Texas DSCR Loans Built for Investors Who Buy for Cash Flow
Financing for qualifying Texas rental properties based on the economics of the deal—not a traditional income-driven mortgage process. Buy or refinance eligible 1–4 unit investment properties with long-term financing.
$75K minimum loan • 1–4 unit residential rentals • Direct lender • No rural properties
Your Texas Rental Has Its Own Financial Story.
A rental property can make sense as an investment even when the borrower's personal income does not fit neatly into traditional mortgage underwriting.
That's where DSCR financing comes in. Instead of making the borrower's paycheck the center of the conversation, the loan looks closely at the property's rental income and ability to support its debt obligations—while still considering credit, leverage, property type and other underwriting requirements.
What are you buying or refinancing?
What income can the property generate?
What will the financing require?
Does the rental income support the debt?
The Same DSCR Loan Can Serve Very Different Texas Deals.
A long-term rental in Dallas is not necessarily the same investment strategy as a property in Houston, Austin or San Antonio. The financing has to fit the property you're actually buying.
Dallas–Fort Worth
Investors targeting suburban single-family rentals, townhomes and established rental corridors.
Houston
A deep rental market where investors may evaluate cash flow differently across neighborhoods and property types.
San Antonio
Investors looking for long-term rental opportunities where purchase price and achievable rent need to work together.
Austin
Higher-priced rental markets where leverage, rent and property economics become especially important.
Don't Wait Until Closing to Discover the Deal Doesn't Work.
Before you commit to a Texas rental purchase, understand how the property's rental income compares with the proposed debt. A 1.05 DSCR is the minimum requirement for this program.
Start With the Property. Then Look at the Loan.
Texas DSCR financing is designed for qualifying non-owner occupied residential investment properties. The property type matters just as much as the borrower's profile.
Single-Family Rentals
Qualifying non-owner occupied single-family rental properties.
2–4 Unit Properties
Residential multifamily properties within the program's 1–4 unit limit.
Townhomes & PUDs
Eligible townhomes and planned unit developments can qualify when program requirements are met.
Warrantable Condos
Warrantable condominium properties may be eligible for long-term rental financing.
Not 5+ Units
5+ unit multifamily properties fall outside this DSCR program.
No Rural Properties
Rural properties and other ineligible property types do not qualify.
A Stronger Credit Profile Can Open More Room in the Deal.
The minimum qualifying score is 660 mid FICO, but maximum leverage is tied to the borrower's credit tier and transaction type.
*Maximum LTV is subject to program guidelines, property eligibility, transaction type and underwriting.
The Right Loan Structure Depends on What You're Trying to Accomplish.
Texas investors aren't always buying their next rental. Sometimes they're repositioning an existing property, improving their leverage or pulling equity for the next opportunity.
Buy the Rental
Use DSCR financing to acquire a qualifying 1–4 unit Texas investment property and structure the purchase around its rental economics.
Refinance the Rental
Move an eligible rental into long-term financing through rate-and-term or, when available, cash-out refinancing.
Recycle the Equity
Qualified cash-out transactions can potentially turn property equity into capital for another investment while keeping the rental in place.
A Good Rental Deal Shouldn't Sit in Financing Limbo.
Qualified Texas DSCR transactions can target a 14-day closing. The fastest path is a clean file: complete documentation, responsive parties, clear title, insurance and an appraisal that keeps the transaction moving.
Closing times vary by transaction and depend on appraisal, title, insurance, documentation and underwriting conditions.
Keep the File Moving
Property and borrower information starts the review.
Rent, debt, leverage and property details are evaluated.
Required conditions are addressed before closing.
Qualified transactions can target approximately 14 days.
What Could a Texas DSCR Deal Look Like?
Every transaction is different. These illustrative examples show how an investor might approach a purchase or refinance using different property values and leverage levels.
Single-Family Rental
$425,000
$340,000
80%
14 days
2-Unit Rental
$510,000
$382,500
75%
13 days
4-Unit Investment Property
$640,000
$416,000
65%
16 days
Existing Rental Refinance
$725,000
$543,750
75%
14 days
DSCR financing can be part of a longer-term rental strategy—not simply a way to close the next acquisition.
The Loan Is One Piece of the Investment Strategy.
Purchase a qualifying Texas rental and structure the financing around the property's economics.
Operate the property as a long-term rental and manage income, expenses and debt.
When appropriate, evaluate refinancing or accessing equity as part of the next investment decision.
Four Things Need to Make Sense.
DSCR financing is streamlined, but it is not automatic. The property, rental income, borrower and transaction all need to fit the program.
Credit
660+ mid FICO is required, with stronger credit potentially allowing higher leverage.
Coverage
The property must meet the program's minimum 1.05 DSCR requirement.
Property
The property must be an eligible non-owner occupied 1–4 unit residential investment property.
Transaction
Purchase, rate-and-term refinance and qualifying cash-out transactions are available subject to program rules.
The Numbers at a Glance
*Maximum LTV depends on credit profile, transaction type, property eligibility and underwriting.
Frequently Asked Questions
What credit score is required for a Texas DSCR loan?
A minimum 660 mid FICO score is required for this DSCR program. Higher credit scores can provide access to higher maximum LTV depending on the transaction.
What is the minimum DSCR required in Texas?
The minimum required DSCR is 1.05. The property must demonstrate sufficient qualifying rental income relative to its debt obligations under the program's underwriting methodology.
Can I use a Texas DSCR loan to buy a 2–4 unit property?
Yes. Qualifying non-owner occupied 2–4 unit residential properties can be eligible, subject to property, credit, DSCR and underwriting requirements.
Can I refinance a Texas rental with a DSCR loan?
Yes. Eligible Texas rental properties may qualify for rate-and-term or cash-out refinancing, subject to seasoning, LTV and other program requirements.
How quickly can a Texas DSCR loan close?
Qualified transactions can target a 14-day closing. Actual timing depends on appraisal, title, insurance, documentation, underwriting and other transaction-specific conditions.
What if my Texas rental doesn't qualify for a 1.05 DSCR?
You may want to consider the No-DSCR Rental Loan program. It is designed for qualifying 1–4 unit investment properties and does not require a DSCR calculation.
Can Texas DSCR loans be closed in an LLC?
Yes. Eligible borrowers may close qualifying DSCR loans in an LLC or corporation, subject to program and underwriting requirements.
Have a Texas Rental Deal You're Ready to Run?
If the property fits the program, the numbers work and your financing needs to move, let's take a look at the deal.
Direct lender • 25+ years experience • $3.5B+ funded • 25,000+ deals • No rural properties