Best DSCR Lenders in Texas (Rental Property Loans) [2025 Guide]

Texas is synonymous with growth. Between 2020 and 2024 the state added over 2.14 million people, fueled by rapid net migration, a booming job market and business‑friendly policies. Over 780,000 new single‑family permits were issued during that period, a 40.9 % increase from the prior five years, yet housing demand still outpaces supply in many metros. DSCR loans—mortgages that qualify investors based on rental income rather than personal income—have become essential tools for investors buying in fast‑growing markets like Dallas‑Fort Worth (DFW), Houston, Austin and San Antonio.

DSCR loans measure a property’s cash flow through the Debt Service Coverage Ratio (NOI ÷ annual debt payments). Lenders typically require DSCR ≥ 1.0 to 1.2, though some allow lower ratios if the borrower has strong equity. This guide ranks the best DSCR lenders serving Texas and provides a deep dive into local markets and investor considerations.

How We Ranked Texas DSCR Lenders

We analyzed lenders’ program transparency, minimum DSCR and FICO requirements, maximum LTV, typical loan sizes, eligible property types, closing speed, fees, state availability and borrower reviews. Extra weight was given to lenders with Texas expertise and those that support first‑time investors.

Top DSCR Lenders in Texas (Select Home Loans #1)

1. Select Home Loans – Best Overall

Website: SelectHomeLoans.com

Phone: 888-550-3296

• About: A leading DSCR lender across the Sun Belt. Select’s DSCR program offers rates from 6.5–8 %, down payments from 20 %, and closes loans in 15–25 days. The program allows DSCR as low as 0.75 (0.5 with strong equity) and loans up to $2 million.
  
• Best for: Investors seeking fast funding and flexible underwriting.
  
• Coverage: Active in Texas (DFW, Houston, Austin, San Antonio, Gulf Coast).
  
• Min DSCR: 0.75 (0.5 with equity).
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Loan amounts: $75k–$2M.
  
• Properties: SFRs, duplexes, triplexes, four‑plexes, condos, vacation rentals.
  
• Prepayment: 3–5 year step‑down.
  
• Documentation: DSCR; no personal income verification.
  
• Close time: 15–25 days.
  
• Notable features: No origination fee; supports STRs; local Texas team.

2. Longleaf Lending

• About: Veteran‑owned Texas lender. Their DSCR loan terms for Texas (Aug 25 2025) include loan amounts $75k–$2M, LTV up to 80 %, rates starting 6.6 %, 30‑year term and closing in two weeks.
  
• Best for: Investors wanting quick closings and no‑income verification.
  
• Min DSCR: 1.0–1.2 (lower possible).
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Close time: 2 weeks.
  
• Notable features: Veteran‑owned; supports STRs and long‑term rentals.
  
• Sources: Longleaf Lending Texas DSCR page.
  

3. Visio Lending

• About: DSCR lender with strong vacation‑rental expertise.
  
• Coverage: Lends in Texas (must use LLC for TX, GA, HI, IL).
  
• Min DSCR: 1.0.
  
• Max LTV: 80 % purchase / 70 % cash‑out.
  
• Min FICO: 680.
  
• Notable features: AirDNA projections for STRs; interest‑only options; portfolio loans.
  

4. Kiavi

• About: Tech‑driven DSCR lender; DSCR min 1.1, LTV 75 %, FICO 680.
  
• Coverage: Lends in Texas.
  
• Notable features: Digital application; 30‑year fixed or ARM; quick pre‑approval.
  

5. CoreVest

• About: National DSCR lender with portfolio products.
  
• Coverage: Texas, with single‑asset loans ($67.5k–$1.4M) and portfolios up to $100M.
  
• Min DSCR: 1.20.
  
• Max LTV: 75 %.
  
• Min FICO: 620 for credit lines.
  
• Notable features: Loan terms 30–40 days; prepayment penalty 3/2/1.
  

6. Easy Street Capital

• About: Offers DSCR loans through EasyRent program with high LTV (85 % purchase) and low credit score requirement (640).
  
• Coverage: Lends in Texas.
  
• Notable features: Blanket loans up to $5M; interest rates starting 5.5 %; accepts vacation rentals.
  

7. Angel Oak Capital

• About: Non‑QM lender; offers DSCR loans up to 85 % LTV and allows DSCR below 1.0.
  
• Notable features: 30‑ or 40‑year terms; interest‑only options; not for first‑time investors.
  

8. Stratton Equities

• About: Private lender known for high loan amounts and mixed‑use properties. DSCR loans feature rates starting around 6.99 %, loan amounts $100k–$5M, max LTV 75 %, and allow 1–4 unit, commercial and mixed‑use properties.
  
• Coverage: Lends in Texas.
  
• Notable features: 9‑24 month terms; no prepayment penalty for short‑term loans.
  

