Texas Property Tax Loans,explained start to finish.
A Texas property tax loan pays your delinquent property taxes now so the county penalty clock stops — then you repay on simple monthly terms. Here's exactly how it works under Texas Tax Code §32.06, what it costs, who qualifies, and how Prime Tax Funding keeps it clear, compliant, and kind.
What is a Texas property tax loan?
A property tax loan — also called a tax lien transfer — is a way for a Texas property owner to clear delinquent property taxes without paying the county a lump sum.
A licensed lender pays your past-due taxes directly to the county. Under Texas Tax Code §32.06, you authorize the county to transfer its tax lien to that lender. The moment the county is paid, the penalties, interest, and collection costs stop growing.
You then repay the lender on fixed monthly terms instead of the county's escalating charges. When the balance is paid in full, the lien is released. It is not a refinance of your mortgage and it does not require selling your property.
Why owners use one
- Stops penalties fast. County charges can approach 47% in the first year if left unpaid.
- $0 due at closing. Residential closing costs are capped and rolled into the loan.
- Keeps your property. Avoid county lawsuits, foreclosure risk, and mounting attorney fees.
How a §32.06 lien transfer works
Three steps from delinquent taxes to a payment plan you control.
You apply and we review the property
Tell us the property and the tax amount owed. Underwriting focuses on the property, the tax-account status, and lien/title — not your credit score.
You authorize the §32.06 lien transfer
You sign loan documents that authorize transferring the county's tax lien to Prime Tax Funding. Residential homesteads get a 3-business-day right to cancel.
We pay the county and you repay us monthly
After the cancellation window, we pay the county in full — penalties and interest stop. You repay on fixed terms from 12 to 120 months. When it's paid off, the lien is released.
What it costs — and how Texas law protects you
Residential property tax loans are some of the most tightly regulated lending in Texas. Here's what that means for your wallet.
18% rate cap
Texas law caps the interest rate on a residential property tax loan at no more than 18% per year — your rate is disclosed in your final Truth in Lending documents.
$900 closing-cost cap
Residential closing costs are capped at $900 by law and rolled into the loan, so there is $0 due at closing. You see the full fee breakdown before you sign.
3-day right to cancel
On a homestead, you have a 3-business-day right to rescind after signing. We only pay the county after that window closes.
No prepayment penalty
Pay the loan off early at any time with no penalty. Terms run from 12 to 120 months, so you can match the payment to your budget.
Example: $10,000 financed at a 14.00% APR over a 10-year term is about 120 monthly payments of roughly $155 (no balloon payment), an estimated total of payments of about $18,632. Rates, amount financed, closing costs, and total payments vary; exact terms and APR are disclosed in your final documents. Your tax office may offer installment plans that may be less costly — ask your county for details.
Which property tax loan fits you?
Residential and commercial property tax loans follow different rules. Here's how they compare.
| Residential | Commercial & investor | |
|---|---|---|
| Typical use | Homestead & owner-occupied homes | Investment, rental, land & commercial property |
| Interest rate | Capped at 18% per year by Texas law | Negotiated per transaction |
| Closing costs | Capped at $900 — $0 due at closing | Itemized per transaction, rolled into the loan |
| Right to cancel | 3-business-day rescission after signing | No mandated rescission — can fund faster |
| Prepayment penalty | None | None |
| Credit check | No minimum credit score required | No consumer credit report pulled in standard underwriting |
| Repayment term | 12 to 120 months | Structured to the property and account |
Do you qualify?
Most Texas property owners with delinquent taxes can qualify — the property does most of the work, not your credit.
- The property is located in Texas and reasonably maintained.
- Property taxes are delinquent (or about to become delinquent) with the county.
- You own the property — residential homestead, rental, land, or commercial.
- No minimum credit score: approval focuses on the property and the tax account, not your FICO.
Texas property tax loan questions
What is a Texas property tax loan?
A Texas property tax loan is a financing transaction in which a licensed lender pays your delinquent property taxes directly to the county and the county's tax lien is transferred to the lender under Texas Tax Code §32.06. You then repay the lender on fixed monthly terms, and when the loan is paid off the lien is released.
Is a property tax loan the same as a tax lien transfer?
Yes. In Texas property tax lending, "property tax loan" and "tax lien transfer" describe the same transaction — the delinquent taxes are paid and the county's lien is transferred to the lender, with repayment documented under loan instruments.
Will a property tax loan hurt my credit?
Prime Tax Funding does not use a minimum credit score to determine eligibility. Approval focuses on the property and the tax account rather than your credit, and standard underwriting reviews property information, tax-account status, and lien/title.
How much does a Texas property tax loan cost?
Texas law limits residential property tax loan interest to no more than 18% per year and generally caps residential closing costs at $900 (plus limited recording costs). For example, $10,000 financed at a 14.00% APR over a 10-year term is about 120 monthly payments of roughly $155 with no balloon payment. Exact terms and APR are provided in your final disclosures.
How fast can my property taxes be paid?
Decisions are same-day. For residential homesteads, funding follows the state-required 3-business-day rescission period. Loans on non-residential, investment, or commercial property can fund faster.
Is Prime Tax Funding a licensed lender?
Yes. Prime Tax Funding is licensed by the Texas Office of Consumer Credit Commissioner (OCCC) and structures loans under Texas Tax Code §32.06 and Finance Code Chapter 351.
See your Texas property tax loan estimate
Same-day decisions, no obligation, and a clear fee breakdown before you sign. Find out what your monthly payment could look like.