Texas DSCR Loans
Build a Texas rental portfolio on the income each property produces, not on your personal tax filings. Texas deals live or die on property taxes, hail and wind insurance, and special-district charges, so we price all of them in from the first conversation. Up to 85% LTV, rates from 5.75%, and a 0.75x DSCR floor that keeps high-cost deals within reach.
- 0.75x DSCR floor with reserves, far below the 1.0x-1.25x typical elsewhere
- Up to 85% LTV on purchase · FICO from 620
- Single-family, townhomes, condos & 2-4 units all considered
- Short-term-rental income can qualify eligible properties alongside long-term leases
- Close in 14 days · no-seasoning cash-out · LLCs, foreign nationals & first-time investors welcome
- Tell us about the propertyAddress, monthly rent (lease or short-term), and price or value.
- See your real DSCRProperty taxes, insurance, HOA and special-district costs counted from the start.
- Close in as fast as 14 daysStreamlined processing with no personal income documents.
Texas DSCR Loans at a Glance
- How you qualify: Rent versus the full monthly payment. No W-2s, pay stubs or tax returns.
- DSCR floor: 0.75x with reserves, below the 1.0x-1.25x many programs expect.
- Leverage: Up to 85% LTV on purchase; as little as 15% down.
- Credit: FICO from 620.
- Rates: From 5.75% for the strongest profiles.
- Properties: Single-family, townhomes, condos, duplexes through fourplexes and mixed-use.
- Income: Long-term lease, appraiser’s market rent or documented short-term-rental earnings.
- Cash-out: No-seasoning options, so you can refinance without a waiting period.
- Borrowers: Individuals, LLCs and entities; foreign nationals and first-time investors welcome.
- Speed: Closings in as little as 14 days.
- Quote: Free, with no credit pull needed to see it.
- Lender: CambridgeHomeLoan.com, a direct lender since 1998 (NMLS #1826020).
DSCR financing
How DSCR loans work for Texas investors
DSCR, or debt service coverage ratio, tests whether a rental covers its own debt. The lender looks at the property instead of your paycheck. That makes the loan a good fit for self-employed investors, owners with large business write-offs, retirees, overseas buyers, and anyone growing a portfolio faster than conventional underwriting allows.
A 1.00x ratio means rent equals the payment. Above 1.00x the property has a cushion. Many lenders stop at 1.0x, and some ask for 1.15x or 1.25x. We can consider deals as low as 0.75x with reserves, which matters in Texas, where tax and insurance bills can pull a ratio down even when the rent is strong.
A worked example
A Texas single-family home rents for $2,300 a month. After a 5% vacancy allowance, effective rent is about $2,185. The full monthly payment (loan payment, taxes, insurance) is $2,150. DSCR = 2,185 ÷ 2,150 = 1.02x. The home qualifies on its own income.
Why taxes and insurance dominate
With no state income tax, Texas local governments depend on property taxes, and annual bills can take a big bite out of rent. Add hail, wind or flood coverage and the payment can climb fast, which is why we use the real figures.
Who uses DSCR loans
Self-employed buyers, owners with heavy deductions, retirees, foreign nationals, and portfolio builders who have reached conventional loan limits. These are business-purpose loans for non-owner-occupied properties only.
What you can skip
Pay stubs, W-2s, tax returns and employment verification. We focus on the property’s rent, your credit profile, your down payment or equity, and your reserves.
| DSCR floor | 0.75x, with reserves |
| Leverage | Up to 85% LTV on purchase |
| Credit | FICO from 620 |
| Rate | From 5.75% |
| Rental income | Long-term lease, appraiser’s market rent, or documented short-term-rental income |
| Property types | Single-family, townhomes, condos, 2-4 units, mixed-use |
| Seasoning | No-seasoning options for purchase and cash-out refinance |
| Borrower | Individual, LLC or entity · foreign nationals and first-time investors welcome |
What sets us apart
Underwriting built around Texas costs
Few states punish a rough estimate like Texas. A tax rate that looks fine on a listing, a roof that invites a bigger insurance premium, or a district charge nobody mentioned can turn a 1.10x deal into a 0.90x deal.
