DSCR Loans Texas: Investment Property Financing Guide 2025
Texas is America's second-largest real estate market and a powerhouse for investment property opportunities. DSCR loans have become the financing method of choice for Texas investors, offering no income verification, fast approvals, and the ability to qualify based solely on rental income. This comprehensive guide covers everything you need to know about DSCR loans in the Lone Star State.
Why Texas is Perfect for DSCR Loans
No state income tax, strong job growth, population influx, and diverse markets from Dallas to Houston make Texas ideal for DSCR loan investing. With property values 30-40% below California, your DSCR ratios work even better in Texas markets.
Top Texas Markets for DSCR Loans
Dallas-Fort Worth
Hot Areas: Frisco, Plano, McKinney, Arlington
Houston
Hot Areas: The Woodlands, Katy, Sugar Land, Pearland
Austin
Hot Areas: Round Rock, Cedar Park, Pflugerville, Georgetown
San Antonio
Hot Areas: Stone Oak, Alamo Ranch, Schertz, New Braunfels
DSCR Loan Requirements in Texas
Standard Requirements
- Credit Score: 620 minimum (640+ for best rates)
- Down Payment: 20-25% (lower than CA!)
- DSCR Ratio: 1.0+ (1.25+ for best pricing)
- Reserves: 6 months PITIA
Texas Advantages
- No State Income Tax: Better cash flow
- Lower Property Taxes: Than CA (varies by county)
- Homestead Exemption: Tax benefits available
- Landlord-Friendly: Easier eviction process
Ready to Invest in Texas Real Estate?
Get pre-approved for a DSCR loan in 24-48 hours. No tax returns, no income verification—just your property's rental income.