DSCR Rental Property Loans for Texas Investors

Strategic Rental Property Financing Designed for Texas’ Fast-Growing Markets

Texas is one of the top states in the country for real estate investors, offering strong population growth, job creation, and diverse rental demand. With major metro areas, large universities, and a business-friendly environment, Texas provides consistent opportunities for investors focused on long-term rental income and portfolio scalability.

Cape Henry Capital provides Texas DSCR rental property loans designed specifically for real estate investors. Our DSCR loans in Texas qualify borrowers based on property cash flow rather than personal income, making it easier to finance and grow a rental portfolio across Texas’s most desirable markets.

Whether you’re investing in workforce housing in major metros or long-term rentals near Texas universities, our Texas investment property loan programs are built to support your strategy.

What Is a Texas DSCR Loan?

A Texas DSCR loan (Debt Service Coverage Ratio loan) is a type of investment property loan that qualifies based on the rental income generated by the property.

These loans are ideal for:

• Real estate investors

• LLCs and entities

• Investors with one or multiple rental properties

Why DSCR Loans Compliment Texas Rental Investing

• Approve Based on Property Cash Flow, Not W-2s

DSCR loans prioritize your property’s ability to generate rent over your personal tax returns or income statements — ideal for investors scaling portfolios across Texas metros.

• Flexible Qualification Across Growing Markets

Markets like San Antonio, Austin, Dallas-Fort Worth, and Houston offer diverse opportunities — from entry-level rentals to high-demand multifamily units.

• Close Faster & Scale Smarter

Streamlined underwriting and flexible terms help you act quickly in competitive Texas markets.

• No State Income Tax Improves Cash-on-Cash Returns

Texas’ tax-friendly environment enhances investor returns by reducing holding costs.

Understanding DSCR: Texas DSCR Loan Basics

DSCR loans measure the cash flow of a rental property relative to debt obligations — demonstrating to lenders that rent income can cover mortgage payments, taxes, insurance, and HOA costs without reliance on borrower income.

How DSCR Loans Work in Texas

• Loan amounts typically range from $100,000 to several million dollars depending on property type and market.

• DSCR Thresholds: Most loans require a DSCR of 1.0 or higher; stronger cash flow can improve pricing and terms.

• Versatile Terms: Options include fixed and adjustable rates with terms that match your investment strategy.

• Close in as little as 14–21 days with streamlined documentation.

Eligible Texas Rental Property Types

• Single-family homes

• Townhouses and condos

• Small multifamily properties (2-4 units) - Duplex, Triplex, Quadplex

• Portfolio roll-outs across multiple properties

Guide to Calculating Your DSCR Score

DSCR = Annual Rental Income ÷ Annual Debt Service

• Estimate Annual Rental Income

Include rent from all units and any ancillary income.

• Calculate Annual Debt Payments

Add principal, interest, taxes, insurance (PITI), and any HOA fees.

• Divide Income by Debt

A DSCR ≥ 1.0 means your rental income meets or exceeds debt service — a strong indicator for lenders.

Use our DSCR Calculator to quickly assess your property’s qualification potential.

Top Texas Rental Markets We Serve

• San Antonio — Stable Growth & Affordability

San Antonio continues to see strong population and rental growth, with rising demand and steady occupancy — a prime market for both entry investors and portfolio expansion.

• Austin — Tech-Fueled Rental Demand

Austin’s booming job market and quality of life drive rental demand, especially in urban and tech-oriented neighborhoods. Rental rates and occupancy remain strong as employers expand in the region.

• Dallas-Fort Worth — Expansive Growth Corridor

The Dallas-Fort Worth metroplex attracts residents and renters with diversified jobs, steady population inflows, and a wide range of investment property types from suburbs to central districts.

• Houston — Affordable Inventory & Big-City Demand

Houston offers a blend of affordability and strong job growth, particularly in energy, healthcare, and logistics — creating stable demand for long-term rental homes.

*The rates featured above are the lowest possible rate. To qualify, borrowers must meet underwriting requirements. Not all borrowers will qualify and not all borrowers that qualify will receive the lowest rate. Loan-to-Value (LTV) can vary based on property, market conditions, borrower credit and other underwriting critieria.

Get Approved for a Texas DSCR Loan

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Check Out Our DSCR Loan Calculators

Save time crunching numbers - Our calculators can tell you your DSCR Score, Estimated monthly payment, Cap Rate,... and more! Need to rehab the propety before renting? Don't forget to check out our Bridge Loan Fix & Flip Calculator too!

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Buy or Refinance Texas Rentals with DSCR Loan

Purchasing a Rental Property

• Qualify using projected rent — even if the property isn’t leased yet

No lease, no problem. Borrowers can often use the estimated market rent form the appraisal.

• No need for personal income verification

The DSCR score of the property help alleviate the requiremet for pay-stubs or W2's.

• Competitive pricing based on cash flow strength

A higher DSCR score can often lead to better pricing.

Refinancing Existing Rentals

• Pull equity for new acquisitions

The proceeds from a DSCR cash-out refinance can be used to help maintain or for down-payment on a new investment property.

• Lower your rate or adjust your terms

Rate & term refinances help borrowers reduce their monthly payments when rates move lower.

• Expand your portfolio without tapping personal liquidity

Our fast refinance process can help you use the cash-out from you existing portfolio to fund new investment purchases.

Start Scaling in Texas Today

Ready to capitalize on Texas’ booming rental markets and unlock financing based on property performance? Cape Henry Capital is here to help. Secure faster approvals, flexible terms, and expert guidance so you can invest with confidence across San Antonio, Austin, Dallas, Houston, and beyond.

DSCR LOANS TEXAS FAQ'S

• What is a DSCR loan in Texas?

A DSCR loan allows Texas real estate investors to qualify for financing based on rental income instead of personal income or tax returns.

• Do DSCR loans require income verification?

No. DSCR loans are underwritten primarily on property cash flow, not W-2s or tax returns.

• Can I use a DSCR loan to buy a rental property in San Antonio?

Yes. DSCR loans can be used to purchase rental properties across Texas, including San Antonio and other high-growth markets.

• What DSCR ratio is required?

Most Texas DSCR loans require a DSCR of 1.0 or higher, though exceptions may be available with higher down payments.

• What are DSCR Loan Requirements in Texas?

Contact Us to speak with DSCR Loan Expert for all of our DSCR loan products and to learn specific DSCR loan requirements.