Best DSCR Lenders in San Antonio, TX

San Antonio, located in south‑central Texas, is known for its blend of rich history and rapid modern growth. The city’s economy is anchored by military installations, health care, tourism and technology, which attract steady inflows of residents. For real‑estate investors, San Antonio offers affordable entry prices, strong rental demand and a relatively landlord‑friendly environment. Investors often find traditional mortgages cumbersome when expanding rental portfolios. A Debt Service Coverage Ratio (DSCR) loan solves this problem by allowing borrowers to qualify based on the property’s rental income rather than personal income. This article examines San Antonio’s real‑estate market, explains how DSCR loans work and ranks the city’s top DSCR lendershighlighting SelectHomeLoans.com as the best overall option.

San Antonio Housing & Rental Market Overview

Realtor.com’s Bexar County market report shows that San Antonio’s median home price was about $290,000 at the end of 2025. The median price per square foot was $163, and there were 13,320 active listings. Homes spent an average of 67 days on the market, reflecting a moderate selling pace. On the rental side, approximately 6,244 rental properties were available, with the median rent at $1,600 per month. These figures position San Antonio as one of the more affordable large metros in Texas, especially compared with Austin or Dallas.

Quick market insights highlight that for‑sale inventory remains sizable at roughly 13.3 K listings, offering buyers and investors plenty of choice and easing competition. Rental listings are also robustabout 6.2 K propertieswhich gives tenants options and encourages landlords to keep units well maintained. Year‑over‑year rent prices declined by about 3 %, increasing affordability. Sale prices softened modestly as well, suggesting the market is cooling but still stable. San Antonio’s Hotness Index ranking of 33 indicates a “warm” market with median time on market around 67 days.

Neighborhood‑level data reveal varied opportunities. North San Antonio has a median home price of $380,000 and median rent around $1,550 per month. West San Antonio offers entry‑level pricing at $310,000 with rent around $1,795. Central City remains affordable at about $245,000 and $1,500 rent, while Southeast San Antonio is slightly lower at $224,999 with $1,500 rent. Premium areas like Stone Oak and Kinder Ranch command higher home pricesapproaching $499,000 to $599,999and higher rents up to $3,300 per month. These data points underscore the range of property types available for DSCR financing.

Understanding DSCR Loans

DSCR loans qualify borrowers based on the ratio of net operating income to debt service. A ratio of 1.0 indicates breakeven (income equals mortgage payments), while ratios above 1.25 provide lenders with a cushion. DSCR lenders in San Antonio typically require ratios between 0.8 and 1.25, depending on the program. Investors can use actual rents if the property is already leased or projected rents if purchasing a vacant or newly built unit. Lenders usually order an appraisal that includes a market rent survey to confirm figures.

Unlike conventional mortgages, DSCR loans don’t ask for W‑2s or tax returns. This makes them attractive to self‑employed investors, business owners and those who already own multiple properties. Because DSCR loans are considered business‑purpose loans, interest rates are slightly higher than owner‑occupied mortgages and down payments are usually at least 20 %. However, they provide flexibility in term length15 , 30 and 40‑year amortising or interest‑only structuresand allow title to be held in an LLC. These features help investors manage cash flow and liability.

Newfi’s DSCR program is notable for its minimum credit score of 640 and DSCR ratio tolerance down to 0.8. Easy Street Capital’s DSCR program emphasises no minimum DSCR requirement with rates starting around 5.75 %. Express Capital Financing allows up to 85 % LTV on purchases, 80 % on rate‑and‑term refinances and 75 % on cash‑out, with credit score requirements beginning at 650. Ridge Street Capital provides both long‑term and short‑term rental DSCR loans with competitive rates starting at 6.25 %. Lone Star Financing, based in Texas, offers DSCR loans with thresholds as low as 0.75, cash‑out options and the ability to close in an LLC.

