Qualify Using Rental Income, Not Personal Income

A DSCR Loan Texas allows real estate investors to qualify for financing based entirely on rental income rather than personal income documents. This provides far more flexibility for investors buying or refinancing properties in Texas markets such as Houston, Dallas, Austin, San Antonio, and Fort Worth.

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What Is a DSCR Loan in Texas?

A DSCR (Debt Service Coverage Ratio) loan measures a rental property’s ability to pay its mortgage using the income the property generates.

DSCR Formula

DSCR = Rental Income ÷ Mortgage Payment (PITIA)

• 1.00+ DSCR usually required
• Below 1.0 may qualify with reserves
• Higher DSCR often means better rates

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Why Texas Real Estate Investors Prefer DSCR Loans

Advantages

• No tax returns required
• No pay stubs or income verification
• Fast approvals
• LLC-friendly loan programs
• Great for short-term or long-term rentals
• Ideal for self-employed investors

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DSCR Loan Requirements in Texas

DSCR Minimum

Most lenders want 1.00 or higher.

Credit Score

620–680+ depending on loan type.

Down Payment

20–25% for purchases, 25–30% for cash-out refinances.

Eligible Properties

• Single-family rentals
• 2–4 unit properties
• Condos & townhomes
• Short-term rentals (Airbnb / VRBO)
• Mixed-use properties (case-by-case)

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Best Texas Markets for DSCR Investors

• Houston
• Dallas–Fort Worth
• Austin
• San Antonio
• El Paso
• Frisco
• Plano
• McKinney

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Short-Term Rentals (Airbnb / VRBO)

• Market rent allowed
• Historical STR income accepted
• Projected income allowed

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Apply for a DSCR Loan Texas

• Top DSCR lenders nationwide
• Fast approvals with minimal documentation
• Investor-friendly loan terms
• Perfect for growing rental portfolios

Apply Now Talk to a Specialist

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DSCR Loan Texas Calculator