Mixed-use properties are one of the most versatile investment vehicles in Texas real estate — a ground-floor retail space with apartments above, a storefront with an owner-occupied unit in back, or a small strip with residential units on the second floor. The challenge? Most traditional banks treat mixed-use as too complicated. We don’t.

What Is a Mixed-Use Property Loan?

A mixed-use loan finances a property that combines commercial and residential use under one roof. In Texas, common examples include:

Retail storefront with 2–8 apartments above
Office building with a residential unit for the owner
Small strip center with live-work units
Bar or restaurant with upstairs apartments

Because these properties generate income from multiple tenants — both commercial and residential — they can be strong cash-flowing assets. The financing, however, requires a lender who understands both sides.

Why Banks Turn Down Mixed-Use Loans

Conventional banks struggle with mixed-use properties for a few reasons:

Underwriting complexity — is it a commercial loan or a residential loan? Banks often can’t decide.
Appraisal issues — mixed-use comps are hard to find, making bank appraisers uncomfortable.
Income documentation — if you own the commercial space yourself, proving stabilized income is difficult.
Loan committee approval — mixed-use deals get kicked around between commercial and residential desks for months.

Private and hard money lenders focus on the asset value and rental income — not the bureaucratic classification problem.

Our Mixed-Use Loan Programs in Texas

We offer several financing options for mixed-use properties depending on your situation:

Hard Money Mixed-Use Loans

Loan amounts: $150,000 – $5,000,000
LTV: up to 70% of appraised value
No tax returns required
Close in 7–14 days
Ideal for acquisitions, value-add plays, and bridge situations

DSCR Mixed-Use Loans

Qualification based on property income, not your personal income
Minimum DSCR: 1.10–1.25x
30-year fixed options available
No personal income verification

Bridge Loans for Mixed-Use

Stabilize the property first, refinance into permanent financing later
Interest-only payments during the bridge period
12–24 month terms

What We Look At When Underwriting Mixed-Use

Our underwriting focuses on three things:

Property value — after-repair value or current appraised value
Rental income — actual or market rents from all units (commercial + residential)
Borrower experience — some track record with investment property is preferred but not always required

We do not require tax returns, W-2s, or proof of employment for most of our mixed-use programs.

Texas Cities Where We Finance Mixed-Use Properties

We lend on mixed-use properties throughout Texas, including Houston, Dallas, Fort Worth, San Antonio, Austin, El Paso, Corpus Christi, Lubbock, Midland, and all surrounding markets. Urban infill mixed-use in gentrifying neighborhoods is a specialty.

Get a Mixed-Use Loan Quote Today

If you have a mixed-use property in Texas and need financing — whether for purchase, refinance, or cash-out — we can typically provide a term sheet within 24 hours. Apply online or call us to discuss your deal. No tax returns. No W-2s. Fast close.

Mixed-Use Property Loans Texas: Finance Retail + Residential in One Deal