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Program 02
Rental / DSCR in Tyler
In Tyler, DSCR loans qualify on the rent.
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. Tyler is a slow, healthcare-anchored market with a genuinely light tax stack for Texas. Business-purpose only, and rates and structure are set in underwriting.
0.75
min DSCR
5.5%
rates from
30-yr
fixed avail.
80%
max LTV
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.
Who it's for
Buy-and-hold investors
Single rentals and portfolios
Short-term rentals considered
Rate/term and cash-out refi
Typical terms
Loan amount$100K to $3M
Max leverageUp to 80% LTV
DSCRFrom 0.75
CreditFrom 640
Term30-yr fixed / 5-7-10 ARM
RateFrom 5.50% IO*
PrepayFlexible structures
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Rental / DSCR in Tyler, answered.
Who is actually renting in Tyler, and how durable is that demand?
Hospital and clinic payrolls, and they are the metro's largest employment base. Education and health services employment ran 27,700 in June 2026, 22.7% of the metro's 122,100 total nonfarm jobs, the largest supersector in Smith County. CHRISTUS Trinity Mother Frances and UT Health East Texas anchor that base, and 230 resident physicians train across the UT Health East Texas system, tied to the UT Tyler School of Medicine, East Texas's first. Residents are a recurring, credit-thin, three-to-seven-year rental cohort that arrives every July, which is a steadier tenant story than most small-metro anchors offer. Run your own rent assumption against the property with the DSCR calculator before you lock a number.
Sources: uttyler.edu, careers.christushealth.org
What does Smith County property tax actually cost a non-homestead investor in Tyler?
About 1.63% of assessed value a year inside the City of Tyler, with no homestead relief because you are not living in it. The 2025 Texas Comptroller rate file works out to county 0.364231, city 0.236452, Tyler ISD 0.845000 and Tyler Junior College 0.185068 per $100, for a stack of roughly 1.630751. Buy in unincorporated Smith County inside Tyler ISD instead and there is no city rate at all: county plus Tyler ISD plus the local emergency services district plus the junior college works out to about 1.463164. That unincorporated stack is genuinely light for Texas. Every rate here is tax year 2025; Smith County was still adopting 2026 rates as of mid-August 2026, so confirm the current year before you close. Talk to your CPA about how the carry lands on your own return.
Sources: comptroller.texas.gov
How does Tyler's property tax stack compare across Smith County submarkets?
The spread between suburbs is worth pricing before you pick a lot. Winona runs lightest at about 1.592, Tyler about 1.631, Lindale about 1.664 and Troup about 1.695 per $100 of value. Arp climbs to about 1.977 and Whitehouse to about 2.047, but Bullard is the outlier at roughly 2.166, about 53 basis points a year heavier than Tyler, driven mostly by Bullard ISD's 1.2469 rate against Tyler ISD's 0.8450. On a $250,000 basis that gap is roughly $1,350 a year in tax between two houses 15 miles apart. Also worth knowing: Tyler charges the maximum legal Texas local sales tax, 8.25% total, so the low property tax rate is a shifted tax, not free money. Program terms are in DSCR rental loan.
Sources: comptroller.texas.gov
Can I underwrite short-term rental income on a Tyler property?
The city's code of ordinances has no short-term rental rule to comply with, but that is not the same as no obligation at all. A full-text search of the Tyler Code of Ordinances (current through the July 2026 codification) returned zero results for "short term rental," "short-term rental" and "vacation rental": no STR permit, no registration, no density cap, no STR-specific occupancy rule. Tyler does levy a 9% city hotel occupancy tax, and its "hotel" definition is broad enough that it may reach a whole-home rental; confirm hotel occupancy tax liability with the city before you model nightly income. This covers the City of Tyler code only. Lindale, Whitehouse, Bullard, Troup, Arp, Winona and unincorporated Smith County were not searched, so do not assume Tyler's posture carries over to those suburbs.
