Commercial real estate loans in Texas come from three main sources: local and regional banks, debt funds and private lenders, and national institutions like agencies and CMBS lenders. This guide covers 12 broker-recommended Texas commercial real estate lenders — nine banks and three private lenders — plus how to decide which type of Texas commercial mortgage fits your project.
Our team of commercial brokers and CRE experts hand-picked these lenders based on their trustworthiness, flexibility and how well they serve Texas' commercial real estate middle market. Brian Hwang, a contributor to this list, explained, "These are banks that are integrated into the local Texas communities that they serve," adding that they have a strong and long history of real estate lending in their areas. For the Texas-based private lenders and debt funds, Hwang said, "[they] have strong track records of active origination in the Texas markets," making them reliable and proven options.
Commercial Real Estate Loans in Texas: What's Available
Before picking a lender, it helps to know which product you're actually shopping for. The main types of commercial real estate loans available in Texas include:
- Permanent commercial mortgages — long-term, amortizing loans on stabilized, income-producing property. Banks, credit unions, life companies and agency lenders (Fannie Mae, Freddie Mac and HUD for multifamily) all compete here.
- Construction loans — short-term financing for ground-up development, usually from banks, converting or refinancing into permanent debt at completion.
- Bridge loans — one-to-three-year, interest-only financing for value-add and transitional deals that don't yet qualify for a permanent Texas commercial mortgage.
- SBA 504 and 7(a) loans — government-backed options for owner-occupied commercial property; several banks on this list are active SBA lenders.
- Mezzanine debt and preferred equity — subordinate capital that stacks behind a senior mortgage when you need higher leverage.
Texas commercial mortgage rates and terms track the national market — pricing is driven by the loan type, leverage and asset class more than geography — but Texas' depth of local banks means middle-market borrowers here often have more relationship-lending options than in most states.
9 Best Commercial Banks in Texas for Commercial Real Estate Loans
The security and lower interest rates offered by banks appeal to many commercial real estate investors and developers. These Texas banks are great options for construction and permanent loans, and bridge loans for multifamily, hospitality, retail, office and industrial projects.
If your project doesn't fit neatly into one of these categories, you might have trouble getting a traditional commercial mortgage. If that's you, skip to the private lenders section below.
1. Wallis Bank
Wallis Bank boasts having survived the Great Depression, both World Wars and the Great Recession without taking any government assistance. A full-service community bank, Wallis is able to take on small, rural clients to large, international clients. When it comes to commercial real estate loans in Texas, Wallis Bank is a flexible option for your CRE project. This commercial lender is active in construction and permanent loans, and is actively lending on multifamily, hotels, gas stations and industrial real estate. Wallis Bank is also an SBA lender.
2. Texas Brand Bank
Based in Dallas, Texas Brand Bank serves the Dallas-Fort Worth (DFW) metroplex. Established in 2005, Texas Brand Bank remains locally owned and operated, complete with the personalized experience you'd expect from a neighbor. Texas Brand Bank will consider all asset classes including hotels, land, retail, RV parks, manufactured housing and self-storage. It is also an SBA lender.
3. Origin Bank
With an emphasis on building strong relationships, Origin Bank, headquartered in Louisiana, serves Texas, Louisiana and Mississippi. If you're looking for a bank that's active in the community and has thoughtful values, this commercial lender is a great option. Origin Bank is active in self-storage, student housing, townhome construction, medical office and manufactured housing.
4. Valliance Bank
Valliance Bank is a community bank based out of Oklahoma, but quickly expanding into the Texas real estate market. Using the term "relationship banking," Valliance is dedicated to serving the needs of locals in the DFW metroplex and McKinney, Texas. Valliance Bank is active in construction financing, bridge loans and permanent loans.
5. Dallas Capital Bank
Not surprisingly, Dallas Capital Bank lends in the DFW metroplex. This commercial bank prides itself on providing expert advice and insight into commercial real estate financing in Dallas. With a wide network of relationships with local investors, financing experts and real estate professionals, Dallas Capital Bank has a wealth of knowledge to help you with your project. Dallas Capital Bank is active in construction loans, bridge loans and permanent loans across multifamily, retail, office and industrial real estate. Ask about their single-tenant NNN lease retail program.
