Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 · iQRATE Mortgages, NMLS 1862492 · Licensed in Nevada, California, Texas and Florida · Last updated: November 10, 2026.
A DSCR loan lets an Abilene rental qualify on its rent, not your personal tax returns. We help investors compare DSCR programs for houses in Taylor County. That includes nearby communities such as Tye, Impact, Buffalo Gap, and Merkel. It also helps out-of-town owners, including military families near Dyess Air Force Base, who keep a West Texas house as a rental. This is not a commitment to lend.
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5.0 stars from 89 reviews on Experience.com (November 2026) · Read David's reviews on Experience.com
Part of our Texas mortgage broker coverage. See also Texas DSCR loans, DSCR loans, and investor loans.
Abilene DSCR loan facts at a glance
| Item | What it means on an Abilene file |
|---|---|
| How you qualify | The property's rent is compared with PITIA (principal, interest, taxes, insurance, and HOA or assessments) |
| 2026 one-unit limits, Taylor County | $832,750 conforming (FHFA floor) and $541,287 FHA (HUD CHUMS floor). These are not a DSCR cap. |
| Property tax | Texas has no state property tax. Local units set the rate. Count any special district on the bill in the monthly tax line. We do not invent an Abilene citywide rate. |
| Transfer tax | Texas has no state or local real estate transfer tax. Title insurance premiums are set by the Texas Department of Insurance. |
| Insurance | Get landlord insurance early, including any wind or hail deductible that affects the premium. Add flood insurance if the FEMA map requires it, and count the full premium in PITIA. |
What a DSCR loan is, and how the ratio works
DSCR means debt-service coverage ratio. Lenders divide the accepted monthly rent by the monthly housing payment. That payment is PITIA: principal and interest, property tax, insurance, and HOA or special assessments. A result of 1.00 or higher means the rent covers the full payment. A result under 1.00 means it does not. Some programs still allow a ratio below 1.00 when the equity and reserves are strong. Others want a cushion above 1.00. The contract and the lender's overlay control that point.
In my work as a broker, I look at the entire payment, not just the note rate. I've seen files stall because insurance or a tax line was left out of PITIA. We fund DSCR purchases and refinances this way in markets where we already close, and we use the same method on an Abilene rental.
A DSCR loan is not a conventional loan and not an FHA loan. It is a non-QM investor program. Many DSCR lenders want around 20% down on a purchase. Credit score, reserves, and prepay rules still matter. Days to close often land inside of 30 days when the appraisal and insurance are ready. This is still not a commitment to lend.
Why Abilene investors use a DSCR loan
Abilene is the center of its own metro in Taylor County, with Jones County and Callahan County also in the Abilene MSA. Dyess Air Force Base, Abilene Christian University, Hardin-Simmons University, and McMurry University support a mix of long-term rentals. Some investors buy a house for a military family or a student household and later keep it as a rental after a PCS or a graduation. We shop more than 100 wholesale lenders on complex files instead of one bank's menu.
Self-employed investors, out-of-state buyers, and owners with several rentals often prefer a DSCR file because it starts with the lease, not a two-year tax return. A bank-statement loan is a different path when you still want to qualify on deposits. See our bank statement loans page if that fits better. FHA and jumbo are different programs too; see FHA loans and jumbo loans.
We work Abilene files from our Las Vegas office and close with local Texas escrow and title. We do not claim an Abilene branch. Licensed in Texas under company NMLS 1862492, we treat the county tax bill, the flood map, and the lease as the start of the file.
2026 loan limits in Taylor County
Taylor County sits at the national conforming floor in 2026. FHFA sets that floor at $832,750 for one unit, $1,066,250 for two units, $1,288,800 for three units, and $1,601,750 for four units. Jones County, also in the Abilene MSA, uses the same four conforming figures. A loan above $832,750 is a jumbo file on the conforming side. Jumbo is a different program, and a DSCR lender sets its own maximum loan amount.
HUD CHUMS lists the 2026 FHA floor for the Abilene, TX metro. For Taylor County the official FHA limits are $541,287 for one unit, $693,050 for two units, $837,700 for three units, and $1,041,125 for four units. Those FHA numbers are official. They are not a DSCR cap. FHA is a different path with its own occupancy and income rules. A typical Abilene rental is more likely to sit under the FHA one-unit figure than a house in a high-cost metro, but the DSCR overlay is still the lender's, not HUD's.
| Units | 2026 conforming limit (FHFA) | 2026 FHA limit, Taylor County (HUD CHUMS) |
|---|---|---|
| One unit | $832,750 | $541,287 |
| Two units | $1,066,250 | $693,050 |
| Three units | $1,288,800 | $837,700 |
| Four units | $1,601,750 | $1,041,125 |
Sources: FHFA, conforming loan limit values for 2026, and HUD CHUMS 2026 FHA forward limits.
