What is a Texas DSCR Loan?
To understand Texas DSCR loans, it’s helpful to start with the basics of the debt service coverage ratio (DSCR). DSCR is a measure of whether the rental income from a property can cover its annual debt payments. A DSCR of 1.0 or higher means the property earns enough income to meet its debt obligations. So, when you apply for a DSCR loan, your DSCR will significantly impact your loan eligibility and the rates and terms you can secure.
Use a DSCR calculator to determine what your DSCR is and if you qualify for an investment property loan in Texas.
Texas DSCR Home Loans:
- Up to $3,000,00 Loan Amount (85% LTV)
- Up to $1,000,000 Cash Out (75% LTV)
- No Employment – Income Verification
- Use Rental Income to Qualify
- Ideal for Real Estate Investors
- Flexible Ownership Structure
If you’re self-employed, a Non-QM DSCR loan might be a suitable option for you. Designed to offer flexibility for unique income scenarios—such as those of entrepreneurs, independent business owners, and contractors—these loans can accommodate your financial situation.
Up to $3,000,000
Qualification Guidelines:
Minimum FICO Credit Score
620
Minimum Down Payment
15%
Maximum Loan To Value
85%*
Mortgage Insurance
NO
Days Since Foreclosure
1
Days Since Short Sale
1
Special Qualification Requirements
NONE
TX Lender for DSCR Loans
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In-house underwriting and processing to close loans fast - Our goal is to close every loan in 21 days or less.
Low Rates
Low rates for non-QM DSCR loans in Texas - Low rates with flexible terms and fast closings.
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Local Texas customer service for DSCR home loans in Texas - Just see what our customers are saying!
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Shawn Dulac
Sr. Loan Officer
NMLS #1320463
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Sr. Loan Officer
NMLS #1680348
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Branch Manager
NMLS #347481
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Sr. Loan Officer
NMLS #490185
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DSCR Home Loans
Things to know about Non-QM DSCR Loans in Texas
A DSCR (Debt Service Coverage Ratio) home loan is a type of mortgage where lenders assess whether the rental income from a property can cover its debt payments. Instead of focusing on personal income, lenders look at the property’s cash flow to determine if it generates enough income to pay the loan, making it ideal for Texas real estate investors.
Good candidates for a DSCR loan are typically real estate investors who want to qualify for a mortgage based on the income generated by the property rather than their personal income. This includes:
- Investors with high cash-flow properties: Texas properties that generate steady rental income.
- Self-employed individuals: Business owners who may find it challenging to qualify for traditional loans based on personal income.
- Multiple property owners: Investors looking to expand their portfolio without affecting their personal debt-to-income ratio.
- Limited documentation applicants: Borrowers who prefer simplified requirements, as DSCR loans usually don’t require extensive income documentation.
Our DSCR loans in Texas especially appealing to investors seeking financing based on a property’s performance rather than their individual financial background.
A DSCR loan works by assessing whether a property’s rental income can cover its debt payments. Instead of looking at the borrower’s personal income, lenders calculate the debt service coverage ratio (DSCR) to see if the property generates enough income to cover the mortgage. If the DSCR meets the lender’s requirements (usually 1.0 or higher), the borrower may qualify for the loan based on the property’s cash flow.
Non-QM DSCR loans are ideal for homebuyers in Texas who don’t have traditional income proof required for a conventional loan in Texas, which adheres to strict federal guidelines. These loans use alternative income verification methods to help more people qualify for a mortgage. Features like longer loan terms and interest-only payments can also aid in qualification. Remember, terms vary by lender, so it’s important to review your specific agreement carefully.