All Forum Posts by: Giovanni Escobar

In Texas, if you're doing that owner financing thing, there's no strict rule saying how much interest you can charge. But, there are these usury laws making sure it doesn't get too crazy. In 2023, if you're going without real estate backup, the most interest you can ask for is 10%. That's the highest allowed for loans without security. Now, if your loan is smart and backed by a first lien on real estate, you get a bit more room—up to 5% above the prime rate, which is at 7.5% right now. That adds up to a max interest rate of 12.5%. It might be a bit of a puzzle, but knowing this stuff helps you figure out the owner financing game.