Scale your rental portfolio without W-2s or tax returns. DSCR loans qualify based on what the property earns — not what you personally make.
DSCR stands for Debt Service Coverage Ratio — the relationship between a property's rental income and its monthly mortgage payment. If the property's gross rental income covers at least 1.0–1.25× the PITI payment, you qualify without submitting personal tax returns, employment verification, or W-2s. For Texas real estate investors who own multiple properties, run businesses, or aggressively depreciate assets on their returns, DSCR loans are often the only clean path to scaling a portfolio. In Austin — where short-term rental income on platforms like Airbnb can be 2–3× the long-term rental equivalent — DSCR unlocks opportunities that conventional investor financing cannot.
Active real estate investors with 2+ properties, self-employed investors whose tax returns show large depreciation losses, STR (Airbnb/VRBO) operators in Austin and San Antonio, and buy-and-hold investors building long-term rental portfolios.
DSCR rates typically carry a 0.50–1.25% premium over conventional investor rates, reflecting the no-income-documentation flexibility. The exact spread depends heavily on DSCR ratio, credit score, and LTV. Texas property taxes must be calculated into the DSCR before assuming a property will qualify.
21–28 days for a purchase DSCR loan. Cash-out refinance may require 28–35 days if the property is complex.
General guidelines — your specific situation may vary. Contact me for an exact assessment.
Minimum credit score of 620 (680+ for best pricing and flexibility)
DSCR ratio of 0.75–1.25+ depending on program tier
Minimum 20–25% down payment for purchase; 25–30% for cash-out refinance
Property must be a non-owner-occupied investment property
Signed lease or market rent analysis (from appraiser or AirDNA) required
Minimum 6–12 months reserves post-closing, depending on program
From first conversation to keys in hand — here's what to expect.
Each Texas market is different. Here's how DSCR Loans works specifically in each area we serve.
The Rio Grande Valley rental market is underrated by out-of-state investors and overlooked by locals. Rent prices have r...
View RGV Details →San Antonio has one of the strongest long-term rental markets in Texas. Military families rotating through JBSA need ren...
View SA Details →Austin is one of the top short-term rental markets in the country. Wimberley, Dripping Springs, and East Austin Airbnbs ...
View ATX Details →Real questions I get asked all the time — answered directly.
Texas property taxes are a major factor in DSCR math. The DSCR ratio is calculated as: Gross Monthly Rent ÷ (P + I + T + I + HOA). In Bexar County (San Antonio), a $300,000 rental property might carry $500–$575/month in property tax escrow. That alone can push a marginal DSCR below 1.0. We always calculate DSCR using actual county tax rates for your target market — not estimates — so you know exactly what your ratio is before making an offer.
Yes, but program selection matters enormously. Some DSCR lenders only accept long-term rental income from a signed lease. Others accept STR income supported by an AirDNA market analysis or a trailing 12-month income report from the Airbnb or VRBO platform. In Austin's STR market, where properties near downtown or South Congress can generate $4,000–$8,000+/month in platform income, the right DSCR lender unlocks significantly better ratios than using the long-term rent equivalent. We work specifically with programs that handle STR documentation correctly.
Most DSCR programs have a minimum of 620, but pricing improves meaningfully at 660, 680, 700, 720, and 740+. A 680 borrower versus a 740 borrower on the same $400,000 DSCR loan might see a 0.375–0.75% rate difference. Over a 5-year hold period, that's meaningful cash flow impact. We always model the cost of improving credit before locking versus the value of closing faster at a higher rate.
Many DSCR programs do allow LLC vesting, which is popular with Texas investors who want liability protection. However, not all programs allow it, and some that do may require a personal guarantee from the LLC members. We verify LLC eligibility before structuring your application — and if your chosen program doesn't allow it, we identify alternatives that do. We also work with investors who want to transfer a property to an LLC post-closing using a deed of trust assumption, though this has its own considerations.
Reserve requirements vary by program but typically range from 6–12 months of PITIA (principal, interest, taxes, insurance, and association dues) in a liquid account. Some programs require reserves calculated across your entire portfolio, not just the subject property. For a single rental with a $2,000/month PITIA, that means $12,000–$24,000 in verified liquid reserves post-closing. We work with programs that have the most borrower-friendly reserve structures for your portfolio size.
Always calculate DSCR using actual county tax data, not estimates — run it before making an offer
For STR properties, pull your trailing 12-month platform income report before applying
Have your reserve documentation ready: 2 months recent bank/investment statements
If titling in LLC, confirm the lender accepts LLC vesting before committing to that program
Run a portfolio-level reserve calculation if you own other financed properties — some programs aggregate across all assets
Free consultation. I'll tell you exactly what you qualify for and what your real monthly payment will be. Pre-approval in 24 hours.
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