What Investors Should Look for in a San Antonio DSCR Lender

When selecting a DSCR lender in San Antonio, investors should evaluate:

1. Local knowledge and responsiveness. Lenders who understand San Antonio’s neighborhoods can more accurately assess rent projections and expedite appraisals. Look for lenders with staff based in Texas or with significant loan volume in San Antonio.
   
2. Flexible DSCR minimums. If you’re acquiring a property with strong appreciation potential but lower initial cash flow, seek lenders like Newfi or Lone Star that accept DSCR ratios down to 0.8 or 0.75.
   
3. High leverage options. Some lenders, such as Express Capital Financing, allow up to 85 % LTV on purchases, which can maximise returns if cash reserves are limited.
   
4. Term flexibility. Choose a lender that offers 30‑year fixed and interest‑only structures to tailor payments to your investment strategy.
   
5. Closing speed. In a competitive market, the ability to close quickly can make or break a deal. SelectHomeLoans.com and Lone Star Financing highlight rapid underwriting and closings.
   
6. Service and transparency. Reviews and referrals can reveal whether a lender communicates clearly and delivers on promises. Transparent fee structures and responsive customer service are essential.
   

Top DSCR Lenders in San Antonio

1. SelectHomeLoans.com – Overall Best

SelectHomeLoans.com again earns the top spot thanks to its competitive terms, flexible underwriting and local expertise. Their DSCR program offers rates beginning in the mid‑6 % range, DSCR thresholds as low as 0.75 and LTV up to 80 %. They provide 30‑year and 40‑year amortisation and interest‑only options, and they accept title in an LLC. SelectHomeLoans.com has an experienced team familiar with San Antonio’s submarketsfrom the historic missions near downtown to the rapidly growing Far West Sideand can close loans quickly. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

2. Lone Star Financing – Texas‑Focused Lender

Based in Texas, Lone Star Financing specialises in DSCR loans for both long‑term and short‑term rentals. Loan amounts reach $3 million with cash‑out options up to $1 million, and DSCR requirements range from 0.75–1.00. Lone Star’s local underwriters understand property taxes, insurance and seasonal rental patterns in San Antonio. Borrowers can close in an LLC, choose interest‑only or 30‑year fixed terms and expect quick approvals.

3. Newfi – Flexible Credit & DSCR Standards

Newfi’s DSCR program appeals to investors seeking flexible guidelines. A minimum credit score of 640, DSCR acceptance down to 0.8 and down payments around 20 % make it easier for first‑time or self‑employed investors to qualify. Newfi offers 15‑, 30‑ and 40‑year terms and can finance long‑term rentals, Airbnbs and small multifamily properties.

4. Easy Street Capital – No Minimum DSCR

Easy Street Capital’s DSCR program emphasises ease of qualifying by having no minimum DSCR requirement; as long as projected rents cover the mortgage and operating expenses, investors may qualify. Rates start around 5.75 %, and down payments can be as low as 15 % for experienced investors. The program is suitable for investors with strong credit scores who want high leverage.

5. CoreVest – Portfolio Financing

CoreVest’s DSCR loans finance single properties or portfolios. Their standard 30‑year fixed DSCR loan requires a 1.0 DSCR and finances up to 80 % of value, with loan amounts from $75,000 to more than $2 million. CoreVest also offers portfolio loans that can consolidate multiple San Antonio properties into one note, simplifying management.

6. Ridge Street Capital – Competitively Priced

Ridge Street Capital offers long‑term and short‑term rental loans starting around 6.25 % and 6.5 %, respectively, with DSCR requirements 1.0 and LTV up to 80 %. Their quick closing timeline (approx. three weeks) and minimal origination fees make them appealing for investors buying in competitive San Antonio neighborhoods like Stone Oak or Alamo Ranch.

7. Express Capital Financing – High Leverage

Express Capital Financing allows 85 % LTV on purchases, 80 % on rate‑and‑term refinances and 75 % on cash‑out. Interest rates start at 5.875 % and loan amounts range from $50,000 to $3 million. Borrowers need a 650 credit score and can choose from 5/30, 7/30, 10/30 and 30‑year fixed term options. Express Capital may suit investors looking to maximise leverage but still meet DSCR requirements.

