically 25–35% for a bank loan and 20–25% for a DSCR loan. An owner-occupied building can qualify for SBA 504 with 10% down (15% for a business under two years old or a special-purpose building, 20% if both).

    Does Texas charge a transfer tax or mortgage tax on a commercial deal?

    No. The Texas Constitution bars a new tax on transferring real property, and Texas has no mortgage recording tax — a closing pays county recording fees instead.

    Is Texas a judicial or non-judicial foreclosure state?

    Mostly non-judicial. A deed of trust’s power of sale lets the lender sell at a public auction on the first Tuesday of the month after at least 21 days’ notice (Tex. Prop. Code §51.002).

    Is C-PACE available in Texas?

    Yes, where the city or county has opted into the PACE Act (Local Gov’t Code ch. 399). Texas PACE Authority and LoneStar PACE run the programs, and the mortgage lender must consent.

    Sources

    1. Tex. Const. art. VIII, §29
    2. Texas REALTORS®
    3. Tex. Prop. Code §51.002
    4. Tex. Prop. Code §51.002(d)
    5. Tex. Local Gov't Code ch. 399
    6. C-PACE Alliance 2024 data, via C-PACE Desk
    7. City of Houston Legal Dept. — Deed Restrictions FAQ
    8. City of Houston — Chapter 19 floodplain ordinance (2018)
    9. City of Houston — Houston PACE Program overview (2025)
    10. City of Dallas — FY 2025-26 Adopted Budget memo
    11. City of Dallas Office of Economic Development — PACE
    12. Tarrant County — Notice of Tax Rate FY26
    13. City of Fort Worth — Ordinance 27980-09-2025
    14. Tarrant County — P.A.C.E.
    15. Austin Energy — ECAD for Commercial Buildings
    16. Travis County — PACE
    17. Bexar County — FY 2025-26 Adopted Budget
    18. City of San Antonio — PACE

    Checked 2026-09-29.

    Run the numbers

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