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Calculate Your DSCR Ratio
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🧮 DSCR Loan Details
Your DSCR Results
*Estimates only. Rates and DSCR requirements vary by lender. Serving Texas & 30+ States.
Understanding DSCR Loans in Texas
DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors who want to qualify based on rental income — not personal income, W-2s, or tax returns.
📊 How DSCR Is Calculated
DSCR = Monthly Rent ÷ Monthly PITI. A ratio of 1.0 means rent exactly covers your payment. Lenders typically want 1.0 or higher, with 1.25+ considered strong and eligible for the best rates.
📋 No Tax Returns Required
DSCR loans qualify on the property’s rental income, not yours. No W-2s, pay stubs, or employment verification — perfect for self-employed Texas investors and those with complex tax situations.
💰 20% Down Typical
Most Texas DSCR programs require 20–25% down for investment properties. Some programs offer lower down payment options for borrowers with strong DSCR ratios or significant reserves.
🏠 Investment Properties Only
DSCR loans apply to investment properties only — 1–4 unit rentals, short-term rentals (Airbnb/VRBO), and some commercial. Not available for primary residences. You can close in an LLC.
DSCR Loan Qualification Criteria
| Criteria | Minimum | Strong Profile |
|---|---|---|
| DSCR Ratio | 1.0 (some at 0.75) | 1.25+ |
| Credit Score | 620 | 700+ |
| Down Payment | 20% | 25–30% |
| Max LTV | 80% | 70–75% |
| Property Types | 1–4 unit investment | SFR, 2-4 unit, STR |
| Interest Rate | Varies by lender — we shop multiple programs for you | |
Ready to Build Your Texas Portfolio?
Adam Bartling & Team work with multiple DSCR lenders to find competitive rates for your Texas investment properties. No tax returns. Fast closings.
LET’S TALKDSCR Investor Loans Across Texas
Texas is one of the strongest real estate investment markets in the country. From Houston’s rental demand to Austin’s appreciation, DSCR loans give investors a fast, flexible path to ownership without personal income documentation.
🏙️ Major Texas Markets
We help investors finance rental properties in Houston, Dallas, San Antonio, Austin, Fort Worth, and across all Texas metros — with DSCR lenders familiar with local rental markets.
⚡ Scale Your Portfolio
Unlike conventional loans, most DSCR programs have no limit on the number of investment properties you can finance simultaneously — making it ideal for scaling a Texas rental portfolio.
🔄 Short-Term Rentals
Airbnb and VRBO investors in Texas markets like Austin, San Antonio, and the Hill Country can use short-term rental income data to qualify for DSCR loans.
Explore Texas Loan Programs
DSCR Loan FAQ — Texas Investors
Common questions from Texas real estate investors about DSCR financing. Click any question to expand.
What DSCR ratio do I need to qualify for an investor loan in Texas?
Most lenders require a minimum DSCR of 1.0, meaning rent equals your PITI payment. A ratio of 1.25 or higher is considered strong and may qualify for better rates. Some programs accept a 0.75 DSCR with compensating factors such as a higher down payment or additional reserves.
Can I use projected rent or do I need an existing lease?
Most DSCR lenders accept either current lease income or market rent from an independent appraisal. This means you can use a DSCR loan to purchase a Texas investment property that is not yet rented.
Do DSCR loans work for short-term Airbnb rentals in Texas?
Yes. Many DSCR lenders accept short-term rental income from Airbnb and VRBO. They typically use trailing 12-month income or projected income from a market analysis. Texas STR markets like Austin and San Antonio are well-recognized by most DSCR lenders.
What are the interest rates on DSCR loans?
DSCR rates are typically 0.5–1.5% higher than conventional investment loans because they do not verify personal income. Rates vary by lender, DSCR ratio, LTV, and credit score. Adam Bartling & Team shop multiple DSCR lenders to find you the most competitive rate.
How much down payment is required for a DSCR loan in Texas?
Most Texas DSCR programs require a minimum 20–25% down payment for investment properties. Borrowers with strong DSCR ratios, high credit scores, or significant cash reserves may qualify under certain programs with lower down payment options.
Can I close a DSCR loan in my LLC in Texas?
Yes. Most DSCR lenders allow you to close in the name of an LLC or other business entity. Texas investors often prefer this for liability protection and portfolio management. Confirm entity requirements with your loan officer before closing.
About Adam Bartling & Team
Retired Army Captain · Mortgage Loan Officer · Texas & 30+ States
As a retired Army Captain, Adam Bartling brings the discipline and strategic thinking of military service to mortgage lending. He works with Texas real estate investors to navigate DSCR loans, VA financing, and a full range of residential mortgage programs — shopping multiple lenders so you get competitive options, not a bank’s single offer.
Adam’s team has helped investors across Houston, Dallas, San Antonio, Austin, and throughout Texas secure DSCR loans for rental portfolios of every size — from first investment property to 20+ unit portfolios.
Adam Bartling & Team · Loan Officer NMLS# 2213358 · Serving Texas & 30+ States · Equal Housing Lender
This calculator provides estimates only and does not constitute a loan commitment or guarantee of rates. Actual loan terms, rates, and qualification requirements vary by lender and individual circumstances. DSCR loans are not available for primary residences.