DSCR Loans in Texas
Finance Texas rental property based on the property's rent, not your paycheck. No W-2s, no tax returns and no employment verification, with a 0.75x DSCR floor, rates from 5.75% and up to 85% LTV.
- Qualify on rent with real Texas taxes and insurance
- Single-family, condo, 2-4 unit and short-term rentals considered
- 14-day closings · LLCs and foreign nationals welcome
- No cap on the number of financed properties
Get your Texas DSCR quote
No tax returns · same-day quote · no hard credit pull to start.
- Share the address, rent and price or value
- Get a quote with real taxes and insurance
- Close in as fast as 14 days
Texas rental market
Why a DSCR loan fits Texas investors
Texas market snapshot
No state income tax, big metros in Dallas-Fort Worth, Houston, Austin, and San Antonio, and military markets like Killeen and El Paso. Property taxes and insurance are significant costs, and newer communities may add MUD or PID charges that raise the monthly payment.
Why DSCR fits
Because taxes are high, DSCR's full-PITIA approach shows whether a property truly cash flows, and investors can scale across metros with no property cap. We include hail, wind and flood insurance, plus any MUD, PID or HOA charges, so the ratio you see is the one we underwrite.
Priority state: we prioritize applications from Texas. If you have requirements in Texas, send them in and we can review them on priority.
| DSCR floor | 0.75x with compensating factors |
| Max LTV | Up to 85% on purchase |
| Rates from | 5.75% (strongest profiles) |
| Min FICO | 620+ |
| Qualifying income | Long-term rent or documented short-term-rental income |
| Vesting | Individual, LLC or entity · foreign nationals eligible |
| Closing | As fast as 14 days |
Local market details
Texas rental demand, housing and local anchors
Rental demand follows jobs, universities, healthcare, shopping and lifestyle. Here is a general look at the factors that shape Texas rental markets.
Population
About 29.1 million residents (2020 Census, rounded).
Rental market overview
Houston, Dallas-Fort Worth, Austin and San Antonio lead one of the nation's deepest rental markets, with El Paso and Killeen adding military demand. Build-to-rent and single-family rentals are widespread.
Housing trends
Prices rose sharply, cooled in Austin, and remain high in many metros. Property taxes and insurance are high, and newer communities may add MUD or PID charges.
Major employers
ExxonMobil, AT&T, Tesla, Dell, Texas Instruments, American Airlines, Oracle, USAA, H-E-B
Hospitals & healthcare
Texas Medical Center (Houston), MD Anderson, Baylor Scott & White, Methodist, Parkland, UT Southwestern
Colleges & universities
University of Texas at Austin, Texas A&M, Rice University, SMU, Baylor, University of Houston
Malls & shopping
The Galleria (Houston), NorthPark Center (Dallas), Stonebriar Centre, The Domain (Austin), La Cantera (San Antonio)
Attractions
The Alamo, San Antonio River Walk, NASA Johnson Space Center, Galveston beaches, Big Bend, State Fair of Texas
Local details are general, approximate context (population rounded from the 2020 Census) and change over time. Verify specifics for your property and city.
Requirements
Texas DSCR loan requirements
| Down payment | Typically 20-25% on purchase; as little as 15% (up to 85% LTV) for strong profiles |
| Credit | 620+ FICO; best pricing at 720+ |
| DSCR | From 0.75x with compensating factors; 1.0x+ standard |
| Reserves | Typically 3-6 months of PITIA |
| Rent proof | Lease, or appraiser market-rent schedule (Form 1007) |
| Property types | Single-family, condos, 2-4 unit, small multifamily, short-term rentals where permitted |
| Uses | Purchase, rate-and-term refinance, cash-out refinance |
Free tool
Texas DSCR calculator
Enter your Texas property's rent, loan terms and carrying costs to estimate your DSCR and monthly cash flow.
Property & loan
Illustrative only; not a rate quote or commitment to lend. Your final DSCR is based on the property's actual rent (lease or appraiser rent schedule), taxes and insurance.
Answers
Texas DSCR loan FAQ
What is a DSCR loan in Texas?
A DSCR loan in Texas qualifies you on the rental income of the property instead of your personal income. We divide the monthly rent by the full monthly payment (principal, interest, taxes, insurance and any HOA). No W-2s, tax returns or employment verification are required.
What DSCR ratio do I need for a Texas rental?
Most lenders look for 1.0x or higher. Our program accepts a DSCR as low as 0.75x with compensating factors such as reserves, which can help in Texas markets where taxes, insurance or HOA dues are high compared with rent.
How much can I borrow on a Texas investment property?
Up to 85% LTV on a purchase for strong borrower profiles, and typically 75 to 80% on a cash-out refinance. The maximum depends on credit score, DSCR, property type and loan size.
What credit score is needed for a DSCR loan in Texas?
A minimum 620 FICO score is accepted. Higher scores earn better pricing, with the best rates generally reserved for 720 and above.
Can I buy Texas rental property in an LLC or as a foreign national?
Yes. You can close in an LLC or other entity, and foreign nationals and first-time investors are welcome. An attorney or tax advisor can help you choose the right structure.
How fast can I close a DSCR loan in Texas?
As fast as 14 days with a complete file. Appraisal scheduling, title work and insurance quotes are the usual timing factors.
Can I use a DSCR loan for a short-term rental in Texas?
Yes, where short-term rentals are allowed. Check local zoning, licensing and HOA rules for the specific city before you buy, because rules differ from one municipality to the next.
Ready to finance your Texas rental?
Free quote · no hard credit pull to start · same-day terms.