DSCR Loans for Texas Real Estate Investors. Secure the financing you need with a loan that works for you, not against you.
A DSCR (Debt Service Coverage Ratio) loan is built for real estate investors like you. Unlike traditional mortgages, DSCR loans focus on your property’s cash flow to determine loan approval. If your rental income can cover the mortgage payment, you’re well on your way.
Whether you’re buying your first investment property or expanding a portfolio of short-term rentals, DSCR loans in Texas make it easier to qualify and invest without jumping through unnecessary hoops.
With a DSCR loan in Texas, your property’s income, not your personal income, determines your eligibility. That means no tax returns, no W-2s, and no traditional income documentation. Just fast, flexible, investor-friendly financing that helps you grow your real estate portfolio with confidence.
Getting approved for a DSCR mortgage in Texas is more about property performance than personal financials. Here’s what lenders typically look for to qualify for a Texas DSCR Loan:
You don’t need tax returns, pay stubs, or employment verification. Just a strong, cash-flowing property.
If you’re a real estate investor in Texas, chances are the answer is yes. DSCR loans are ideal if you:
DSCR financing gives you the freedom to leverage property income and focus on scaling your investments.
Various types of properties are eligible for a Texas DSCR Loan. It is one of the best parts of DSCR loans in Texas. Here’s a quick breakdown:
If the property cash flows, it qualifies. It’s that simple.
Real estate investors choose DSCR loans for one reason: they work. These loans are designed to be simple, scalable, and strategic for growing your portfolio.
Benefits include:
When your property can pay for itself, the rest should be easy.
We make applying for a DSCR loan in Texas quick and straightforward
Speak with a DSCR loan advisor about your goals
Provide rent rolls, expense reports, and appraisals
Find out how much you can borrow—no tax returns required
Fast funding for deals that make sense.
You handle the investing.
We handle the financing.
If you ask how the DSCR is calculated, the Debt-Service Coverage Ratio (DSCR) is calculated using Net Operating Income (NOI) and total debt servicing. NOI, often considered equal to Earnings Before Interest and Tax (EBIT), represents a company’s revenue less operating expenses, excluding taxes and interest.
DSCR = Total Debt Service / New Operating Income
Where: Net Operating Income = Revenue – COE
COE = Certain Operating Expenses
Total Debt Service = Current Debt Obligations
Total debt service refers to current debt obligations, including any interest, principal, sinking fund, and lease payments that are due in the coming year. This will include short-term debt and the current portion of long-term debt on a balance sheet.
Income taxes complicate DSCR calculations because interest payments are tax deductible and principal repayments are not. A more accurate way to calculate total debt service would be to compute it like this:
TDS = (Interest × (1−Tax Rate)) + Principal
Where: TDS = Total debt service
The Debt-Service Coverage Ratio (DSCR) reflects a company’s income-based ability to service debt, highlighting cash flow health. A DSCR of 1.00 means operating income precisely covers debt service costs. A ratio below 1.00 indicates insufficient income for debt service, resulting in negative cash flow. Lenders commonly use this ratio when evaluating loan applications.
Q: What DSCR is required to qualify?
A: Most lenders want a DSCR of 1.0–1.25, meaning your rental income covers your mortgage payment.
Q: Can I use a DSCR loan for short-term rentals like Airbnb?
A: Yes! As long as the property generates enough rental income and meets appraisal and zoning guidelines.
Q: Are tax returns required?
A: Nope. That’s the beauty of DSCR loans. Approval is based on property income, not personal documentation.
Q: How fast can I close?
A: With all docs ready, many DSCR loans close in 2–4 weeks.
You deserve a loan that keeps up with your investing goals. With DSCR loans in Texas, you can access fast, flexible capital without jumping through hoops. Whether you’re buying your first rental or your fifteenth, we’re here to help you grow smarter and faster.
Call our Mortgage Specialists at (877) 280-4833. Our expert team is ready to guide you through your options and tailor a solution that fits your portfolio.
The Texas Mortgage Pros, LLC. is not affiliated with an agency of the federal government, HUD or FHA. THIS IS NOT A GOVERNMENT DOCUMENT. HUD or FHA did not distribute or approve this material.
The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.
