General Questions

Will a new lien be placed on my property?

No. Your property already has a lien placed on the property from your county local taxing authorities. This lien automatically attaches to all property on January 1st of each year to ensure payment of current year's taxes. This lien is simply transferred from the county to Capitol once Capitol pays your taxes.

Can my taxing authority foreclose on my property if my property taxes are delinquent?

Yes. Your taxing authority can file a delinquent tax suit in court after your taxes become delinquent. Because the taxing authority automatically imposes a tax lien on your property each year, the court has the power to foreclose on your property to pay the tax lien. The longer your taxes go unpaid, the more likely you are able to be sued.

What is the total amount of interest, penalties, and fees that a taxing authority will charge if I am delinquent on my property taxes?

As soon as your taxes are delinquent (February 1st), the taxing authority will charge 7% in interest and penalties. In most counties, the rate increases 2% per month until July 1st, when the taxing authority charges a collection fee of 20%. Therefore, property taxes delinquent on July 1st have incurred 38% in interest, penalties, and fees - and the rate increases each month, culminating at between 39% and 44% just in the first year of delinquency!

The following chart summarizes the typical county charges.

Letting Capitol pay your property taxes.

Can I enter into a payment plan with my taxing authority?

Possibly. Capitol Tax encourages you to contact your taxing authority to see if it offers payment plans. However, under Texas law, taxing authorities cannot enter into a payment plan extending more than one or two years. Additionally, the taxing authorities may require a large cash down payment before placing you on a payment plan. Capitol Tax can range up to ten years - and that means lower monthly payments for you. Most counties require a down payment; Capitol requires no down payments.

Does my taxing authority provide any exemptions for property taxes?

Possibly. Capitol Tax encourages you to consult with your local taxing authority to see if you are eligible for any exemptions. Exemptions may be issued for members of the armed forces, disabled persons, persons over 65 years old, and homestead property. In fact, Capitol will not make loans to persons eligible for exemptions that would entitle them to interest rates lower than the rates we offer.

What makes Capitol unique?

Capitol is unique for many reasons including exceptional customer service, flexibility, low rates and fees, and quick closings-to name just a few.

There are many other reasons Capitol Tax is unique - a Capitol Tax consultant will gladly discuss them with you (or click here to read more).

Process Questions

How do I apply for a payment plan from Capitol Tax?

Capitol Tax offers two quick and easy ways to apply for a property tax plan. First, you can call our office at (800) 397-4750. Second, you can apply on our website.

What information do I need when I call?

Very little.  When you call you will be asked for basic information about the property and yourself,  (Requirements). We will look up the additional information we need.

How long will it take for approval?

Not long.  In fact, most of our borrowers are approved the same day and over the phone. 

If we are approved, how soon until we can close on the payment plan?

Capitol can close your plan within 1 or 2 days of your initial call. We are legally required to wait 3 days from your closing to pay your taxes. We can pay your taxes in as soon as 4 days from your initial call. We will pay your taxes as soon as possible to avoid additional fees, charges or even foreclosure.

What types of property can Capitol Tax help?

Capitol makes property tax plans to owners of any type of real estate on which property taxes are levied, including residential properties, commercial properties, investment properties, and vacant or undeveloped land.

Will my poor credit history affect my ability to obtain a Capitol property tax plan?

Not at all. Capitol Tax even offers plans to property owners with previous bankruptcies. Capitol understands unforeseen circumstances might affect our customers' credit history and strives to work with our customers to find a suitable program.

Do your tax consultants speak Spanish?

Of course. Capitol realizes many of our borrowers feel more comfortable speaking in their native language - Spanish. That is why all of our staff is bilingual and can answer your questions in Spanish.

If I own several properties, can I get a tax payment plan for all delinquent taxes, interest, and penalties?

Yes. Capitol can fund taxes money for multiple properties. The plans are flexible and structured to fit your needs. And for your convenience, we can schedule the closing for all your properties at the same time.

Can I apply for tax plan before my property taxes are delinquent?

Yes.  You can apply at any time.  If you are an existing customer, please call us to discuss your options once your new property taxes become due. If you are a new customer, Texas law may prevent us from funding taxes of new customers before the taxes are actually delinquent (after January 31st). Beware of other lenders who claim otherwise.

Can I get a plan for current taxes and delinquent taxes from past years?

Definitely. Capitol Tax will immediately pay off all current and delinquent taxes, penalties and interest, as well as any collection or attorney's fees.

If I already have a plan with Capitol Tax, can I roll in my taxes for this year's taxes?

Yes. Capitol will add the amount of your current taxes to your existing plan so you continue to make one low monthly payment.

Can I get a Capitol property tax plan for taxes on personal property, federal income taxes, or for other purposes?

No. Capitol specializes in property taxes only.

Is there an application fee?

No. Our borrowers pay no application fee or any other up-front, out-of-pocket expenses.

What if I change my mind after one closing?

Yes. If your property is a homestead property, Texas law gives you a three-day right of rescission to cancel your documents.

Can I get a property tax payment plan if I have a mortgage or an existing loan on my property?

Absolutely. Many of our borrowers have existing loans on their properties.

Fee and Term Questions

How much does it cost to apply for a loan with Capitol?

$0.  We have no application fee or any other out-of-pocket fees.  Unlike some of our competitors, we don't believe in taking your money just so you can talk to us.

What up-front costs do I pay for a Capitol Tax payment plan?

None.  We designed our plans to minimize monthly payments and to eliminate any out-of-pocket, up-front costs to our borrowers.  Therefore, we can finance all costs (e.g., recording fees, title search expenses, origination fees, etc.) so that our borrowers pay nothing at closing.

How much are the closing fees?

We strive to have the lowest fees in the industry.  In fact, we guarantee if you find another licensed property tax company with the same interest rate and lower fees, we will beat the competitor's fees by $100.  This guarantee helps you save money. 

Our fees will vary based on a variety of factors and the complexity of underwriting.

Can I determine the length of my property tax plan?

Yes.  Our plans are unique because we work with our borrowers to find the plan that best fits their budget and needs.

How long are the terms?

Typically between 3 and 10 years - depending on what is best for the customer and what the customer wants.  Unlike some competitors, Capitol doesn't have a set term or needlessly stretch the length of the plan out.  Although longer terms mean lower monthly payments, that also means that customers will be repaying the plans for longer than necessary.

What interest rate does Capitol Tax charge?

Our interest rates vary between 12% and 18% -- much lower than you would pay the county.  And your interest rate will be fixed for the life of the plan - even when national interest rates rise.

We also guarantee to match any competitors' interest rate and fees. Rate Match Policy

Payment Questions

May I prepay my loan?

Of course.  In fact, there are no pre-payment penalties on residential plans.  Capitol encourages our borrowers to prepay - it saves them money in interest charges.

When are my payments due?

Typically on the 1st or 15th of every month.  But we will work with our borrowers to find a payment date that meets their schedule.

How do I make my monthly payments?

Our borrowers can make their monthly payment in several ways.  The best way is to have Capitol automatically debit their checking accounts each month.  Or they can make their monthly payment by check, cashier's check, or money order.  For the safety of our borrowers and employees, no cash is accepted.

Will Capitol Tax foreclosure on my property if I miss a payment?