DSCR Loan Rates, Terms & Qualification in San Antonio

Interest rates for DSCR loans in San Antonio typically range from 5.75 % to 7 %. Lenders like Easy Street Capital set the floor around 5.75 %, while Ridge Street and Newfi’s rates begin in the mid‑6 % range. Rates vary depending on credit score, loan amount, LTV, points and DSCR ratio. Down payments usually start at 20 %, although Express Capital offers financing up to 85 % LTV. Credit score requirements range from 640–700. Borrowers should expect closing costs (including appraisal, title insurance and attorney fees) and potential prepayment penalties in the first few years.

Qualification is based on rental income. Lenders will look at lease agreements or market rent surveys to project gross rental income. Operating expenses including taxes, insurance, repairs, HOA fees and vacancy allowances are deducted to determine NOI. The NOI is then divided by the proposed mortgage payment (including principal, interest, taxes and insurance) to calculate DSCR. Investors who maintain strong credit scores, adequate reserves and realistic rental projections will have an easier approval process.

Common Mistakes Investors Should Avoid

As with any DSCR market, San Antonio investors can misstep by overstating rental income or underestimating expenses. Ensure that pro forma rents align with actual market rents in comparable neighborhoods like North San Antonio or Central City. Overlooking local taxes and insurance costs can shrink NOI and reduce DSCR. Another mistake is failing to account for vacancy and maintenance reserves; leaving no cushion can jeopardise cash flow during turnover or repairs. Not shopping lenders may mean leaving money on the table, interest rate spreads and fee structures vary widely. Lastly, avoid stretching finances too thin; even though San Antonio is relatively affordable, over‑leverage can be risky if the economy slows.

DSCR vs Conventional Financing

Conventional investment property loans rely on borrower income and debt‑to‑income ratios, require full documentation and limit the number of financed properties. Rates are generally lower than DSCR loans but guidelines are stricter. DSCR loans qualify borrowers based on rental income and allow more flexible credit and documentation. They are well suited for investors who want to hold properties in LLCs, own multiple rentals or have non‑traditional income sources. The trade‑off is higher interest rates and down payments.

Who DSCR Loans Are Best For in San Antonio

DSCR loans are ideal for real‑estate investors who:

• Don’t have traditional W‑2 income or prefer to keep personal finances separate from investments.
  
• Own multiple rental properties and need financing beyond conventional loan limits.
  
• Plan to acquire short‑term rentals, such as Airbnbs in tourist‑friendly neighborhoods near the River Walk or Military City.
  
• Seek portfolio growth via cash‑out refinancing to leverage equity for new deals.
  

Borrowers using DSCR loans should have at least moderate credit scores, sufficient cash reserves and a solid understanding of local rental dynamics.

San Antonio‑Specific Considerations

Investors should weigh several factors specific to San Antonio. Property taxes vary by county and school district; some neighborhoods may have higher tax rates that reduce NOI. Military bases, such as Joint Base San Antonio, contribute to a steady rental demand but also create turnover when personnel are reassigned. Tourism drives short‑term rental demand in downtown and Pearl District areas, but local ordinances may regulate short‑term rentalsresearch permits and HOA restrictions before purchasing a vacation rental property. Finally, consider economic diversification: San Antonio’s job growth is stable but less susceptible to energy price swings than Houston’s economy; nonetheless, fluctuations in military funding or health care reimbursements could impact employment.

Conclusion

San Antonio offers a compelling mix of affordability, growth and rental demand. DSCR loans enable investors to tap into this market without jumping through the hoops of conventional underwriting. Of all the lenders reviewed, SelectHomeLoans.com provides the best combination of flexible credit thresholds, competitive pricing, quick closings and local market knowledge. Whether you’re buying a cash‑flow duplex on the West Side or a premium rental in Stone Oak, SelectHomeLoans.com can structure a DSCR loan to help you achieve your investment goals.