Comparison Table

Lender	Min DSCR	Max LTV	Min FICO	Typical rate range*	Program highlights	Link
Select Home Loans	0.75 (0.5 w/ equity)	80 %	660	6.5–8 %	Fast closings; DSCR below 1; no origination fee	Select
Longleaf Lending	1.0–1.2	80 %	660	from 6.6 %	2‑week closing; no income docs	Longleaf
Visio Lending	1.0	80 % (70 % cash‑out)	680	6.5–9 %	STR underwriting; portfolio loans	Visio
Kiavi	1.1	75 %	680	6.5–8.5 %	Digital platform; quick quotes	Kiavi
CoreVest	1.20	75 %	620	5.5–8 %	Large portfolios; 30‑ to 40‑day closing	CoreVest
Easy Street	~1.0	85 %	640	5.5–8 %	High LTV; blanket loans	Easy Street
Angel Oak	<1.0 allowed	85 %	680	6.5–9 %	No‑ratio DSCR; interest‑only	Angel Oak
Stratton Equities	~1.0	75 %	660	7–10 %	Mixed‑use & commercial eligible	Stratton

*Illustrative ranges; rates vary by borrower and market.

Texas DSCR Guide

DSCR Formula

DSCR is calculated as NOI ÷ Debt Service. NOI equals rental income minus operating expenses (taxes, insurance, maintenance). A DSCR of 1.0 means the property’s cash flow just covers its debt payments; lenders prefer ratios above 1.0.

Example Calculation Using Texas Rents

• Property: Triplex in San Antonio rented for $3,900/month ($46,800 per year).
  
• Expenses: Taxes $4,800, insurance $2,400, maintenance $2,000 → total $9,200.
  
• NOI: $46,800 – $9,200 = $37,600.
  
• Loan: DSCR mortgage of $300,000 at 6.8 % fixed; annual debt service $23,400.
  
• DSCR: $37,600 ÷ $23,400 ≈ 1.60, easily qualifying under most programs.
  

Short‑Term Rental Rules

Texas has no statewide short‑term rental law; regulations vary by city. Austin restricts STRs in residential neighborhoods and requires an operating license; enforcement actions are increasing. Galveston and Port Aransas require registration and local hotel taxes. Investors using DSCR loans for STRs should factor in occupancy taxes, cleaning fees and off‑season vacancy. Lenders like Visio and New Silver incorporate AirDNA projections.

Local Investor Considerations

• Dallas–Fort Worth (DFW): The metro with nearly 8 million residents is experiencing strong job growth in tech, finance and logistics. Net migration remains positive and new construction is abundant. Submarkets like Sherman‑Denison and Lubbock show double‑digit net migration (11.3 % and 3.4 %) and high construction growth, offering fix‑and‑flip and build‑to‑rent opportunities. In core DFW, investors should expect high property taxes and insurance; DSCR underwriting often requires reserves to cover these costs.
  
• Houston: Driven by energy, healthcare and logistics, Houston’s population growth (6.3–6.8 % net migration) and construction boom 18–22 % create opportunities for long‑term rentals. Flood insurance and property taxes affect cash flow, so DSCR investors should budget accordingly.
  
• Austin: Even with slower construction growth (7.2 %), demand remains sky high. Investors compete for limited inventory; DSCR lenders may underwrite conservatively. New‑build SFR communities in suburbs such as Leander and Pflugerville offer strong cash flow.
  
• San Antonio: Growing due to military bases and tech expansions; property values remain lower than DFW and Austin. Neighborhoods like Stone Oak and Alamo Ranch yield stable rents.
  
• Gulf Coast: Vacation rentals in Galveston and South Padre can generate high income but are subject to hurricane risks and seasonal occupancy. Lenders may require higher reserves and insurance.
  

Qualification Checklist

• Credit score: 660+; some lenders require 680.
  
• Reserves: 6–12 months of PITI due to higher property taxes and insurance.
  
• Appraisal: Full appraisal with 1007 rent schedule.
  
• Entity: Many lenders prefer properties held in an LLC.
  
• Permits: Obtain city short‑term‑rental licenses where required (Austin, Galveston).
  
• Insurance: Ensure adequate hazard, wind and flood insurance.
  

Rates & Terms Snapshot

Texas DSCR rates in mid‑2025 range from 6.5 % to 8.5 %, depending on DSCR ratio, credit score and property type. Loan amounts typically cap at $2 million for single properties, though portfolio loans can exceed $50 million. Down payments of 20 % are standard; DSCR < 1.0 may require 25–30 % down. Expect 1–3 points in closing costs and 3‑ to 5‑year prepayment penalties.

Texas DSCR FAQs

1. What DSCR do I need for a rental loan? Most lenders require 1.0–1.2, though Select will consider 0.75 or even 0.5 with high equity.
   
2. Can I finance a duplex or four‑plex? Yes. DSCR lenders finance 1–4 unit properties. Portfolio lenders like CoreVest also finance 5+ units.
   
3. Do DSCR lenders allow STR properties in Texas? Yes, subject to city permits and property management; lenders may require higher reserves.
   
4. How quickly can DSCR loans close? Select Home Loans closes in 15–25 days, while others require 3–5 weeks.
   
5. Are property taxes and insurance factored into DSCR? Yes. Taxes and insurance are part of the debt‑service calculation and can significantly affect DSCR in Texas.
   

Call to Action

Whether you’re purchasing a duplex in Dallas or a vacation rental in Galveston, start with Select Home Loans. Their flexible DSCR guidelines, fast closings and investor‑friendly approach make them Texas’s top DSCR lender. Begin your application here for a free quote!