DSCR loans for New Braunfels investors, built around the county line.
Hold your rentals with financing that underwrites the asset, not just you. DSCR as low as 0.75, rates from 5.5% interest-only, and 30-year fixed options for single properties or whole portfolios. New Braunfels sits in two counties with two different tax stacks, and the corridor around it runs a wide gross-yield spread depending on which side of the line the parcel sits. Business-purpose only, and rates and structure are set in underwriting.
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
No tax returns or personal income docs in most cases. We qualify on the property's cash flow, so you can scale your portfolio without the paperwork drag of conventional lending.
Where in the New Braunfels area does a DSCR deal actually cash flow best?
The county matters more than the city. On the same Zillow index for July 2026, Guadalupe County ran a 6.85% gross rental yield against Comal County's 4.25%. Inside that spread, Schertz posted 7.38%, Seguin 6.59%, New Braunfels 5.35%, and Canyon Lake 5.24%. A DSCR that does not clear at a given leverage in Canyon Lake can clear at the same leverage in Seguin. Run the parcel-specific numbers, not a metro average, with the DSCR calculator. If your income documents cleanly, compare the numbers against a conventional investment loan before you commit to a structure.
Can I use short-term rental income to qualify for a New Braunfels DSCR loan?
Not on a typical residential purchase inside city limits. New Braunfels Code section 144-5.17 prohibits short-term rentals in every residential zoning district, and permits them only in the C-4, C-4A and C-4B commercial districts, or elsewhere with an approved special use permit. That ban has now survived a federal court challenge: the Fifth Circuit affirmed it against due process and equal protection claims on June 18, 2026 in Marfil v. City of New Braunfels. Check the parcel's zoning before you assume a nightly-rate pro forma. If the property is not in one of those commercial districts and holds no special use permit, we underwrite it as a long-term rental.
Enough to decide the deal, and it depends on the county. A New Braunfels parcel can sit in Comal County or Guadalupe County, and each has its own rate: 0.305015 and 0.330400 per $100 of taxable value respectively, before city, school district and any MUD or WCID overlay. Unincorporated Comal County carries no city tax at all, roughly 1.38 per $100 total, which is the cheapest carry in the corridor. Some MUD parcels (Meyer Ranch, Park Place, Anthem, Springhollow) add another 0.95 to 1.20 per $100 on top of the base stack, pushing a total near or above 3.0. Investment property gets no homestead exemption. Ask for the parcel's actual tax certificate before you lock a DSCR assumption, not a corridor average. Financing several of these doors at once? Our portfolio loan underwrites each parcel's stack individually rather than a blended guess.
Do I have to register my rental with the city before I can lease it?
In San Marcos you do. Everywhere else in the corridor, ask the city before you sign a lease. Our research turned up no long-term rental registration or inspection ordinance for New Braunfels, Seguin, or unincorporated Comal County, but not finding one published is not the same as confirming there is none, so verify with the city or county that governs your parcel. San Marcos is the one place in this corridor where the requirement is documented: every long-term rental inside San Marcos city limits must be registered under City Code section 34-821, mandatory since January 1, 2021, with rentals to the owner's family members exempt and one filing covering an entire multifamily complex. If your target property is in San Marcos rather than New Braunfels proper, budget for that filing on day one.
Should I expect my insurance quote to move my DSCR ratio much?
Ask for a bound quote before you lock the number, and expect it to track hail, not the news. Comal County's 2025 average homeowners premium ran $2,803 and Guadalupe County's $2,659, both roughly 20 to 24 percent below the $3,506 Texas statewide average. But the peril that drives your renewal is wind and hail: Hays County paid $2,603 per policy in wind losses in 2024 alone after a severe hail season, against $510 in Comal and $329 in Guadalupe the same year. There is no hurricane exposure this far inland, so budget for a 2% wind and hail deductible and expect pricing to move with last season's storms rather than a national trend. On a thin DSCR file, a few hundred dollars of premium swing can move you across the qualifying line.
How much do I need to put down on a New Braunfels DSCR rental?
Roughly 20% of the purchase, plus closing costs and reserves. Leverage runs up to 80% LTV, so on a $350,000 New Braunfels purchase that is up to $280,000 from us and $70,000 from you (350,000 x 80% = 280,000). Whether that leverage clears depends on the county: Guadalupe County ran a 6.85% gross rental yield in July 2026 against Comal County's 4.25%, and a thinner yield often needs a larger down payment to hit the ratio. Subject to underwriting.
Is there a minimum loan size for a New Braunfels DSCR loan?
Yes. This program runs from $100,000 to $3 million. A single door in Seguin or Schertz normally clears the floor on its own. If the parcel you want comes in under $100,000, the loan size is the constraint, not the rent, and the usual fix is to package it with other doors rather than shrink the loan. Subject to underwriting.
If I sell a New Braunfels rental early, what does the prepay look like?
Prepay structures are flexible, and you choose one at the term sheet. That choice carries more weight here than in a one-county market. A Comal County door bought into a 4.25% gross yield is often held for appreciation and sold sooner, while a Guadalupe County door at 6.85% is usually a long hold. Tell us the intended hold before we structure it, because a short prepay and a long one do not price the same. Subject to underwriting.
More Rental / DSCR questions, answered on the program page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-22.
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