Texas DSCR Financing for Real Estate Investors
Qualify using rental income — not personal income.
What is a DSCR loan? A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that evaluates a property’s rental income rather than the borrower’s personal income or traditional debt-to-income ratios. Lenders use the property’s cash flow to determine whether it can cover the monthly mortgage payment and expenses. This structure makes DSCR loans ideal for real estate investors who want to qualify without tax returns or personal income.
Why it’s different: DSCR financing is built specifically for real estate investors. It offers streamlined documentation, faster approvals, and flexible options for purchasing or refinancing Texas rental properties. Learn more about DSCR Guidelines.
DSCR Loan Highlights
- Loan amounts up to $3,000,000
- Cash-out options up to $1,000,000
- No tax returns, W-2s, or pay stubs required
- Qualification based on rental income
- Ideal for real estate investors
- LLC and entity ownership allowed
Why Lone Star Financing for DSCR Loans
Texas DSCR Loan Specialists- Lone Star Financing is a DSCR-focused mortgage broker offering streamlined approvals, flexible underwriting, and access to a broad network of national DSCR lenders. We specialize in investment property financing and deliver the pricing, options, and efficiency investors need to grow with confidence.
Our DSCR Loan Options
DSCR Refinance
Refinance rental properties using DSCR financing without income verification. Unlock equity, improve cash flow, or consolidate debt.
- Qualify using rental income
- No tax returns or W-2s required
- Rate & term or cash-out options
- Investment properties
Multifamily DSCR
DSCR loans for multifamily properties allow investors to finance 2–8 unit buildings using rental income vs DTI.
- 2–8 unit properties
- Income-based qualification
- LLC and entity ownership allowed
- Competitive rates
Short Term Rentals
Finance short-term rental properties using projected or actual rental income. For Airbnb, VRBO, and vacation rentals.
- Airbnb & STR income accepted
- No personal income docs
- Investor-focused DSCR guidelines
- Approved STR programs
Renovation & Rehab
DSCR renovation loans help investors finance rental properties needing improvements and rehab
- Purchase plus renovations
- Based on rental income
- Ideal for value-add investors
- Flexible DSCR underwriting
DSCR for LLCs
Finance investment properties in an LLC or corporation using rental income not personal income.
- Title in an LLC or corporation
- Business-purpose
- Cross-collateral options
- Portfolio DSCR loans available
New Construction
Finance ground-up investment property construction using projected rental income.
- Ground up construction
- Flexible draw schedule
- New construction rental investments
- Transition to DSCR financing
Jumbo DSCR Loans
Jumbo loans provide higher loan limits – large investment properties without income verification.
- High loan amounts available
- Rental income qualification
- Ideal for premium investments
- LLC and investor-friendly options
Senior Loan Officer
NMLS# 2014728
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.
DSCR Loans Made Simple for Real Estate Investors
Whether you’re building your first rental or expanding a larger portfolio, we provide fast, investor-friendly DSCR financing with minimal documentation.
DSCR Loan Benefits
- Qualify with Rental Income
- LLC & Entity Ownership Allowed
- Up to 80% LTV
- 30-Year Fixed & Interest-Only
- Short- & Long-Term Rentals
- Fast Closings, Minimal Docs
- No DSCR Seasoning
DSCR Ideal Borrowers
- Real estate investors
- Borrowers building a rental portfolio
- Airbnb & short-term rental hosts
- Self-employed investors
- BRRRR investors
- Buy-and-hold investors
Understanding DSCR Loans in Texas
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.
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.