You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Find a DSCR Loan lender
Debt Service Coverage Ratio Loans
Invest in your future
JD MORTGAGE® connects you with lenders who want to help you invest in your future. We find the lenders that offer terms specially tailored to your goals—for commercial real estate, multifamily properties, and cash-flowing assets.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your DSCR financing needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.”
—Mary Kate RaffettoBeck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.”
—Clint CowanLynn Pinker Hurst & Schwegmann
The 6 Most Popular DSCR Loan Lenders in Texas
Key Terms
Texas’s vibrant real estate market, driven by its major cities, offers diverse investment opportunities, enhanced by its growing population and robust tourism sector.
DSCR loans, favored for their rapid approval and rental income-based qualification, appeal to a wide range of investors, including foreign nationals and LLCs.
Flexible repayment options and the ability to finance multiple properties make DSCR loans a strategic choice for long-term real estate investment in Texas.
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Easy Street Capital’s EasyRent loan program provides DSCR loans for cash-flowing investment properties. Flexible underwriting and ultra-competitive terms.
Loan Products
DSCR Loans: With rates starting at just 5.99% interest rates, 20% minimum down payment, no DSCR minimum, vacant properties OK.
Short Term Rental Loans: Leading loans for short term rentals (Airbnb); qualify with AirDNA projections and no operating history required. Rural, Vacation, and Seasonal Markets OK.
BRRRR Loans: Cash-out refinance DSCR Loans up to 75% with low seasoning requirements, 100% of capital invested returned in as little as 3 months
Multifamily Loans: 5-10 Unit properties financed on 30-year fixed rate loans with interest-only and easy qualification options.
Mixed Use Loans: DSCR Loans for Mixed Use properties up to 8 units (including up to 3 commercial units)
Lender Facts
Minimum Loan
$100,000
What We Do
DSCR Loans Rates starting at 5.99%
30-Year Fixed Rate; 10-Year Interest-Only Available
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Expand your rental portfolio with New Silver’s lightning-fast DSCR loans, closing in days, not weeks. Get approved online in under 5 minutes, including an instant online term sheet.
Ready to grow your portfolio with confidence? Apply now and see how fast and easy real estate investing can be with New Silver Lending at your side.
Loan Products
DSCR Loans: A 30-year fixed loan tailored for rental properties—ideal for growing your rental portfolio. Up to 80% LTV. No minimum DSCR required.
Fix & Flip Loans: Hard money loans designed for purchasing, renovating, and reselling investment properties—perfect for executing quick fix-and-flip projects.
Ground Up Loans: Up to 100% construction financing for residential builders—ideal for developers ready to break ground.
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Ridge Street’s DSCR loans allow real estate investors to purchase and refinance rental properties in 35 states, with industry-leading pricing and fast closing times for both long- and short-term rentals.
Loan Products
DSCR Loans For Long Term Rentals: Rates from 6.0% on cash flowing rental properties. Up to 80% LTV with a DSCR of 1.0 required.
DSCR Loans For Short Term Rentals: Rates from 6.75% on Airbnb and VRBO properties. Monthly rent used in DSCR calculation is based on AirDNA projected cashflow instead of 12 month track record.
DSCR Loans For Cash Out and Refinance: Ideal for BRRRR investors, we offer refinancing and cash-out options up to 80% LTV.
DSCR Loans For Multifamily Properties: 30-year loans for multifamily properties up to 25 units, with up to 80% LTV and a maximum loan amount of $2M.
Lender Facts
Minimum Loan
$50,000
What We Do
DSCR Loan Rates starting at 6.0%
Minimum DSCR of 1.0 required
Up to 80% LTV on purchases and refinances
Up to 75% LTV on cash-outs
Short-term rentals allowed
660+ credit score required
0% origination fee available
Not Available
No 100% financing
No properties > 25 units
No owner-occupied properties
No credit score below 660
Home to 29.5 million people, Texas is the second most populous state in the US, boasting vibrant cities like Houston, San Antonio, and Dallas. Known for its robust agriculture, energy, and tourism sectors, Texas drew 72.5 million visitors in 2019, generating $37.5 billion in spending, as reported by the Texas Travel Alliance.
The real estate market in those big cities is quite robust too. The median sold house price for July 2022 in Houston was $351,000, in San Antonio was $335,000 and in the Dallas-Fort Worth area was $415,000. Most surprising an increase came from the Austin-Round Rock location with a median of $515,000, despite being half as populous as Houston. About 63.4% of Texans own their homes compared to 36.6% who lease according to Housing Vacancies and Homeownership from the US Census. Of those rentals 7.4% are unoccupied at any given time.
The housing market continues to show a strong recovery post-pandemic and Texas may be an appealing place for a prospective homebuyer. Trendy tourist destinations like San Antonio and Austin also make for dependable locations for short-term rental set-ups.
So what are Debt Service Coverage Loans and how do they work? The paired-down version is this; DSCR loans are a type of hard money loan that allows borrowers to repay the loan using rental income. By taking the net income of the property, that is the profits from rent, and dividing it by the operating expenses and loan repayment the lenders will arrive at a DSCR ratio. A ratio of 1.0 or greater means the property pays for all its expenses using the rent income and can sometimes be the minimum DSCR ratio needs to get through underwriting.
Private lenders like these investor loans because it takes tax returns and bank statements out of consideration for the loan. This not only means the loans are approved faster but that they are also available to more borrowers. For example, small business owners would normally have to prove two years of business for a typical mortgage. With a DSCR loan, the business isn’t even a consideration for purchasing property. Foreign aliens and foreign nationals can also take advantage of DSCR loans this way, as can LLCs, which are barred from typical mortgages.
