Out-of-state owners refinancing Texas CRE access the same lender universe as in-state owners, agency, CMBS , life-co , bank, and face no general restriction. Plan for Texas-specific issues: property-tax volatility from annual reassessment, elevated insurance pricing on coastal properties, and local Texas counsel for closing .
What is the property-tax issue?
Texas reassesses property annually and tax bills can swing materially with market-value changes and political budget cycles. Lenders underwrite full reassessed property tax based on current market value, which can be 20 to 40 percent above the prior year on a recently acquired property. Sponsors must escrow accordingly.
What about insurance?
Texas insurance pricing has risen sharply with hurricane and hail exposure. Lenders underwrite to current quoted renewal rates, not in-place premiums. On coastal multifamily, insurance can run $2,500 to 4,500 per unit annually and meaningfully reduce sized loan proceeds.
Sources
- Biennial Report to the Legislature · Texas Department of Insurance · 2025
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1