How to Use DSCR Loans for Investment Properties in Texas
Looking to invest in rental properties across Texas? Cities like Houston, Dallas, and Austin have booming markets perfect for DSCR loans.
These loans allow investors to qualify without showing personal income, relying solely on the property’s rental income.
What Exactly Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. It’s the measure of rental income divided by debt payments.
If your rental income covers or exceeds your mortgage payment, you can qualify for a DSCR loan.
Why Texas Investors Love DSCR Loans
No tax returns or W-2s required
Fast approvals and closings
Perfect for multi-unit and single-family rentals
Allows LLC ownership
Scale your portfolio with ease
Best Cities for DSCR Loans in Texas
Houston: Affordable properties with strong rental demand
Austin: Growing tech hub with great rental income
Dallas: Diverse neighborhoods and investment opportunities
San Antonio: Stable market with steady renters
Typical Terms for Texas DSCR Loans
DSCR ratio: 1.0 or higher
Credit score: 620+
Down payment: 20-25%
Investment-use only properties
