Designed for real estate investors who want to grow their portfolio without the hassle of traditional income documentation. Let your property's rental income do the qualifying.
No obligation. No credit check to get started.
Texas leads the nation in population growth, with the Houston, Dallas-Fort Worth, Austin, and San Antonio metros each adding tens of thousands of new residents per year. Strong job markets in tech, energy, and healthcare keep buyer demand steady, and Texas has no state income tax.
Texas is one of the strongest landlord states in the country and has consistent demand for rental units in Houston, DFW, San Antonio, and Austin. DSCR is our most-funded investor program in TX.
A DSCR loan allows real estate investors to qualify for financing based on the income a property generates rather than their personal income, tax returns, or employment history.
DSCR stands for Debt Service Coverage Ratio. It measures a property's ability to cover its mortgage payment using the rental income it produces. Instead of verifying your personal W-2s, pay stubs, or tax returns, lenders evaluate whether the property itself generates enough income to service the debt.
The formula is simple: DSCR = Property's Net Operating Income / Total Debt Service. A ratio of 1.0 or higher means the property's rental income fully covers the mortgage payment. The higher the ratio, the stronger the loan application.
For example, if a property generates $2,500/month in rent and the total mortgage payment (PITI) is $1,800/month, the DSCR is 1.39 — meaning the property earns 39% more than needed to cover the debt.
Removes the biggest barriers investors face when scaling their portfolio.
Skip the W-2s, pay stubs, and tax returns. Qualify based on the property's rental income alone.
Whether you own one rental or fifty. Long-term rentals, short-term vacation properties, multi-unit buildings — all under one program.
Streamlined documentation and underwriting. DSCR loans often close in 21-30 days.
Straightforward criteria focused on the property's performance and your investment profile.
A DSCR of 1.0 or higher is preferred. Higher ratios unlock better rates. Some programs accept 0.75 with compensating factors.
Most DSCR loans require 20-25%, depending on property type and DSCR ratio.
660 minimum typically required. 700+ qualifies for more competitive rates and lower fees.
Single-family, duplex, triplex, quadplex, condo, townhome, short-term rentals (Airbnb/VRBO).
Getting a DSCR loan is straightforward.
Quick application with property and investment details. No tax returns or pay stubs.
We evaluate the property's rental income using market data, appraisals, and lease agreements.
Once DSCR ratio meets the threshold and credit/down payment check out, you receive a clear approval.
Streamlined closing — often funded in as little as 21 days.
Answers to the most common questions about dscr loans in Texas.
Lending Arena offers the full mortgage product set across Texas. See what else might fit your situation.
Lending Arena, NMLS #1603937. Licensed by the Texas Department of Savings and Mortgage Lending. Texas A6 home equity transactions are subject to the disclosures and protections of Texas Constitution Section 50(a)(6). Equal Housing Lender. This is not a commitment to lend. CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.