DSCR Loans for Texas Real Estate Investors
Texas is booming with rental opportunities. If you want to know how to qualify for DSCR loans in Texas for rental properties, you’re in the right place.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. This loan type lets investors qualify based on rental income, not their personal salary or tax returns.
If your rental income covers the mortgage, you can qualify.
Why DSCR Loans Are Popular in Texas
Hot rental markets in Dallas, Houston, Austin, and San Antonio
Great for both short-term Airbnbs and long-term rentals
No W-2s or tax returns needed
Perfect for investors from other states looking to buy Texas rental properties
DSCR Loan Requirements in Texas
DSCR Ratio: Minimum 1.0 to 1.25
Credit Score: 620 or higher
Down Payment: At least 20%
Loan Amounts: $100,000 to $2 million+
Eligible Properties: Single-family homes, duplexes, triplexes, fourplexes, and Airbnbs
Best Texas Cities for DSCR Loan Investors
Dallas: Strong rental demand and growing job market
Houston: Affordable properties with high cash flow
Austin: Booming tech hub with rental growth
San Antonio: Affordable entry point with good ROI
How to Qualify for DSCR Loans in Texas for Rental Properties
To qualify, you must prove the rental income covers your mortgage payments. Lenders look at your property’s rent, not your paycheck. This makes DSCR loans ideal for investors buying rental homes or short-term rental properties across Texas.