Sources: codelibrary.amlegal.com
Whitehouse rents $1,663 against a $290,533 value. Does it out-yield the rest of Smith County?
On raw gross yield it edges out the field at about 6.87%, though the whole county clears 6%. As of June 2026, Tyler's $1,372 city-level rent against a $255,430 mid-tier home value works out to about 6.45% gross yield; Whitehouse runs about 6.87% on a $1,663 rent against $290,533 in value, and it also posted the county's best rent growth at 5.7% year over year; Lindale runs about 6.15% on a $1,536 rent against $299,908. None of that is a cap rate; it is rent over value with no expenses netted out, so run your own operating numbers. Note the broader trend across every submarket: values were down 1.0% year over year metro-wide while rents rose 1.2%, a market where the DSCR ratio is drifting in the borrower's favor rather than against it.
Sources: files.zillowstatic.com
Does East Texas oil history create title problems for a Tyler rental purchase?
Sometimes, and it is a lower-cost, known fix, not a reason to walk. The East Texas Oilfield reaches into southeastern Smith County, and under Texas law the mineral estate is dominant over the surface, so a severed mineral reservation in the chain of title is a real closing item here. Read the title commitment's Schedule B mineral exception before you close and ask whether the seller is reserving under TREC form 44-3. Where minerals are excepted, the Minerals and Surface Damage Endorsement (Form T-19.2) is available on a promulgated rate: $50 on an owner's policy, $0 on a loan policy. No data exists on what share of Smith County parcels actually carry severed minerals, so treat this as a diligence step to run on every file, not a probability to price in.
Sources: tshaonline.org, rrc.texas.gov, tdi.texas.gov
On a $255,000 Tyler rental, what is the down payment and the tax escrow?
$51,000 down at 80% LTV, plus roughly $4,158 a year of tax escrow. Leverage runs up to 80% LTV, so on a $255,000 Tyler purchase that is $204,000 from us and $51,000 from you (255,000 x 80% = 204,000), before closing costs. Budget the tax escrow separately: roughly 1.63% of assessed value inside the City of Tyler at 2025 rates with no homestead relief, about $4,158 a year on that basis (255,000 x 1.630751% = 4,158). Loans run $100,000 to $3M on 30-year fixed or 5, 7 and 10-year ARM terms. Subject to underwriting.
Sources: files.zillowstatic.com, comptroller.texas.gov
Do I need 640 credit if the Tyler property's rent already covers the payment?
Yes. DSCR starts at a 640 score, and strong rent coverage does not remove that floor. What the rent does is carry the qualifying: the file is measured on the property's income, with DSCR from 0.75, so no W-2s, pay stubs or tax returns. Tyler gross yields run about 6.1% to 6.9% across Tyler, Whitehouse and Lindale, and rents rose 1.2% year over year while values slipped, which pushes the ratio the borrower's way. If you are under 640, tell us early and we will look at which program actually fits. Subject to underwriting.
Sources: files.zillowstatic.com
Is a $170,000 Arp rental too small for a Tyler DSCR loan?
No. DSCR loans start at $100,000 and run to $3M. Every Smith County submarket clears that floor on Zillow's June 2026 values, from Arp at $170,191 through Tyler at $255,430 up to Hideaway at $351,357. At 80% LTV a $170,000 Arp purchase is a $136,000 loan (170,000 x 80% = 136,000), still well above the minimum. Subject to underwriting.
Sources: files.zillowstatic.com
More Rental / DSCR questions, answered on the program page
Resources
Guides for Rental / DSCR
Rental / DSCR · 5 min read
What Is a DSCR Loan? How Investors Qualify on Rental Income
Read the guide Strategy · 6 min read
Financing the BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat
Read the guide Rental / DSCR · 5 min read
DSCR vs Conventional Loan: Which Is Better for Investment Property?
Read the guide Rates & Costs · 5 min read
Hard Money Loan Rates and Costs, Explained
Read the guide More in Tyler
Other programs in Tyler
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About the local figures on this 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 2026-08-13.
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