Investor Loans in Texas. Qualify on Rent, Not W-2s.
The Debt Service Coverage Ratio loan qualifies based on the rental income of the property, not your personal income or employment. Scale your portfolio without personal income limitations.
A DSCR loan — Debt Service Coverage Ratio loan — is a Non-QM mortgage designed for real estate investors. Instead of using your personal income, tax returns, or employment history to qualify, the lender evaluates whether the rental income from the property is sufficient to cover the mortgage payment. If the property pays for itself, you can qualify regardless of what you earn personally.
DSCR is calculated by dividing the gross monthly rent by the monthly mortgage payment (principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means the rent exactly covers the payment. Most programs require 1.0 or above, though some lenders offer below-1.0 DSCR programs for strong borrowers. Kris works with multiple wholesale DSCR lenders to find the best terms for your investment strategy.
Who Qualifies?
Purchasing or refinancing a 1-4 unit investment property
Property DSCR of 1.0 or higher (below 1.0 programs available)
Credit score of 620 or higher (680+ for best pricing)
Down payment of 20-25% for purchase (25% for 2-4 unit)
LLCs, trusts, and corporations can be on title
Short-term rental income accepted by select lenders
DSCR below 1.0 requires larger down payment or premium rate
Appraisal must include rental market analysis
Frequently Asked Questions
DSCR stands for Debt Service Coverage Ratio. It measures whether the rental income from a property is sufficient to cover its mortgage payment. DSCR = Gross Monthly Rent divided by Monthly PITIA (principal, interest, taxes, insurance, and HOA). A DSCR of 1.25 means the rent is 25% more than the mortgage payment.
Most lenders require a minimum DSCR of 1.0, meaning rent equals or exceeds the monthly mortgage payment. Some programs allow DSCR of 0.75 or even lower for strong borrowers with larger down payments. Kris can match you with the right lender based on your property income profile.
Yes. DSCR loans are one of the few mortgage programs that allow LLCs, corporations, and trusts to be on title. This is critical for investors who hold properties in entities for liability protection and tax planning purposes.
Yes. Many DSCR lenders accept short-term rental income using data from platforms like Airbnb and VRBO. Either market rent from a comparable analysis or actual platform revenue can be used for qualifying income, depending on the lender.
Unlike conventional loans that limit investors to 10 financed properties, DSCR programs typically have no limit on the number of properties. Each property qualifies on its own cash flow, making DSCR the preferred tool for investors building large portfolios.
A DSCR loan is a long-term mortgage with 30-year terms and competitive rates. A hard money loan is typically short-term, higher rate bridge financing. DSCR loans are the right tool for buy-and-hold investors, while hard money is for fix-and-flip or short-term situations.