FY2026 fair-market rent for the Abilene, TX MSA
HUD's FY2026 fair-market rents for the Abilene, TX MSA, which covers Callahan, Jones, and Taylor Counties, are $1,010 for an efficiency, $1,020 for one bedroom, $1,276 for two bedrooms, $1,653 for three bedrooms, and $1,987 for four bedrooms. Those figures are lower than the Austin-Round Rock-San Marcos schedule. A lender may still use the lease, a 1007 rent schedule, or a market-rent estimate instead of FMR. FMR is a published benchmark, not a promise of what your house will rent for.
| Bedrooms | FY2026 FMR, Abilene, TX MSA |
|---|---|
| Efficiency | $1,010 |
| One bedroom | $1,020 |
| Two bedrooms | $1,276 |
| Three bedrooms | $1,653 |
| Four bedrooms | $1,987 |
Source: HUD FY2026 FMR Schedule.
Property tax, homestead rules, and title in the Abilene area
The Texas Comptroller states that Texas has no state property tax. Local taxing units set rates and collect the tax. We do not copy a single citywide Abilene rate onto this page, because a parcel's total is the sum of several units, and the figures change. Use the bill for that address, and count the full monthly tax in PITIA, including any special district that attaches to the lot.
Texas homestead relief does not follow a typical DSCR rental. The Comptroller's property tax exemptions page states that Tax Code Section 11.13(b) requires school districts to provide a $140,000 exemption on a residence homestead. The 10% appraisal cap, as explained on the Comptroller's appraisal and tax limitations page, applies to a property that receives a residence homestead exemption. It does not cap a typical investment rental. If you buy a home that was the seller's homestead, the relief can come off, and the tax line used in your DSCR can be higher than the seller's last bill.
Section 50(a)(6) of the Texas Constitution also limits cash-out refinancing on a homestead. A non-owner-occupied rental is not a homestead, so that cash-out cap is not the rule that governs a DSCR refinance. The limits that do apply are the lender's loan-to-value cap, the DSCR minimum, reserve rules, and title seasoning.
Texas has no state or local real estate transfer tax. Title insurance premiums are set by the Texas Department of Insurance. Recording charges, origination, and escrow fees still appear on the Loan Estimate. We do not invent an Abilene closing-cost range on this page.
How do older Abilene homes and insurance quotes affect a DSCR file?
Older houses near downtown or the university areas can need a careful inspection. Roof, foundation, and insurance condition reports show up on those files. A landlord policy in West Texas often carries a wind or hail deductible that changes the premium. Get quotes early and count the full monthly premium in PITIA. I do not invent a premium or a deductible amount here.
Homes near a creek or in a mapped flood zone also need a flood check. Use the FEMA Flood Map Service Center for the exact lot. If flood insurance is required, or if you buy it anyway, count the monthly premium in PITIA. HOA dues are less common than in some Austin-metro subdivisions, but when they exist they belong in the payment too.
How lenders count rent on an Abilene file
Most DSCR lenders start with a signed lease if the house is already rented. If the house is vacant, they often use the appraiser's 1007 rent schedule or another market-rent estimate. HUD's FMR figures above are a public benchmark, not a substitute for that appraisal. I've seen a lease come in higher than the 1007, and the lender used the lower figure. Build your offer around the rent the lender will actually accept.
A house rented to a military household or to students can still be a long-term lease. Confirm the term, the occupants, and any city rental rules before you count that income. Short-term or mid-term rent is a different overlay. Confirm the city's current rules for that address before you count platform income. A lender may still haircut that income, or refuse it, even when the city allows the use.
Fannie Mae's selling guide is a conventional-loan rulebook, not a DSCR overlay. It is still useful context for how rental income, reserves, and multiple financed properties are documented on other programs. See B3-3.1-08, B3-4.1-01, and B2-2-03. Your DSCR lender will publish its own reserve and concentration rules.
Cash-out, purchases, and what the payment must clear
A purchase file needs a contract, a down payment source, and a payment that the accepted rent can support. A rate-and-term refinance keeps the same investor in title and changes the loan. A cash-out refinance pulls equity, subject to the lender's LTV cap, not the homestead 50(a)(6) cap, on a typical rental. Title seasoning still matters. We recently closed an out-of-state Texas refinance on a Dallas rental held in an LLC, and the same pattern applies here: confirm vesting, reserves, and the ratio before you lock.
