Rental / DSCR in Sherman

Denison runs the highest gross yield in the county, at roughly 7.7%, against about 6.1% in Sherman and 5.1% in Van Alstyne. That is a $1,439 monthly rent on a $225,218 mid-tier value in Denison, versus $1,291 on $255,418 in Sherman and $1,846 on $430,337 in Van Alstyne, all as of July 2026. This is arithmetic on Zillow's value and rent indexes, not a cap rate (it carries no expense data), but it shows the DSCR answer here is a submarket choice inside one county, not a metro-wide number. Run the property's own rent and payment through the DSCR calculator before assuming a county average applies.

The tax stack, not the price. A Grayson County parcel pays the countywide base (0.451080 per $100) plus a city rate plus a school rate. Denison's total stack is 2.318114 per $100, the heaviest in the county, against 2.193280 in Sherman. A Van Alstyne lot inside one of the county's newer municipal utility districts adds a full extra point of value on top of its own 2.179593 stack, roughly 3.18% of assessed value in total. Pull the parcel's own Grayson Central Appraisal District account before sizing debt service; a city name alone does not tell you the carry.

No. The City of Sherman's Residential Rental Property License and Standard Ordinance, adopted 2025-03-17, applies only to multi-family complexes. In the city's own words, "single-family rental units are exempt from this ordinance at this time." A multi-family hold is a different question: it must be registered before the certificate of occupancy issues and renewed every year by January 15 through the city's Self Service Portal. Confirm which category a specific property falls into before you assume either rule applies.

Short-term rentals are considered on a case-by-case basis, and the local permit picture varies enough that it changes the underwriting conversation. Sherman requires an STR owner or operator to register with the city within 30 days of commencing business, but the city's page does not publish a permit fee, a density cap, or a zoning restriction, and we could not source any of them, so do not assume either that one applies or that none does. Denison is actively closing an STR tax gap: local reporting from August 2026 put compliance among its roughly 122 to 123 short-term rentals at about 40%, and a proposed ordinance for automatic platform tax collection with Airbnb and Vrbo was on the city council's September 8, 2026 agenda, with collection expected in early 2027 if adopted. An STR pro forma is not the same as a DSCR pro forma; talk to your loan officer about how nightly income is treated on a specific file.

20% at a minimum. We go up to 80% LTV, so on a $225,218 Denison mid-tier home, that is up to $180,174 from us and $45,044 from you (225,218 x 80% = 180,174). Denison's rent-to-value ratio is the highest in the county, so the same down payment tends to clear DSCR more easily there than in a higher-priced, lower-yield submarket like Van Alstyne or Gunter. Subject to underwriting.

Because Howe's rent index and its value index are describing two different housing stocks. Howe permitted 107 new single-family homes and 300 new apartment units in 2025 alone, in a town of only a few thousand people, so its $1,825 observed rent (July 2026) is measured heavily against new-build product while its $241,718 value index still reflects a mix that includes older stock. Do not compute a simple yield off those two numbers the way you would for Denison or Sherman. Get a current rent comp on the specific unit before underwriting a Howe DSCR file.

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.