DSCR Loans in Texas
Get approved for investment property financing in Texas using rental income alone. DSCR loans eliminate personal income verification requirements so you can close deals faster and scale your portfolio without traditional lending obstacles.
- Accessible for real estate investors
- Unlimited cash out
- No limit on the number of properties
- All types of rentals are eligible
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Benefits
Texas DSCR Loan Benefits
No proof of income required:
No income or employment verification required — no tax returns or pay stubs needed.
Streamlined approval process:
Faster approval and closing timelines with a streamlined application process.
Flexible qualification:
Flexible requirements ideal for self-employed investors or those with non-traditional income.
Interest-only options:
Interest-only payment options available through Griffin Funding.
Borrow in an LLC
Separate your personal and business assets by taking out a DSCR loan in the name of an LLC. DSCR loans can also be held in a revocable trust.
Unlimited cash-out:
Leverage your equity to make repairs and renovations and cover management expenses. No seasoning period is required.
How it Works
What Is a DSCR Loan in Texas?
A DSCR loan is a type of investment property financing that uses the property’s rental income to determine loan eligibility instead of the borrower’s personal income. The debt service coverage ratio (DSCR) measures how well the property’s income covers its debt payments. A DSCR of 1.0 or higher means the rental income is enough to cover the loan.
At Griffin Funding, we specialize in DSCR loans for rental properties and other non-QM options designed specifically for real estate investors. Whether you’re new to Texas real estate investing, expanding an existing portfolio, or simply exploring your mortgage options in Texas, a DSCR loan provides a flexible financing solution.
Key Texas DSCR Loan Features
- No traditional income verification
- Qualify based on cash flow (DSCR)
- Investment properties only
- Flexible qualification
- Streamlined approval process
Requirements
DSCR Loan Requirements in Texas
Rental properties only:
Income-generating single-family, multifamily, and commercial properties qualify for DSCR financing.
DSCR:
Most lenders require a DSCR of 1.25 or higher, though Griffin Funding may consider ratios below 1.0.
Down payment:
Minimum down payment starts at 15%, with 20–25% more common based on credit and DSCR.
Credit score:
A minimum credit score of 620 is required to qualify for a DSCR loan in Texas.
Appraisal:
A professional appraisal is required to confirm market value and income potential.
DSCR Rates
Today’s DSCR Loan Rates
Review today’s DSCR loan rates to help plan your next investment purchase or refinance.
Loan Options
DSCR Loan Types We Offer
Traditional DSCR Loan Programs
Buy an income-generating rental property.
Qualify for a cash-out refinance loan based on your DSCR.
Secure a better rate or term on your existing investment property loan.
Tap into the equity of your investment property.
Get an adjustable-rate DSCR loan with a mortgage rate based on the Secured Overnight Financing Rate (SOFR).
Unique DSCR Loan Programs
- Secure financing with DSCR below 1.0
- Down payment as low as 25%
- 700+ FICO
- Loan amount up to $1 million
- Cash-out as high as 75%
- Only 15% down payment required
- 740+ FICO
- Loan amount up to $1 million
- Qualify using both rental income and eligible assets
- Leverage liquid assets to increase your borrowing power
Calculators
DSCR Loan Calculators
Use these tools to estimate your DSCR for a new purchase or refinance.
FAQ
Frequently Asked Questions
The minimum down payment for a DSCR loan in Texas is typically 15% of the property’s purchase price, though 20-25% is more common for investment properties. The exact amount depends on factors like your credit score, the property type, your DSCR ratio, and the lender’s specific requirements. A larger down payment can help you secure better interest rates and loan terms.
Getting a DSCR loan in Texas is not particularly difficult if you meet the basic requirements. The process is often easier than conventional financing because you don’t need to provide tax returns or employment verification. However, you’ll still need a minimum credit score of 620, a sufficient down payment, and a property with strong rental income potential. Working with a lender experienced in DSCR loans, like Griffin Funding, makes the process much smoother.
Like any financing option, there are Texas DSCR loan pros and cons to consider. The main advantages are no income verification and faster approvals, while the tradeoffs include higher interest rates and larger down payments. Working with an experienced lender like Griffin Funding helps you weigh these factors and determine if a DSCR loan is the right choice for your investment strategy.
Yes, first-time investors can absolutely qualify for DSCR loans in Texas as long as they meet the minimum requirements. You don’t need prior real estate investing experience — the loan is based on the property’s income potential, not your investment history. Griffin Funding works with first-time investors regularly and can guide you through the entire process.
Most lenders require a DSCR of 1.25 or higher, which shows that your rental income exceeds your debt obligations by 25%. However, Griffin Funding offers more flexible DSCR loan requirements in Texas and can work with ratios below 1.0 in certain situations. Keep in mind that lower DSCR ratios may require larger down payments, higher interest rates, or additional cash reserves.
Use our DSCR loan calculator to estimate your ratio before applying.
DSCR loan rates in Texas through Griffin Funding are competitive and based on factors like your:
- Credit score
- Property type
- Down payment
- Debt service coverage ratio
- Pre-payment penalty type
While rates can vary, Griffin Funding works to offer flexible terms tailored to real estate investors. To get the most accurate rate, it’s best to apply or speak with a loan specialist who can review your full financial profile.
Yes, Griffin Funding offers interest-only DSCR loans in Texas for qualifying investors. This option can improve monthly cash flow by reducing payments during the term. We assess the property’s rental income, not your personal income, to qualify. Typical guidelines include:
- Minimum 620 credit score
- 20–25% down payment
- DSCR based on verified or projected rental income
Interest-only DSCR loan options in Texas can be a strategic choice for investors looking to optimize cash flow in markets like Dallas, Austin, or Houston.
Absolutely. Griffin Funding supports DSCR loans for short‑term rentals, including Airbnbs and VRBOs, across Texas. We underwrite based on projected or documented rental income, via AirDNA reports, appraiser surveys, or your own hosting history, rather than personal income.
Our short-term rental DSCR financing programs in Texas include competitive rates, fast closing, and flexible DSCR requirements (typically starting at 1.0). DSCR loans for Airbnb are perfect for Texas markets with strong tourism, like Austin or San Antonio.
Yes! Griffin Funding offers both rate-term and cash-out refinance DSCR loans in Texas. You can convert your existing rental property into a non‑QM DSCR loan, no tax returns required, relying solely on the property’s income.
A DSCR refinance in Texas allows you to unlock equity, reduce payments, or switch to interest-only terms while keeping the loan structured through an LLC.