Question 1

Who is actually renting in Tyler, and how durable is that demand?

Accepted Answer

A hospital payroll, not a story. 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.

Question 2

What does Smith County property tax actually cost a non-homestead investor in Tyler?

Accepted Answer

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.

Question 3

How does Tyler's property tax stack compare across Smith County submarkets?

Accepted Answer

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.

Question 4

Can I underwrite short-term rental income on a Tyler property?

Accepted Answer

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.

Question 5

Which Smith County submarket pencils best for a buy-and-hold DSCR deal?

Accepted Answer

On raw gross yield, Whitehouse edges out the field, but 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.

Question 6

Does East Texas oil history create title problems for a Tyler rental purchase?

Accepted Answer

Sometimes, and it is a cheap, 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.

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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