Loan programs in Waco
DSCR Loans in Waco
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
InvestorFix and Flip Loans in Waco
A fix and flip loan is short-term (usually 12–18 months), interest-only financing that covers most of a distressed property’s purchase price and up to 100% of renovation costs, repaid when you sell or refinance.
InvestorDSCR Cash-Out Refinance in Waco
A DSCR cash-out refinance replaces the loan on a rental with a larger one, sized to the property’s value and qualified on its rent, and pays you the difference in cash.
InvestorShort-Term Rental (Airbnb) DSCR Loans in Waco
A short-term rental DSCR loan qualifies a vacation rental on its nightly-rental income, using 12 months of booking history or a third-party projection such as AirDNA, instead of a long-term lease.
Home loanBank Statement Loans in Waco
A bank statement loan is a non-QM mortgage that calculates self-employed income from 12 or 24 months of personal or business bank deposits instead of tax returns.
Home loanFHA Loans in Waco
An FHA loan is a government-insured mortgage that allows 3.5% down with a credit score of 580 or higher, or 10% down with a score from 500 to 579.
Home loanFirst-Time Homebuyer Loans in Waco
First-time homebuyer loans are mortgage options with low down payments, typically 3% conventional, 3.5% FHA or $0 VA, often paired with state or local down payment assistance.
Home loanVA Loans in Waco
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs that lets eligible veterans, active-duty service members and certain surviving spouses buy with no down payment and no monthly mortgage insurance.
Home loanCondo Loans in Waco
A condo loan is a mortgage on a unit in a condominium project, and approval depends on the building as well as the buyer.
Neighborhoods in Waco
- Castle Heights
- Baylor area
- North Waco
- Woodway area
Why borrowers look at Waco
Waco sits between Dallas and Austin on I-35, transformed in the last decade by Baylor University growth, downtown revitalization, and national attention from the home-renovation spotlight. Housing includes historic Castle Heights homes, affordable mid-century neighborhoods, and new builds on the outskirts. Buyers get Central Texas access at small-city prices. Investors like the Baylor student base, low entry costs, and a downtown core that continues to add employers and amenities. The Magnolia-driven tourism boom put Waco on the national map, while Baylor research growth and manufacturing, including the SpaceX test facility in nearby McGregor, keep adding jobs that support both owner-occupants and renters.
Local market snapshot: Waco
| Median home value | $221,700City of Waco · Source: U.S. Census Bureau, American Community Survey 5-year estimates |
|---|---|
| Median gross rent | $1,165/moCity of Waco · Source: U.S. Census Bureau, American Community Survey 5-year estimates |
| Effective property tax rate | 1.17% (approx.)McLennan County, effective rate (approx.) · Source: SmartAsset, Texas Property Tax Calculator |
Homeowners insurance: Waco premiums reflect Central Texas hail and tornado exposure, running moderate by Texas standards. Carriers price roof age and condition closely, so buyers of older homes should confirm insurability and get quotes during the option period.
Figures are the most local reliable public data available (city, then county, then statewide), each labeled above. They are context for your payment estimate, not a quote, run your scenario through our payment calculator.
Before you buy or refinance in Waco
- Pull the McLennan County property tax bill early; it is part of every payment and DSCR calculation.
- Get an insurance quote before you lock a price.
- For rentals, check rent comps and any local rental registration or short-term rental rules in Waco.
- Texas home-equity cash-out on a homestead (Section 50(a)(6)) is capped at 80% of value with a 12-day notice and a 3-day right of rescission. Investment property cash-out is not subject to the homestead rules, which is one reason DSCR cash-out is popular with Texas investors.
Run the numbers
- DSCR Calculator
- Fix and Flip Profit Calculator
- Mortgage Payment Calculator
- Home Affordability Calculator
Other Texas cities
- Houston
- Dallas
- San Antonio
- Austin
- Fort Worth
- Arlington
- Plano
- El Paso
- Corpus Christi
- Frisco
- McKinney
- Lubbock
- Killeen
- Irving
- Garland
- Laredo
- Amarillo
- Round Rock
- Pearland
- Sugar Land
- Conroe
- College Station
- Brownsville
- McAllen
- Denton
- Midland
- Tyler
- Beaumont
- Grand Prairie
- Pasadena
- Mesquite
- Carrollton
- Abilene
- Richardson
- Odessa
- League City
- The Woodlands
- Lewisville
- Allen
- Wichita Falls
- Edinburg
- San Angelo
- New Braunfels
- Atascocita
- Mission
- Bryan
- Baytown
- Temple
- Longview
- Pharr
- Cedar Park
- Flower Mound
- Missouri City
- Mansfield
- Harlingen
- North Richland Hills
- San Marcos
- Georgetown
- Victoria
- Pflugerville
- Rowlett
- Spring
- Euless
- Leander
- Wylie
- DeSoto
- Port Arthur
- Galveston
- Texas City
- Grapevine
FAQ
What loans can I get in Waco, TX?
Investor loans (DSCR, fix and flip, cash-out, short-term rental) and owner-occupied home loans (bank statement, FHA, VA, conventional and more).
Who assesses property taxes in Waco?
McLennan County. Lenders include those taxes in the monthly payment used to qualify you.