Are Property Tax Loans a Good Idea?


Many Texas homeowners struggle to keep up with their property tax bills. Unfortunately, state, county, and municipal governments are not doing very much to offer help or relief, so where do these property owners turn? Property tax loan lenders provide a fast and flexible solution, but many homeowners are slow to act, wondering whether property tax loans are a good idea.

If you are having problems meeting your property tax burdens, you have a few options. If you are over the age of 65, a veteran, or disabled, you could qualify for certain exemptions, which would lower your obligations dramatically. If not, there are really only two choices: either you make a payment plan with the county, or you apply for a property tax loan from a reputable lender.

County payment plans do provide a solution, but they are not the most flexible or affordable option. They tend to impose specific payment periods and monthly installments, and you have to accept the terms they offer. If you should default on any of the payments, you are likely to face retroactive penalties. A property tax loan is the smarter, easier and most affordable option.

Why apply for a property tax loan?

There are several reasons why a homeowner may decide to take a property tax loan. Every situation is different, and the burden of property taxes, as well as penalties and interest, can affect each homeowner in various ways. A property owner may seek out a tax loan for any of the following reasons, among others:

To prevent foreclosure: Delinquent property taxes make foreclosure a real possibility, and many homeowners seek the fast relief of tax loans to prevent this impending risk and cycle of debt from becoming a reality.

Avoid penalties and other fees: Since tax loans enable the immediate, full payment of a homeowner’s property tax account, the exorbitant penalties, interest, and other fees that tend to accrue can all be eliminated. Tax lending company’s do charge interest, but this is much more affordable than the spiraling debts that can quickly build up on delinquent property tax accounts.

To give a clear idea of what happens when property tax bills are left unpaid, consider the following example. Let us say that you receive a $5,000 tax bill in January. If you fail to pay, the tax authority will impose a penalty on you as of February 1st. Let’s say this penalty is 6% of the total. At the end of February, the bill will have increased to $5,300. For every month, it continues to go unpaid, 1% interest will be charged until June 30th. From July 1st, and an additional 2% penalty will be levied. By the end of December, the unpaid bill will have increased to $7,400 - an increase of 48%.

The longer you leave it, the higher that total will climb and the more difficult it will become to pay the debt. Finally, your failure to pay could lead to foreclosure on your property.

You can make a payment arrangement with your tax authority, but these can be restrictive. It will take you a long time to pay off the debt and you will pay an unnecessary amount of interest. A tax loan is simply the easiest and most cost-effective solution.

Maintaining cash flow: Even if taxpayers have the cash on hand to pay their property taxes, the payment may drain their resources, leaving them without the liquidity they need for other things. A property tax loan can help them cover the debt, while maintaining their cash flow.

Property tax lenders are there to partner with you and give you the help you need to prevent the accumulation of unmanageable debts. As soon as the lender approves the loan, the debt with the tax authority will be settled in full, meaning the tax lien imposed on your property will pass to the lender, and your account with the local tax authority will be paid in full, releasing you from any obligation you have to them for that particular tax year.

Tax lenders do not require upfront payments and do not impose difficult terms. You will be able to pay back the loan on a time scale that suits you, with monthly payments that you can afford. Compared to the payment plans you could potentially make with your county authorities, property tax loans feature lower monthly charges and offer far greater flexibility.

Consider the options. Either you continue to default on your tax payments, leading to spiraling debt and probably foreclosure, or you arrange a payment plan with the county, which locks you into a rigid repayment schedule for several years. Alternatively, you can apply for property tax loan, which will eliminate your debt immediately, and enable you to manage the repayments in a way that makes sense to you financially.


Is a tax loan really a good solution?

Regardless of which of the above situations are applicable to a particular taxpayer’s situation, the question most people ask is whether applying for Texas property tax loan from American Finance & Investment Co., Inc. (AFIC) is really worth it. Here are the main reasons why the answer is a decisive ‘yes.’

Property tax loans instantly remove the burden of debt: Homeowners wishing to prevent foreclosure, avoid unaffordable fees, and maintain their cash flow can find instant relief through a property tax loan.

The process is fast and simple: The process is straightforward and doesn’t include an application. There are no credit checks, no money down, and minimal paperwork. A taxpayer can fill in AFIC’s online form and receive a loan in just a few minutes.

The terms are flexible: County and municipal administrations do not offer homeowners any negotiable terms on their tax bills. They simply have to pay and are charged penalty fees and interest if they don’t. On the other hand, a tax loan from AFIC offers loan payment terms that are suited to the taxpayer’s budget. Each borrower pays back the loan in installments with monthly payments they are comfortable with. Repayment of the principal amount can even be deferred for up to 24 months.

AFIC offers a 30-day rate match: Within 30 days after a client closes a loan agreement with AFIC, we will match any competitor’s terms or allow the client to move to that competitor, at no additional charge.

AFIC is a trusted brand: AFIC has been providing financial assistance in Texas since 1946 and now focuses primarily on property tax help. So, any property owner who takes a loan from AFIC will become one of over 75 years’ worth of happy clients.

Get Help from A Property Tax Lender that You Can Trust

AFIC’s property tax loans can provide fast, affordable relief from the often unmanageable demands of county and city tax offices throughout the state. You can receive an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your property tax debt and offer you the following benefits:

  • Quick and completely online process

  • No money down

  • No credit check

  • Free 30-day rate match

  • Match competitors and beat their rate by 1%

  • Avoid high penalties and foreclosure

We pride ourselves on finding solutions to suit the unique needs of our clients. We are a family business that has been helping Texas property owners with their tax commitments for over 70 years. We are proud of our uninterrupted, complaint-free track record and excellent reputation with local homeowners and the Better Business Bureau. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.

Ernest Eisenberg

Ernest Eisenberg, President of American Finance & Investment Co., Inc. (AFIC), brings a wealth of expertise in non-traditional financing, including property tax loans and non-bank mortgage solutions. His vision is characterized by a commitment to offering flexible financing solutions to Texas property owners.

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APR between 8.0% and 25.0% for loan terms between 12 and 120 months. For example 8.5% APR, $25,000 loan, $750 in Closing Costs, 120 Monthly Payments of $303.32.


If you are over 64 or disabled, don’t get a property tax loan, contact your tax office about a deferral.

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