Prepayment penalties are common on DSCR loans. Read the term, the step-down, and any yield-maintenance language before you choose a rate. A slightly lower rate is not a better loan if a two-year exit would trigger a large prepay. I look at the entire transaction: cash invested, monthly carrying costs, reserves, prepayment penalties, and the exit strategy.
Title in an LLC, and when DSCR is not the right path
Many investors close an Abilene rental in an LLC. Lenders vary on vesting, seasoning, and whether a single-member LLC is acceptable on a first-time investor file. The title commitment must match the borrower the lender approved. If you plan to vest in an entity, say so at application, not at the closing table.
DSCR is not the right path when you will occupy the house, when you need an FHA or VA occupancy program, or when the rent cannot support a payment that any of our lenders will accept. A conventional investment loan, a VA loan for an owner-occupant, or a bank-statement loan may fit better in those cases. We will tell you that before you spend money on an appraisal.
Estimate your Abilene DSCR
Enter the monthly rent and the full PITIA payment. Include property tax with any special district, landlord insurance, flood insurance if any, HOA dues, and special assessments. The calculator reports the ratio only. It is not an underwriting decision and not a commitment to lend.
Real DSCR files we closed
The files below are real, and they are from markets where we have already closed DSCR loans, not from Abilene. We do not invent local closings. They show how we work a DSCR file in any city, including Taylor County.
- Two condos, one day. In fall 2024 we closed two condo purchases for a Las Vegas investor with five or more rentals, both on the same day. The appraiser's rent pushed one ratio down to 0.82, and we kept the loans approved because the equity and reserves carried them.
- A foreign-national buyer. In spring 2023 we closed a DSCR loan for a foreign-national investor who bought a $435,000 rental in Las Vegas, using the property's rent rather than U.S. tax returns.
- A small-balance LLC refinance. A Nevada investor's LLC refinanced a $160,000 single-family rental in Kansas City. The appraisal came in $50,000 higher, the DSCR was 1.45, and the file went from submission to clear to close in 13 days.
- An out-of-state Texas refinance. In spring 2025 we closed a DSCR refinance on a Dallas rental held in an LLC, along with other out-of-state investment loans for clients in the same period. The pattern is the same one we use here: qualify on rent, confirm reserves, and match vesting to the program.
"One thing being a real estate investor has taught me is that getting a loan approved and making a good investment are two different things. I've seen investors spend weeks negotiating a purchase price and then barely examine the financing terms. They focus on the interest rate. I look at the entire transaction: cash invested, monthly carrying costs, reserves, prepayment penalties, and the exit strategy."
— David Ghazaryan
What clients say about investment-property loans with us. These are other-market reviews, not Abilene closings:
"Andrei and David were so great! They're helpful and communicated everything with me through the whole process. I am so pleased and look forward to using iqrate for my future investment properties. 10/10 Will be reccomending to friends."
— Kassandra Arthur, 5-star review on Google
"David helped me to purchase my investment home earlier this month. Very happy I was referred to him by my real estate agent. He started from tax advice on how to file to easily qualify and ended with a congratulatory call when the loan funded. Best mortgage broker in town, hands down. That rhymed. We started the process early December and he advised me to lock the rate as soon as possible since rates were going up. Then about a week later after the loan had been approved, he called me advised me the rates had gone down and I could get 0.25% lower interest rate. He switched to another bank, relocked and started the process again. I wouldn’t have even known rates were down and that I could save, the sole fact he did this makes me very grateful to him. This shows he cares, and others need to know. Now, I’m saving for another 20% down to buy another investment home. I highly recommend David."
— Samvel Harutyunyan, 5-star review on Zillow
"David handled the purchase of my investment duplex in Olympia - Washington State. He came recommended by my realtor, and was very attentive, closed on time, and communicated clearly."
— Nnamdi Chima, 5-star review on Zillow
Areas and property types we see in the Abilene market
Files come in from neighborhoods near the universities, from streets closer to Dyess Air Force Base, and from nearby towns such as Tye, Impact, Buffalo Gap, and Merkel. A three- or four-bedroom house that rents to a long-term household can look reasonable against the Abilene FMR schedule, but the tax and insurance lines still have to clear. Duplexes and small multifamily buildings need a rent schedule for each unit.
We also see files in Jones County that use the same Abilene MSA fair-market rents and the same 2026 conforming floor. Confirm the county on the tax bill. The official FHA figures cited above are the Taylor County CHUMS line; confirm the Jones County line on HUD CHUMS if the house sits across the county line.
