DSCR Loans in Texas for Real Estate Investors – No Tax Returns Required
Looking to finance a rental property in Texas without the hassle of income verification? A DSCR (Debt Service Coverage Ratio) loan could be your best option. At Lone Star Financing, we specialize in DSCR loans designed for real estate investors—no tax returns, W-2s, or pay stubs needed. Approval is based on the property’s cash flow, making it faster and easier to qualify.
Our DSCR Loan Advantages:
- Up to $3,000,000 (85% LTV)
- Up to $1,000,000 Cash Out
- No Employment – Income Verification
- Use Rental Income to Qualify
- Ideal for Real Estate Investors
- Flexible Ownership Structure
DSCR Calculator – Estimate Your Property’s Coverage Ratio
DSCR Calculator
A DSCR of 1.0 generally meets minimum lending requirements. Ratios of 1.25 or higher are considered stronger and may qualify for more favorable rates.
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
Real Estate Investor - DSCR Loans
Close on Time
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 DSCR loans in Texas - Low rates with flexible terms and fast closings.
Service
Preferred lender for DSCR home loans in Texas - Just see what our customers are saying!
Why Real Estate Investors Choose Us ?
It's Our People!
Senior DSCR Loan Specialist
Brett Dempsey is a Texas-based DSCR loan specialist with deep expertise in investment property financing. With a strong background in commercial lending, Brett has become a go-to resource for real estate investors seeking flexible, no-income documentation loan solutions across the state.
He brings a strategic, investor-focused approach to every deal—whether you’re purchasing your first rental property or scaling a real estate portfolio. Brett understands the nuances of DSCR loan guidelines and knows how to structure deals that maximize cash flow and close quickly.
Known for his responsiveness, problem-solving mindset, and commitment to client success, Brett simplifies the lending process while helping investors secure the right financing for long-term growth. If you’re looking for a smart, streamlined DSCR loan solution in Texas, Brett is the partner you want in your corner.
Texas DSCR Loans - Speak to an Expert
CALL (855) 314-8080 or get started online
About DSCR Mortgages
DSCR loans are designed with flexibility in mind, making them ideal for investors with non-traditional income streams—like entrepreneurs, self-employed professionals, and independent contractors. Instead of relying on personal income, these loans focus on the property’s ability to generate enough rental income to cover the mortgage, offering a streamlined path to home financing.
To understand Texas DSCR mortgages, 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 the above DSCR calculator to determine what your DSCR is and if you qualify for an investment property loan in Texas.
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.
Lone Star Financing specializes in DSCR Loans and our DSCR mortgages are 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. Non-QM (Non-Qualified Mortgage) loans don’t meet the strict guidelines set by Fannie Mae, Freddie Mac, or the CFPB’s Qualified Mortgage (QM) rules. Instead of using tax returns, W-2s, or personal income verification, Non-QM loans offer alternative ways to qualify — which is exactly what a DSCR loan does.
