Texas DSCR Loans: No Tax Returns, 1.2 DSCR Min, Rates from 6.25%
Rental property financing for Texas investors qualified on property cash flow — not personal income, W-2s, or tax returns. Serving Houston, Dallas, San Antonio, Austin and the rest of Texas. If the property cash-flows at 1.2× the mortgage, you may qualify.
- 1.2 DSCR minimum
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- 680+ FICO
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- Refi from 6.25%
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- 21–30 day close
Can I get a DSCR rental loan in Texas?
Yes. DSCR loans in Texas qualify investors based on property cash flow with a 1.2 DSCR minimum, 680+ FICO, and 20–25% down. No tax returns, W-2s, or DTI calculation required. 1–4 unit residential and 5+ unit multifamily eligible. Refi rates start at 6.25%.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 2026.
Texas Rental Market Snapshot
State-level data DSCR underwriters use to size Texas rental deals.
Texas is the #1 DSCR origination state by unit count. No state income tax, no rent control, the fastest eviction process in the major-metro footprint, and a deep four-city base of Houston, DFW, San Antonio, and Austin make TX the default starting point for new DSCR investors. The catch is Texas property taxes — at 1.6–2.5% of assessed value, taxes can push 25–35% of PITIA. Always verify current ad valorem before underwriting.
Major Texas Markets We Fund
Active DSCR deal flow across Texas's core rental markets. Same requirements — 1.2 DSCR, 680+ FICO, 20–25% down — apply statewide.
| Metro | Median Price | Gross Yield | DSCR Investor Notes |
|---|---|---|---|
| Houston | $285K | 6.5–8.5% | Largest TX market, energy/medical employment, deep SFR rental inventory |
| Dallas | $365K | 5.5–7.0% | DFW Metroplex — broadest job base, fastest jumbo growth, premium suburb demand |
| San Antonio | $265K | 6.5–8.0% | Military rental demand from JBSA, lower entry price, growing STR market downtown |
| Austin | $555K | 4.5–5.5% | Tech-driven premium pricing, lower yields, STR Type-2 permit cap limits supply |
Texas Eviction Timeline & Landlord Posture
How Texas courts handle non-payment evictions — material to DSCR loss-severity assumptions.
Texas Property Code Chapter 24 allows a 3-day notice to vacate followed by forcible detainer in JP court. Hearings are scheduled 10–21 days after filing. Among the fastest landlord-remedy jurisdictions in the country.
Texas Rate Adjustment vs National Baseline
Fastest eviction process and rent-control preemption keep loss severity below national average; Texas property tax burden is the main DSCR-denominator drag.
Final pricing depends on FICO, LTV, DSCR, property type, and program. Baseline national DSCR refi rates start at 6.25% as of May 2026.
DSCR Lenders Active in Texas
The non-bank DSCR programs we see most frequently funding Texas rental deals. PeerSense matches your scenario across this lender set rather than locking you into one.
- Kiavi
- Visio Lending
- Lima One
- Velocity Mortgage Capital
- CoreVest
- RCN Capital
PeerSense is independent — not a lender. Lenders listed are programs we have funded Texas deals through; specific terms vary by file.
Texas DSCR Loan Requirements
| Requirement | Minimum | Notes |
|---|---|---|
| DSCR | 1.20 | 1.00+ allowed with 740 FICO or 30% down |
| Credit Score | 680 FICO | 640–679 by exception, lower LTV |
| Down Payment | 20–25% | 25% if <1.2 DSCR or <700 FICO |
| Property Type | 1–4 units or multifamily | Condos, townhomes, STRs OK where legal |
| Income Docs | None | No tax returns, W-2s, DTI check |
| Reserves | 6 months PITIA | Checking, savings, stocks qualify |
| Close Time | 21–30 days | Cash-out refi: 14–21 days |
Not a commitment to lend. Rates and terms subject to underwriting. See our full DSCR loan guide for the complete program.
Get Texas DSCR Loan Terms
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Related DSCR Resources
- DSCR Loans Hub — Programs & Rates
- DSCR Rental Loans — Full Program Guide
- DSCR for Airbnb / Short-Term Rentals
- DSCR Cash-Out Refinance
- DSCR Jumbo Loans ($1M+)
- DSCR for LLCs / Entity Title
- Best DSCR Lenders 2026
- DSCR Loans — Complete Guide
- DSCR Calculator — Test Your Property
- Fix & Flip Loans — Bridge to DSCR Exit
- Bridge Loans — Short-Term Rental Acquisition
- DSCR vs Conventional Mortgage