Video: why DSCR approvals fail on older rentals
The short video below walks through why a DSCR approval can fail when the payment math is incomplete. The examples are general. They are not Abilene closings.
Frequently asked questions
What is a DSCR loan in Abilene?
It is an investor loan that qualifies the house on its rent compared with PITIA, rather than on your tax returns. It is a non-QM program, not a conventional or FHA loan. This is not a commitment to lend.
Does it matter whether the house is in Taylor or Jones County?
Most of the city of Abilene is in Taylor County. The Abilene MSA also includes Jones County and Callahan County, so confirm the county on the tax bill. In 2026 both Taylor and Jones Counties sit at the conforming floor of $832,750 for one unit. The FHA figures cited in the table are the Taylor County CHUMS line.
Can I use a homestead exemption on a rental?
A typical DSCR rental is not a residence homestead. The Comptroller states that the $140,000 school exemption under Tax Code Section 11.13(b) applies to a residence homestead. Do not assume the seller's homestead savings will stay on your bill.
Does the 10% appraisal cap apply to my investment property?
The Comptroller's appraisal and tax limitations page explains that the 10% cap applies to a property that receives a residence homestead exemption. It does not cap a typical investment rental. Plan the tax line without that cap.
Can I close an Abilene DSCR loan in an LLC?
Often yes, when the lender's vesting and seasoning rules allow it. The title commitment must match the approved borrower. Tell us at application if you plan to vest in an entity.
What if the appraiser's rent comes in lower than I expected?
Many lenders will use the lower of the lease and the 1007 rent schedule. If the ratio falls below the overlay, we can look at a different program, more reserves, or a different purchase price. We do not invent a rent figure to make the ratio work.
Are title insurance costs negotiable in Texas?
Title insurance premiums are set by the Texas Department of Insurance. Other closing costs still vary and are itemized on your Loan Estimate. See our closing costs by state page for the state-level frame.
Do you work files near Dyess Air Force Base and in nearby towns as well?
Yes. We work investor files across the Abilene metro, including houses near Dyess and in nearby towns such as Tye, Impact, Buffalo Gap, and Merkel. The county, the tax units, and the lease still have to be checked address by address.
Can I keep an Abilene home as a rental after I PCS from Dyess?
Many military owners do that when the next set of orders arrives. A DSCR refinance or a new DSCR purchase can be the investor path once the house is no longer a primary residence. Occupancy, title, and the lease all have to match the program. This is not a commitment to lend.
Is a DSCR loan a commitment to lend?
No. This page is educational. Programs, rates, and terms vary by lender and change without notice. Any loan is subject to credit, property, and underwriting approval. This is not a commitment to lend.
Talk with us about an Abilene rental
If you are buying or refinancing a rental in Abilene or nearby Taylor County, send the address, the lease or rent estimate, and the estimated payment. We will run the ratio, compare DSCR overlays, and tell you what is missing. Apply now, contact us, or call (702) 766-3744.
More: Texas mortgage broker · Texas DSCR loans · DSCR loans · investor loans · our guarantees · closing costs by state
Sources
- FHFA, Conforming Loan Limit Values for 2026
- HUD CHUMS, 2026 FHA forward limits
- HUD, FY2026 Fair Market Rent Schedule
- Texas Comptroller, Property Tax
- Texas Comptroller, property tax exemptions
- Texas Comptroller, appraisal and tax limitations
- Texas Constitution, Article XVI, Section 50
- Texas Department of Insurance, title insurance
- FEMA Flood Map Service Center
- Fannie Mae Selling Guide B2-2-03, multiple financed properties
- Fannie Mae Selling Guide B3-4.1-01, minimum reserve requirements
- Fannie Mae Selling Guide B3-3.1-08, rental income
- CFPB, Regulation Z, 12 C.F.R. § 1026.3
- NMLS Consumer Access, iQRATE Mortgages, NMLS 1862492
iQRATE Mortgages · NMLS 1862492 · 6360 S Rainbow Blvd Ste 101, Las Vegas, NV 89118 · (702) 766-3744 · Licensed in Nevada, California, Texas and Florida. David Ghazaryan, Mortgage Broker, NMLS 1486726. Verify us on NMLS Consumer Access. Equal Housing Opportunity. This is not a commitment to lend; programs, rates and terms vary by lender and change without notice, and are subject to credit, property and underwriting approval. Local tax and program facts on this page come from the public sources listed above and are not legal or tax advice. DSCR and other investor loans are for business purposes only and are not for personal, family, or household use.
