Question 1

Does College Station still cap how many unrelated tenants can share a rental?

Accepted Answer

No, and that changed the room-by-room DSCR math. For decades College Station barred more than four unrelated people from sharing a dwelling. Senate Bill 1567, effective September 1, 2025, stripped that power from home-rule cities near large university campuses: occupancy can now only be regulated by objective space standards, not by who is related to whom, and the council repealed the old ordinance. A 5-bedroom house near campus can now legally house five unrelated students. If you're underwriting a per-bedroom student rental, use bedroom count and square footage, not the old four-tenant ceiling.

Question 2

Do I need to register a College Station rental before we can close the DSCR loan?

Accepted Answer

Yes, and it's cheap, but ignoring it isn't. Every non-owner-occupied dwelling of one to six units in College Station must be registered with the city, whether or not rent is charged: a one-time $90 fee per building, no annual renewal, but ownership or contact changes must be reported within 30 days. Skip it and the penalties escalate fast, from $25 a day once you're 31 days overdue up to $100 a day plus a municipal court summons past 76 days. We'll want to see the registration in place, since an unregistered rental racking up daily fines is a real liability sitting on a property we're lending against.

Question 3

Can I count short-term rental income toward DSCR on a College Station property?

Accepted Answer

Only if it's permitted, and the demand driver is one stadium. College Station has required an STR permit since 2020 plus remittance of the city's 7% hotel occupancy tax: $100 to apply, $100 for inspection, $75 a year to renew, with HOT filings due monthly on the 20th. Game-day demand comes from Kyle Field, which seats 102,733, the largest stadium in the SEC. That drives seven-plus weekends a year of peak nightly rates, but it also means STR income here is lumpy around the football calendar rather than steady, so underwrite the shoulder months conservatively. Run your numbers with the DSCR calculator.

Question 4

Why would I buy in Bryan instead of College Station for a DSCR deal?

Accepted Answer

Because the rent barely notices the county line, but the price does. As of June 2026, College Station's mid-tier home value was about $349,845 against Bryan's $277,011, a roughly 26% gap on otherwise adjacent cities in the same county. Zillow's rent index put College Station at $1,446 a month and Bryan at $1,428, about $18 apart. On a whole-house rental, that combination, similar rent on a meaningfully lower basis, is what tends to produce the stronger DSCR ratio on the Bryan side.

Question 5

How much do property taxes eat into the DSCR ratio here versus Bryan?

Accepted Answer

A little more in Bryan on the rate, but less in dollars. Stacking the 2025 adopted rates with no homestead exemption, a College Station address runs about 1.91% of value (county, city, and College Station ISD combined) and a Bryan address runs about 1.99% (county, city, and Bryan ISD). Because Bryan's typical home value is lower, the actual annual tax bill still comes in roughly $1,150 less than a comparable College Station property. We escrow to the appraisal district's assessed value, not the seller's current bill, so run your DSCR numbers off the CAD record.

Question 6

Is the student housing boom a risk to a DSCR loan near Texas A&M?

Accepted Answer

It's the honest factor to underwrite around, not a reason to avoid the market. Texas A&M's off-campus pipeline led every southern university market as of late 2025 reporting: 3,668 beds under construction, more than 11% of existing off-campus inventory, while the university has also announced a five- to seven-year plan to slow enrollment growth after crossing 80,000 students. New purpose-built towers with pools and shuttle service compete hardest against the commodity rental far from campus. A walkable location and the per-bedroom pricing SB 1567 now allows are the property-level defenses we look for on a student rental deal.

Question 7

What is a DSCR loan, and how do I qualify without tax returns?

Accepted Answer

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Question 8

What rate and terms can I get on a rental loan?

Accepted Answer

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

Question 9

How much can I borrow, and what is the maximum LTV?

Accepted Answer

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

Question 10

What credit score do I need for a DSCR loan?

Accepted Answer

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Question 11

Can I get a DSCR loan on a short-term rental (Airbnb)?

Accepted Answer

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Question 12

Is there a prepayment penalty?

Accepted Answer

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.

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