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 a Round Rock rental qualify on its rent, not your personal tax returns. We help investors compare DSCR programs for houses in Williamson County. That includes nearby communities such as Georgetown, Hutto, Pflugerville, and Cedar Park. It also helps out-of-town owners who keep an Austin-metro 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 and Austin mortgage broker coverage. See also Texas DSCR loans, DSCR loans, and investor loans.
Round Rock DSCR loan facts at a glance
| Item | What it means on a Round Rock file |
|---|---|
| How you qualify | The property's rent is compared with PITIA (principal, interest, taxes, insurance, and HOA or assessments) |
| 2026 one-unit limits, Williamson County | $832,750 conforming (FHFA floor) and $571,550 FHA (HUD CHUMS). These are not a DSCR cap. |
| Property tax | Texas has no state property tax. Local units set the rate. Count any MUD or PID in the monthly tax line. Do not use an Austin city rate for a Round Rock bill. |
| Transfer tax | Texas has no state or local real estate transfer tax. Title insurance premiums are set by the Texas Department of Insurance. |
| Insurance and HOA | Get landlord insurance early, plus flood insurance if the FEMA map requires it. Count HOA dues and special assessments 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, including any MUD or PID. 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 a MUD assessment or an insurance premium 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 a Round Rock 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 Round Rock investors use a DSCR loan
Round Rock sits on the north side of the Austin-Round Rock-San Marcos metro, along Interstate 35 in Williamson County. Dell Diamond, Old Town, and newer master-planned sections such as Teravista and Paloma Lake all show up on investor files. A house near Brushy Creek or along SH 45 can rent as a long-term home for people who work in Austin, Georgetown, or the tech corridor. We shop more than 100 wholesale lenders on complex files instead of one bank's menu.
Self-employed investors, foreign-national 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 Round Rock files from our Las Vegas office and close with local Texas escrow and title. We do not claim a Round Rock 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 Williamson County
Williamson 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. Travis County 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 a higher 2026 FHA ceiling for the Austin-Round Rock-San Marcos metro. For Williamson County the official FHA limits are $571,550 for one unit, $731,700 for two units, $884,450 for three units, and $1,099,150 for four units. Travis County uses those same FHA figures. Those FHA numbers are official. They are not a DSCR cap. FHA is a different path with its own occupancy and income rules.
| Units | 2026 conforming limit (FHFA) | 2026 FHA limit, Williamson County (HUD CHUMS) |
|---|---|---|
| One unit | $832,750 | $571,550 |
| Two units | $1,066,250 | $731,700 |
| Three units | $1,288,800 | $884,450 |
| Four units | $1,601,750 | $1,099,150 |
Sources: FHFA, conforming loan limit values for 2026, and HUD CHUMS 2026 FHA forward limits.
FY2026 fair-market rent for the Austin-Round Rock-San Marcos MSA
HUD's FY2026 fair-market rents for the Austin-Round Rock-San Marcos, TX MSA, which covers Williamson, Travis, Hays, Bastrop, and Caldwell Counties, are $1,474 for an efficiency, $1,562 for one bedroom, $1,852 for two bedrooms, $2,347 for three bedrooms, and $2,760 for four bedrooms. 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, Austin-Round Rock-San Marcos, TX MSA |
|---|---|
| Efficiency | $1,474 |
| One bedroom | $1,562 |
| Two bedrooms | $1,852 |
| Three bedrooms | $2,347 |
| Four bedrooms | $2,760 |
Source: HUD FY2026 FMR Schedule.
Property tax, homestead rules, and title in the Round Rock 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 Round Rock rate onto this page, because a parcel's total is the sum of several units, and the figures change.
Our existing Austin mortgage broker page labels a 2025 combined rate of about $2.23 per $100 for the City of Austin with Austin ISD, before exemptions. That stack is not a Round Rock rate. Round Rock, Georgetown, Hutto, and Pflugerville sit in other cities and often other school districts. Many newer subdivisions also carry a MUD or a PID. Use the bill for that address, and count the full monthly tax in PITIA, including any MUD or PID.
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 a Round Rock closing-cost range on this page.
How do MUDs and PIDs affect a Round Rock DSCR file?
Many newer Williamson County subdivisions use a municipal utility district or a public improvement district. Those assessments sit on the tax bill and belong in the monthly tax line of PITIA. I've seen a ratio look fine on principal and interest alone, then fall once the MUD was added. We do not invent a MUD amount here. Use the current bill, or a title commitment, for the exact lot.
HOA dues are a separate line. A master-planned community can have both an HOA and a PID. Count both. Special assessments belong in the calculator field for assessments, not as a footnote after the loan is locked.
Homes near Brushy 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.
How lenders count rent on a Round Rock 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.
Short-term or mid-term rent is a different overlay. Round Rock is not the City of Austin, and Austin's short-term rental license rules do not automatically apply here. 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 a Round Rock 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 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 Round Rock DSCR
Enter the monthly rent and the full PITIA payment. Include property tax with any MUD or PID, 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 Round Rock. We do not invent local closings. They show how we work a DSCR file in any city, including Williamson 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 Round Rock 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 Round Rock market
Old Town and the streets around Dell Diamond often have older houses and smaller lots. Newer sections such as Teravista, Paloma Lake, and Forest Creek more often have HOA dues and, in some cases, a MUD or PID. A four-bedroom house that rents to a household working in Austin can look strong on FMR, but the tax and HOA lines still have to clear. Duplexes and small multifamily buildings need a rent schedule for each unit.
We also see files in Georgetown, Hutto, Pflugerville, Cedar Park, and Leander that use the same metro FMR and the same Williamson or adjacent-county loan limits. Confirm the county on the tax bill, because a few addresses sit near a county line. The 2026 FHA high-cost limits above apply across the Austin-Round Rock-San Marcos MSA counties listed by HUD.
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 Round Rock closings.
Frequently asked questions
What is a DSCR loan in Round Rock?
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 Williamson or Travis County?
Most of Round Rock is in Williamson County. A few addresses can sit near the Travis County line, so confirm the county on the tax bill. In 2026 both counties share the same conforming floor of $832,750 and the same FHA limits, including $571,550 for one unit.
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 a Round Rock 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 in Georgetown, Hutto, and Pflugerville as well?
Yes. We work investor files across the Austin-Round Rock-San Marcos metro, including those nearby cities. The county, the tax units, and the lease still have to be checked address by address.
How do MUDs and PIDs change the DSCR payment?
They are part of the tax bill, so they belong in the monthly tax line of PITIA. Leaving them out can make the ratio look better than the lender will accept. Use the current bill for the exact amount.
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 a Round Rock rental
If you are buying or refinancing a rental in Round Rock or nearby Williamson 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: Austin mortgage broker · 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
- iQRATE, Austin mortgage broker page (labeled 2025 City of Austin with Austin ISD rate, not a Round Rock rate)
- 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.
