Waco sits on I-35 between Dallas-Fort Worth and Austin, with a university rental market, growing suburbs and a tourism draw downtown. Texas has no state income tax, but the property tax bill is what decides your DSCR.
In short: Our top pick for Waco is LendingStreet. We qualify rentals on the property's rent with no W-2s or tax returns, LLC borrowers are standard, and loans start at $150,000 with no stated maximum. Purchases go up to 80% LTV and cash-out up to 75% LTV, with 30-year terms, across McLennan County and Texas.
For Waco rentals, LendingStreet offers one DSCR program that handles purchases, rate-and-term refinances and cash-out. The rent qualifies the loan, so self-employed investors and growing portfolios are not held back by tax returns. LLC borrowers are standard, the standard minimum DSCR is 1.0x with sub-1.0 programs available, and the minimum credit score is 620.
Waco renters include Baylor students and staff, healthcare and manufacturing workers, and families moving into newer subdivisions in Hewitt, Woodway, Lorena and China Spring. LendingStreet's DSCR loans let investors qualify on that rent, and the sub-1.0 programs give options when Texas taxes squeeze the ratio.
Whether this is your first Waco rental or your tenth, the next step is the same: tell us about the property using the form below, or call (877) 298-1001 to talk it through.
If you are weighing CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital for a DSCR loan for investors in Waco, TX, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Near Baylor, older homes and small multi-unit buildings lease to students, often on academic-year leases. Castle Heights, Sanger Heights and the neighborhoods north of downtown have early and mid-1900s homes that investors renovate. Downtown and the Elm Avenue area have seen new investment tied to tourism.
Hewitt, Woodway, Robinson, Lorena and China Spring offer newer single-family homes with family tenants and higher rents. Bellmead and Lacy Lakeview, to the east, have lower prices.
Here is a fair, general look at how LendingStreet compares with the lender types Waco investors most often call. Terms at banks and private lenders vary, so ask each one directly.
For a buy-and-hold rental, the LendingStreet column lines up with what most Waco investors are actually asking for.
| What investors need | LendingStreet | Typical local bank or credit union | Typical hard money lender |
|---|---|---|---|
| How you qualify | On the property's rent; no W-2s or tax returns | Often requires tax returns and a debt-to-income review | Based on the deal; built for short holds |
| Borrow in an LLC | Standard | Varies; some lend to individuals only | Common |
| Purchase leverage | Up to 80% LTV | Varies by bank | Varies; short-term only |
| Cash-out refinance | Up to 75% LTV | Varies; may require long seasoning | Not a long-term option |
| Loan term | 30-year terms available | Varies; shorter terms are common | Usually short-term only |
| Loan size | From $150,000, no stated maximum | Varies by bank | Varies |
| Where they lend | All 50 states and DC | Usually a local footprint | Usually local or regional |
Texas funds local government and schools largely through property taxes, and a Waco-area home can be taxed by the county, the city, the school district and other districts. Homestead exemptions apply only to a primary residence, so an investor's bill is often higher than the seller's. Look up each taxing unit on the McLennan County Appraisal District record and budget on the full rate.
Texas has no state real estate transfer tax, which helps closing costs. Title insurance premiums in Texas are set by the state. Central Texas hail and severe storms keep insurance premiums firm, so get a quote that reflects roof age and the wind and hail deductible.
Waco regulates short-term rentals with its own registration and zoning requirements, and hotel occupancy taxes apply to nightly stays. Rules differ in Woodway, Hewitt and other nearby cities, and many HOAs ban rentals under 30 days. Confirm the rules for the specific address before counting on short-term income.
Most Waco loans are qualified on long-term leases. Where a short-term rental is legal, some LendingStreet programs can use projected short-term revenue.
This example is illustrative and not a quote. An investor buys a newer Hewitt home for $285,000 that leases for $2,250 a month. With no homestead exemption, taxes are budgeted at $520 a month, and insurance is $190.
At 80% LTV the loan is $228,000, estimated principal and interest is about $1,517 on a 30-year term, and the total payment is about $2,227, for a DSCR of about 1.01x. At 75% LTV the loan is $213,750, the payment is about $2,132, and the DSCR rises to about 1.06x, with about $14,250 more down. Taxes alone are about a third of principal and interest here.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Loan amount | $228,000 | $213,750 |
| Estimated principal and interest | $1,517 | $1,422 |
| Property taxes (monthly) | $520 | $520 |
| Insurance (monthly) | $190 | $190 |
| Total monthly payment | $2,227 | $2,132 |
| Monthly rent | $2,250 | $2,250 |
| DSCR | About 1.01x | About 1.06x |
A purchase can go up to 80% LTV. A rate-and-term refinance can go up to 80% LTV on some programs, which helps when a higher-cost loan is coming due. A cash-out refinance can go up to 75% LTV, and the seasoning rules vary by program.
Waco investors who renovate older homes near downtown often refinance into a DSCR loan once the property is leased. Owners of newer suburban rentals use cash-out to fund the next purchase, keeping a close eye on the tax line.
A good lender will answer these clearly and early. Ask each one:
Here is how LendingStreet answers the list: purchases to 80% LTV, rate-and-term to 80% on some programs, cash-out to 75%, a 1.0x standard minimum DSCR plus sub-1.0 programs, LLC borrowing as standard, seasoning that varies by program, and larger loans reviewed with leverage that varies by program. The form below is the fastest way to get your numbers.
LendingStreet is our top pick for Waco. Investors choose it because there are no tax returns to qualify, LLCs are standard, and leverage goes up to 80% LTV on purchases and 75% on cash-out, with 30-year terms available.
Texas relies heavily on property taxes, and investors do not get homestead exemptions. The tax line is often the second-largest part of the payment, so it moves the DSCR more than in many states.
Yes, when it is a legal rental with leases in place and market-supported rent. Confirm occupancy limits for unrelated tenants.
Yes. LendingStreet finances Waco rentals, along with investment properties across Texas and in all 50 states and DC.
Only where the property can legally operate as a short-term rental under city and HOA rules. Where it can, some programs qualify on projected revenue.
Yes. We lend throughout McLennan County, across Texas, and in all 50 states and DC.
Get a quote with the form below or call (877) 298-1001. Have the address, price and rent ready.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.