How to Get DSCR Loans for Investment Property Financing in Texas
Texas real estate is booming, and many investors want to learn how to get DSCR loans for investment property financing in Texas. This type of loan helps investors use rental income to qualify, making it easier to fund rental homes.
What Is a DSCR Loan?
DSCR means Debt Service Coverage Ratio. It’s a loan that uses rental income to prove you can cover mortgage payments. You don’t need to show personal income or tax returns.
Why Texas Investors Choose DSCR Loans
Strong rental demand in Houston, Dallas, Austin, and San Antonio
No need to provide W-2s or tax returns
Great for financing single-family homes, duplexes, and small multi-family units
Works well for both new and seasoned investors
Texas DSCR Loan Requirements
Minimum DSCR ratio usually 1.0 to 1.25
Credit scores of 620 or higher typically needed
Down payments starting around 20%
Loan amounts from $100,000 to $2 million+
Eligible properties include single-family, duplex, triplex, and fourplex
Top Texas Cities for DSCR Loan Investors
Houston: Large market with diverse rental properties
Dallas: Thriving economy with strong tenant demand
Austin: Popular city with growing rental market
San Antonio: Affordable housing with steady rentals
Tips to Qualify for DSCR Loans in Texas
Lenders focus on rental income documentation. Make sure your lease agreements and rent rolls clearly show consistent cash flow.