6. Texas Gulf Bank
With locations along the Texas Gulf Coast, this small bank has a big impact on Texas commercial real estate. Texas Gulf Bank is based in Houston and focused on southeast Texas. If you're looking to build in Houston, you already know how quickly the city is growing — and this is a lender that will grow with you. Texas Gulf Bank is a real estate construction lender actively lending on townhomes, multifamily, retail and industrial real estate. It has a single-tenant NNN lease retail program and is also an SBA lender.
7. Woodforest National Bank
With decades of lending experience under its belt, Woodforest National Bank is among the strongest community banks in the US. Woodforest offers creative commercial real estate lending solutions, lending on retail, office and industrial real estate in Texas and other large markets around the country. They offer both construction loans and permanent loans.
8. Texas Capital Bank
Recognized by Newsweek as one of the most trusted banks in America, Texas Capital Bank is respected for its excellent leadership and relationship management. Consider Texas Capital Bank for multifamily construction in any and all Texas major markets.
9. Third Coast Bank SSB
Founded in 2008 and headquartered in Humble, TX in the Houston MSA, Third Coast Bank SSB uses cutting-edge technology and sophisticated tools to originate or refinance permanent mortgages. Third Coast Bank SSB is flexible, using a "common sense approach" to lending. They offer a personalized touch and continued advisement after closing. A local community bank, this bank is great for local Houston deals that are $10M and smaller.
3 Debt Funds and Private Lenders Based in Texas
Sometimes it's worth paying a little more in interest in exchange for the flexibility of working with debt funds and private lenders — especially on value-add, construction and transitional deals that banks won't touch. Here are three Texas-based commercial real estate lenders to consider.
1. Hall Structured Finance
Based in Dallas, Hall Structured Finance has an entrepreneurial spirit. If you do, too, Hall can help you turn your creative commercial real estate visions into reality. Hall is an institutional-grade debt fund family office. They focus on larger deals (over $20M) and can get to higher leverage levels than banks can. Hall Structured Finance is focused on hospitality and multifamily construction financing in the sunbelt (Texas, Florida and Arizona).
2. Flagship Capital Partners
Flagship Capital Partners is an investment fund sponsor. Flagship originates custom and alternative debt and equity capital solutions for middle-market commercial real estate, with first lien, mezzanine debt and equity investments. Flagship Capital Partners is based in Houston and is focused on Texas cities.
3. Peak Rock Capital
Peak Rock Capital is a leading investor in middle-market commercial real estate, headquartered in Austin, TX. Peak Rock Capital offers multifamily and industrial bridge loans, mezzanine loans and preferred equity.
Should I Choose a Texas Bank or a Texas Private Lender?
If you're new to commercial real estate investing, it can be especially tricky deciding between a bank and a direct lender. Your decision will depend on you, your project and your needs. If you're not convinced you should choose a local Texas commercial lender at all, consider what Hwang said: "Local banks know the Texas markets really well — their entire CRE loan portfolios are centered around the Texas MSAs." Local lenders have been lending and banking with customers in these markets for years.
Relationship banks offer bank-level service and, Hwang noted, "some of the cheapest debt capital in the market." On the flip side, private lenders and debt funds are less regulated, allowing them to offer a higher LTC/LTV when last-dollar leverage is required by a borrower's business plan. In return, they charge higher interest rates. So while banks offer stability and lower rates, private lenders and debt funds can get more creative on credit structures and lend on asset classes and projects that banks won't approve.
A practical rule of thumb for Texas commercial mortgages:
- Stabilized property, moderate leverage, time to close: start with the banks on this list, plus agency lenders for multifamily.
- Value-add, distressed or fast-close deal: start with debt funds and bridge lenders.
- Owner-occupied property: ask the SBA lenders on this list about 504 and 7(a) programs.
Texas Commercial Lending Made Easy
Finding the right commercial real estate lender for your project can cause analysis paralysis — twelve names is a starting point, but the Texas market has hundreds of active lenders, and the best terms come from running a real process across several of them. That's what Lev is built for: Lender Search matches your deal against lender appetite and history, so you're negotiating from data instead of a cold-call list. For help finding Texas commercial real estate financing, reach out to the experts at Lev.
