Non-QM · Investor Financing
A DSCR loan sizes your financing on one question: does the property's rent cover its payment? No tax returns, no W-2s, no personal income calculation — just the deal's own math. Built for Texas real estate investors scaling a portfolio.
For investment and business purposes only. Not available for owner-occupied primary residences.
The basics
DSCR stands for debt-service coverage ratio: the property's monthly rental income divided by its full monthly payment (principal, interest, taxes, insurance, and any association dues — PITIA). A ratio of 1.0 means the rent exactly covers the payment; above 1.0, the property cash-flows.
That ratio is the qualification. Instead of underwriting your personal tax returns, pay stubs, and debt-to-income ratio, a DSCR lender underwrites the deal itself. For self-employed investors whose tax returns understate real income, or investors whose portfolios have outgrown conventional loan limits and DTI math, this is the unlock.
DSCR loans are business-purpose loans for investment properties — long-term rentals, and with some lenders, short-term rentals. They pair naturally with LLC ownership, don't cap how many you can reasonably hold the way conventional financing does, and keep your personal borrowing picture separate from your portfolio's growth.
Best suited for
✓ Investors buying or refinancing Texas rentals
✓ Self-employed borrowers with write-off-heavy returns
✓ Portfolios past the conventional loan count
✓ Closing in an LLC or entity name
✓ BRRRR and long-term buy-and-hold strategies
Requirements
Four levers decide DSCR pricing and approval. Exact thresholds vary by lender and program — we shop them for you.
The mechanics
DSCR is simple on the surface. Winning on terms means knowing where the details live — here's what actually moves your deal.
Monthly gross rent ÷ monthly PITIA. A $2,400 rent against a $2,000 payment is a 1.20 DSCR. Market rent is established by the appraisal's rent schedule, not just your lease.
Pricing tiers reward stronger coverage. The same property at 1.25× DSCR generally prices better than at 1.05× — sometimes the difference is raising rent or a slightly larger down payment.
Treatment varies by program. Some count Airbnb or VRBO income using documented history or specialized projections; others credit only long-term market rent. If short-term rental income is your story, tell us up front — program choice decides whether your numbers work.
Most DSCR loans carry a prepayment penalty in the early years, and the structure varies by program. Buydowns or removal are often available for a pricing trade-off. Know your exit timeline before you choose — we will lay out the options.
Closing in an LLC is standard in DSCR lending, typically with a personal guaranty. Keeps title, liability, and your portfolio's structure clean.
DSCR loans finance investment property only — never your primary residence. That's what places them outside conventional consumer-mortgage rules, and it's a line every legitimate lender holds.
This page is reviewed by Jonathan Sarver, a licensed Texas loan officer. Have a question about your specific situation in Austin or the Hill Country? Reach out directly — a real person, licensed in Texas, will answer.
Answers
Most programs look for a ratio of at least 1.0 — the rent fully covering the payment — with the best pricing at higher ratios. Some programs allow ratios below 1.0 with stronger credit, more equity, or reserves. Exact minimums vary by lender and program.
No tax returns, W-2s, or pay stubs are required, and your personal debt-to-income ratio isn't calculated. Lenders verify credit, assets for the down payment and reserves, and the property's rental income via the appraisal.
Yes — entity vesting is standard in DSCR lending, usually with a personal guaranty from the members. It's one of the main reasons portfolio investors choose DSCR over conventional financing.
It depends on the program. Some count documented short-term rental income or use specialized projections; others qualify the property on long-term market rent only. If your numbers depend on STR income, tell us up front so we match you to the right program.
No. DSCR loans are business-purpose loans strictly for investment property. Financing a primary residence this way isn't a workaround anyone should offer you — for a home you'll live in, we'd point you to the right consumer program instead.
Ready when you are
Send us the address and the rent — we'll tell you how it debt-services and what terms it earns. Investor-direct, from a licensed Texas loan officer.
Price my DSCR dealThis is not a commitment to lend. All loans subject to credit approval, income and asset verification, and property appraisal. Rates and terms vary and are not guaranteed.