The Rio Grande Valley has grown steadily on cross-border trade, healthcare and the University of Texas Rio Grande Valley. Rental prices are among the more affordable in Texas, so investors here reach jumbo loan sizes by owning many doors.
In short: LendingStreet finances jumbo DSCR loans from about $1.5M to $5M+ on investment property in McAllen, Edinburg, Mission, Pharr and the rest of Hidalgo County, plus coastal Cameron County, qualified on rent with no W-2s or tax returns. In this market a jumbo balance usually comes from a portfolio or fourplex cluster, and Texas property taxes without a homestead exemption are the line to watch. Max LTV varies by program.
McAllen and Edinburg have large clusters of fourplexes and duplexes built for rental, often several on one street, leasing to medical workers, teachers and UTRGV students. North McAllen and Sharyland have larger single-family homes.
Mission, Pharr and Weslaco add newer subdivisions, while South Padre Island in Cameron County is the region's vacation rental market.
| Property type | Typical areas | Tenant base |
|---|---|---|
| Fourplex cluster | McAllen, Edinburg, Pharr | Medical, education and trade workers |
| Single-family portfolio | Mission, Weslaco, Sharyland | Families |
| Vacation condo or home | South Padre Island | Short-term visitors, where allowed |
A Valley fourplex often trades for less than a single suburban home in Austin or Dallas, so $1.5M+ in debt usually spans several buildings. Investors commonly buy fourplexes in groups from the same builder.
Clusters of identical buildings help underwriting: comparable sales and rents are clear, and the appraisal can lean on the same street.
Medical employers such as the hospital systems in McAllen and Edinburg, the UTRGV School of Medicine and the cross-border trade economy around the international bridges keep demand steady. Many tenants are long-term local families rather than transient renters.
Texas has no state income tax and relies on local property taxes from the county, city, school district, college district, drainage district and others. Investors do not receive the homestead exemption or the homestead appraisal cap.
Check each property's taxing units with the Hidalgo County Appraisal District and budget on the full combined rate. Texas has no transfer tax.
The Valley sits near the Gulf, and hurricanes such as Dolly in 2008 and Hanna in 2020 brought wind and heavy flooding. The flat terrain and drainage system mean that some neighborhoods flood in heavy rain, and flood zone mapping matters.
Coastal Cameron County properties face windstorm coverage questions; South Padre property is in the area served by the Texas Windstorm Insurance Association.
Insurers in the Valley also ask about roof age and construction type. Many fourplexes are brick or block, which can help with wind pricing compared with frame construction.
This example is illustrative and not a quote. An investor refinances six fourplexes, 24 units in all, into one blanket loan. Units rent for about $850 a month on average. The combined appraised value is $2,280,000 and rent totals $20,400 a month. Taxes are budgeted at $4,560 a month and insurance at $1,700.
Run at 75% LTV, the numbers are a $1,710,000 loan, about $11,521 in estimated principal and interest, a total payment around $17,781 and a DSCR of about 1.15x. Run at 65% LTV, they become a $1,482,000 loan, about $9,985 in principal and interest, a payment around $16,245 and a DSCR of about 1.26x. The difference in loan proceeds is $228,000.
Valley rents relative to value are strong, which helps the portfolio clear the minimum even with high Texas taxes. Each fourplex is its own 4-unit property, well within residential limits.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,710,000 | $1,482,000 |
| Estimated principal and interest | $11,521 | $9,985 |
| Property taxes (budgeted) | $4,560 | $4,560 |
| Insurance | $1,700 | $1,700 |
| Total monthly payment | $17,781 | $16,245 |
| DSCR at $20,400 rent | About 1.15x | About 1.26x |
| Equity remaining | $570,000 | $798,000 |
South Padre Island permits short-term rentals with registration and hotel occupancy tax collection, and condo associations set their own rules. Inland Valley cities have fewer STRs and apply standard zoning.
For most jumbo-size files in Hidalgo County, long-term leases are the basis. Check HOA rules in newer subdivisions.
Some fourplex clusters in Edinburg and McAllen share private drives or drainage easements. Title review on a group of buildings goes faster when the plat and any shared-access agreements are pulled early.
The core rules do not change above $1.5M. The property's rent has to cover the full payment, usually at 1.0x or better; you document assets and credit (620 minimum), not income; and you can close in an LLC on a 30-year term. Purchase, rate-and-term and cash-out are all available up to about $5M+.
The differences are in degree. Underwriters look harder at value and rent on a big balance, ask for larger reserves and often cap leverage below the 80% purchase and 75% cash-out levels used on smaller loans. Treat any leverage figure as varies by program until you see a term sheet.
Two routes lead to a large residential balance besides one expensive house: a 5-8 unit building, qualified on all of its rent, or a blanket portfolio loan on five or more rentals with one payment and release provisions. Above 8 units in one building, the loan becomes commercial.
In the Valley, blanket loans on groups of fourplexes are a common path to jumbo size, and release provisions let investors sell individual buildings.
A large loan moves faster when the file is complete on day one.
To get a quote, share the property, the rent and the leverage you want using the form below, or call (877) 298-1001. Our team will show the ratio at a couple of loan sizes so you can pick the structure.
Yes, through a blanket portfolio loan on five or more properties, each with 1-8 units, qualified on combined rent.
Texas investors do not receive homestead exemptions, and multiple local districts levy property tax.
On some programs, using projected short-term rental revenue, if city rules and the condo association allow it.
Yes. Cash-out goes up to 75% LTV on standard programs and is often lower on large balances. Seasoning varies by program; see our cash-out seasoning guide.
No. Our investor loans are business-purpose loans on non-owner-occupied property. We do not finance a home you live in, full time or part time.
It depends on the appraisal, title and how complete the file is. Large balances take more review than standard loans, so starting with a full file is the best way to shorten the timeline.
On some blanket programs, yes. Multi-state portfolio loans can combine five or more rentals across state lines under one note.
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