If you’re in the market for a real estate investment project in Texas, consider these DSCR lenders that are available for projects in the state.
1. New Silver
New Silver started in 2019 by Kirill Bensenoff and Alex Shvayetsky. They offer a variety of private money lending products like fix and flip, rental, ground up and personal loans.
We contacted New Silver Lending to learn more about their private lending business and here are some of the highlights:
Griffin Funding is a national mortgage lender company that specializes in the types of loans that are hard to find, such as VA Home home loans, bank statement loans for the self-employed or DSCR loans for real estate investors. They are licensed to work in 21 states and are rapidly expanding.
We contacted Griffin Funding to learn more about their DSCR loans in general and here is what we found:
No income or job history verification required
No limits on the number of properties
Loan amount up to $5 million
Minimum 20% down required
Interest-only option available
Both long-term and short-term rentals are eligible
No reserve required on cashout loans. Six months required on all other loans unless DSCR ratio is less than 1.
Angel Oak is a full-service private money lender that focuses on mortgage products, traditional and non-traditional (non-QM) products. They have platforms to provide both retail lending and direct lending.
We contacted Angel Oak directly to learn more about their DSCR loan program and here are some things to consider:
JMAC Lending was founded by Christina Pham in 2007. Since that time, JMAC Lending has originated more than 40,000 mortgage loans through its wholesale lending platform, making it one of the largest wholesale lenders in the industry, according to its website. They also include a DSCR loan in their lending portfolio.
We reached out to JMAC Lending to see what we could find out about their DSCR loan program. Here are the program highlights:
Loan amounts up to $3.5 million for DSCR ratios >= 1.0
Loan amounts up to $3 million for DSCR ratios < 1.0
No DSCR ratio restrictions
No income and no job required
Foreign Nationals OK
Gift funds allowed after 10% from borrowers own funds
Only 30-days of assets docs. for closing funds and reserves
First-time investors: Up to 75% LTV
Only one appraisal required up to $2M
30-year fixed, SOFR ARMs 5/6 & 7/6 with Interest-Only options
Founded by Jeff Miller and Jason Nichols, Truss Financial Group focuses on serving business owners and has been in business for over 20 years. They specialize in stated income mortgages and have served thousands of business owners, according to their website.
We asked Truss Financial Group for details on their DSCR loans and here is what they said:
Loans are based on the debt service coverage ratio
No ratio loans with 25% equity and strong FICO scores
CoreVest started in 2014 and offers a full-range of products for residential real estate investors. According to its website, they have closed more than $20 billion in loans and lends in all 50 states.
We contacted CoreVest to get more details about its DSCR loan and here is what we could find:
5+ rental properties eligible
Single-family, condo, townhome, multifamily properties are OK
What are the main advantages of a Texas DSCR loan?
It is crucial for any investor looking to get into the real-estate investment properties to consider what is best for their portfolio. For example, getting a DSCR loan may not be the best choice if you need to access your money quickly since it is tied-up in a property. Those looking to buy themselves a primary residence home also shouldn’t use a DSCR loan since DSCR mortgage programs are mainly used for investment properties and not residential properties. If your portfolio can support a long-term investment, you have good credit score to qualify for a good interest rate, have enough principal for a down payment, and have identified a subject property that has positive cash flow, then a DSCR loan may be the right loan for you.
One big reason to buy a rental property in Texas is the 29.5 million residents. While most of the state is empty, that huge population is all concentrated in the major four cities . By purchasing a rental in one, or several, of those cities a renter can use a sizable and stable population to fund their investment through monthly payments. For those more interested in short-term rentals consider utilizing the $37 billion tourism industry. A DSCR loan works for both short and long-term rental types.
Because a DSCR loan can qualify for multiple properties, investors can also consider several avenues for diversifying their investment. For example; investing in several properties in one Texas city or splitting the investment in each of the three major cities.
Since the process for qualifying for a DSCR loan doesn’t use W2’s or proof of income they are typically approved in weeks. This is great news for an investor looking to move into the Texas market quickly. Our best lenders offer multiple ways of repaying your loan, the most popular being adjustable-rate, fixed-rate, or interest only mortgages. With them you have the freedom to settle your debt however suits you best.
If you’re looking to explore hard money in other states, check out our national overview of DSCR loans as a starting point in your search.
Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.
Save more money than your friends
One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.
Biglaw Investor is helping thousands of high-income professionals manage and eliminate student loans and make great investment decisions. We’re on a mission to help every high-income professional achieve financial independence.
Biglaw Investor® is located at 1401 Lavaca St Suite 325, Austin, TX 78701. For inquiries, email us at hello@biglawinvestor.com. By accessing this website, you agree to our Terms of Use.
Trademarks
Biglaw Investor® and its logo, as well as JD Mortgage®, are registered trademarks of Four Minute Warning LLC. Other product names, logos, brands, and other trademarks featured or referred to within Biglaw Investor® are the property of their respective trademark holders and used for identification purposes only.
Information obtained via Biglaw Investor® is for educational purposes only and does not constitute financial, legal or professional advice. Always consult a licensed financial professional before making any financial decisions. This site may receive compensation from third-party advertisers. Biglaw Investor® is not endorsed or affiliated with the U.S. Department of Education or any government agency. All opinions expressed are for general informational purposes and should not be considered a substitute for advice specific to your circumstances.