DSCR Loans in Texas
30-year rental loans for Texas investors, qualified on the property's rental income and your credit score. Your W-2s, paystubs, and tax returns stay in the drawer, so you can add doors as fast as you find good rentals.
Lending statewide across Texas, from DFW and Houston to Austin, San Antonio, and the Rio Grande Valley.
Texas DSCR loan terms
Typical terms on a 30-year rental loan
| Term | 30 years |
| Purchase | Up to 80% of price |
| Refinance | Up to 75% of value |
| Qualifies on | Rent + credit score |
| Minimum DSCR | 1.0 |
| Minimum loan | $75,000 |
| Origination | 2% |
| Property | 1–4 unit rentals |
| Typical close | About 30 days |
How a Texas DSCR loan works
DSCR stands for debt service coverage ratio. It compares the rent a property brings in with the monthly payment it carries: principal, interest, taxes, insurance, and any HOA dues.
DSCR = monthly rent ÷ monthly payment
A Houston-area rental that rents for $2,100 a month with an $1,800 monthly payment has a DSCR of 1.17. SFI Loans looks for a ratio of 1.0 or higher. A higher ratio and a lower loan-to-value both bring your rate down.
Texas numbers to check before you offer
- Property taxes. Texas has no state income tax, so property taxes carry more of the payment. The seller's bill may include a homestead exemption you won't get as an investor, so estimate taxes at the full rate from the county appraisal district.
- Insurance. Gulf Coast rentals may need separate windstorm coverage, which adds to the monthly payment.
- HOA dues. They count toward the payment, so include them in the ratio.
Flip it, then hold it
Many Texas investors buy and renovate with a hard money loan in Texas, rent the property, then refinance into a 30-year DSCR loan to hold it. SFI Loans makes both loans, so the lender that funded your rehab also handles the refinance.
Refinances go up to 75% of the property's current market value. New to DSCR? Start with how DSCR rental loans work.
"We have been sending our business to Mike and SFI Loans for the past 7 years. We have closed well over $4 million in loans with them. They have been incredibly helpful to our growth over those years. They not only provide us with the loans we need, but they also act as a real estate mentor, and that education has helped us immensely. Can't recommend highly enough. Thank you."
Jason Geourgoulis, Dallas, TX
Texas DSCR loan questions, answered
Ready to see what your Texas rental qualifies for?
Send the address and the expected rent, and SFI Loans will tell you what the property qualifies for before you write the offer.