Rental / DSCR in Frisco

About 3.4%, and a cash-flow pitch on this address does not hold up. As of July 2026, Frisco's Zillow mid-tier home value was $649,173 against a $1,852 typical rent, a 3.4% gross yield. The City of Dallas, by contrast, runs a $309,590 value against $1,605 rent, a 6.2% gross yield, roughly double Frisco's. Prosper, the next city up the tax stack, is worse still at 3.1%. A Frisco DSCR file has to clear on rate, term and reserves, because the coverage is not coming from a rich rent-to-price spread. Run the actual address through the DSCR calculator before you assume the ratio works.

1.675480 per $100 of assessed value on the Collin County side, and you need to confirm which county the parcel is in before you quote it. That total is the 2025 stack for Frisco City with Frisco ISD: Collin County 0.149343, Collin College 0.081220, Frisco City 0.425517 and Frisco ISD 1.019400. Collin County has no hospital district in that layer, which is a real rate advantage over Dallas County's stack. The complication is that Frisco straddles the Collin/Denton county line, and on the Denton side the county layer is 0.185938 rather than Collin's 0.230563, so the same city and school district produce a different bill. We have no sourced combined Denton-side total, so do not assume one. A Collin-side parcel is appraised by Collin Central Appraisal District, which mails 2026 real-property notices April 15, with the statewide May 15 protest deadline applying either way. There is no homestead exemption or 10% cap on investment property, so protest the value every year the market is soft. Pull the parcel's actual county and combination before you run the escrow.

We consider short-term rentals, but Frisco requires a permit first and a nightly pro forma is not the same thing we underwrite as rent. Frisco requires a short-term rental permit for any dwelling rented under 30 days, single-family homes through fourplexes and multifamily units included, registered through the city's Neumo portal with a guest safety checklist and floor plan, and the permit number has to appear in the listing. The fee is $300 to apply and $300 a year to renew, set by Ordinance 2025-09-48 and effective 2025-10-01, and an unregistered short-term rental risks fines including a future registration ban. Owners also collect and remit hotel-motel-STR occupancy tax monthly. Get the permit sorted and the tax remittance current before you lean on nightly revenue; we size the loan on the property's underwritten cash flow, not projected nightly income.

It changes the tenant risk, not the ratio itself. Collin County's median household income was $124,920 in 2024 against Dallas County's $78,910, about 58% higher. DSCR is calculated on the rent the property collects, so that income gap does not move the ratio directly, but it is the offset to Frisco's thin gross yield: a lower-yield Collin County property is generally leased to a higher-income tenant base than a higher-yield Dallas County property, which is a real underwriting consideration on renewal risk and vacancy even though it is not a line in the DSCR formula. Underwrite the rent the lease actually states, and treat tenant quality as a qualitative factor alongside it.

Universal Kids Resort opened July 1, 2026, and it sits in a city that already permits short-term rentals. The park opened at Panther Creek Parkway and the Dallas North Tollway, per the City of Frisco's own theme park page. That is a new hospitality and lodging demand anchor layered on top of a $300-a-year short-term rental permit regime that, unlike neighboring Plano's ban on new single-family short-term rentals, is open and not grandfathering-limited. It is a reason to underwrite the neighborhood's rental durability, not a reason to plug nightly-rate projections into a DSCR file; the loan still qualifies on the property's underwritten cash flow.

At least 20% of the purchase, and the tax stack decides more of the ratio than most buyers expect. Max leverage is up to 80% LTV, so on a $650,000 Frisco purchase that is up to $520,000 from us and $130,000 from you (650,000 x 80% = 520,000). Because Frisco's gross yield runs near 3.4%, the property tax escrow, roughly 1.68% of assessed value a year on the Collin/Frisco ISD combination, is doing more work against your coverage than it would in a higher-yield metro. Confirm the parcel's county and combination, then run the numbers through the DSCR calculator before you commit to a purchase price. Subject to underwriting.

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.

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.

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.

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.

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.

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.