We start with the figures that actually apply: the property’s real tax amount, an insurance quote that reflects roof age and location, any HOA dues, and MUD or PID charges where they exist. On the coast and in flood-prone areas we also look at windstorm and flood coverage. If the property is a short-term rental, we confirm that local rules and the HOA allow it before counting that income. You get a DSCR you can trust, not one that changes at underwriting.
Eligible properties
Texas rental properties we finance
Texas investors buy everything from suburban starter homes to duplexes near campuses. We look at each one on its own numbers:
Single-Family Rentals
Detached homes rented long-term or short-term, qualified on the property’s rent.
Townhomes & Duplexes
Attached and paired homes in urban and suburban settings, popular with Texas rental investors.
Condos
Condo units reviewed together with the association’s dues, budget and documents.
2-4 Unit & Mixed-Use
Small multifamily and storefront-plus-apartment buildings, underwritten on combined rent.
Programs
Texas DSCR loan programs
One approach covers several ways to buy, refinance and scale your Texas rentals:
Purchase
Acquire a rental qualified on its in-place lease or an appraiser’s market rent.
No-Seasoning Cash-Out
Pull equity out soon after a purchase or rehab without waiting out a seasoning period.
Short-Term Rental
Use documented short-term-rental earnings on eligible properties, once local rules are confirmed.
2-4 Unit & Mixed-Use
Duplexes through fourplexes and mixed-use buildings underwritten on the total income of all units.
Eligibility & requirements
Texas DSCR loan eligibility and requirements
We look at three things: the borrower, the property and the deal. Here is what that usually means in practice. Final terms depend on the full file.
The borrower
- FICO of 620 or higher; stronger credit earns better pricing
- Individual, LLC, corporation or other entity
- Foreign nationals and first-time investors welcome
- ID, plus entity documents if closing in an LLC
The property
- Non-owner-occupied, business-purpose investment property
- Single-family, townhome, condo, 2-4 unit or mixed-use
- City registration or permit for rentals where local rules require it
- Short-term rentals with documented, permitted income
The deal
- DSCR of 0.75x or higher, with reserves
- Up to 85% LTV on purchase
- Purchase or no-seasoning cash-out refinance
- Insurance quote, tax bill and any MUD or PID charges
| Down payment / equity | As little as 15% on a purchase (up to 85% LTV) |
| Credit | 620+ FICO accepted |
| DSCR | 0.75x floor with reserves; no personal income or employment verification |
| Reserves | Required; the amount depends on DSCR, leverage and credit profile, and is shown on your term sheet |
| Rent documentation | Lease agreement or appraiser’s market rent schedule; platform history or projection for short-term rentals |
| Local compliance | City or HOA short-term-rental approval and any rental registration, where required |
| Property documents | Purchase contract, insurance quote, tax bill, MUD or PID details, and HOA or condo documents where applicable |
| Appraisal | Required, with a market rent schedule |
| Vesting | Individual, LLC or entity |
| Not eligible | Primary residences and personal-use second homes |
Requirements shown reflect our strongest profiles and may vary by property, borrower and market conditions.
Free tool
Texas DSCR calculator
Enter your numbers to estimate your loan amount, payment and DSCR. Property tax, insurance and association or district charges are separate fields so you can watch what moves your ratio. Illustrative only; your quote uses the real figures.
Your property
Illustrative only; not a commitment to lend. A DSCR of 1.00x or higher means rent covers the payment; 0.75x to 1.00x can still qualify with reserves. Excludes closing costs. Rate, tax and insurance values are examples.
How we compare
CambridgeHomeLoan vs. typical DSCR lenders in Texas
DSCR lenders vary widely. Some ask for a 1.0x minimum, estimate costs instead of using real figures, and run credit before they will quote. Here is how our program generally differs.
| Feature | CambridgeHomeLoan | Typical DSCR Lenders |
|---|---|---|
| Costs in your DSCR | Actual taxes, insurance, HOA, MUD and PID | Often estimated or averaged |
| DSCR floor | 0.75x, with reserves | Often 1.0x-1.25x minimum |
| Quote process | No credit pull to quote | Often a credit pull upfront |
| Qualifying income | Lease, market rent or documented STR income | Often long-term lease only |
| Seasoning | No-seasoning cash-out available | Often a 6-12 month wait |
| Duplexes to fourplexes | Considered on combined rent | Policies vary by lender |
| Time to close | As fast as 14 days | Often 21-45+ days |
Typical-lender column is a generic composite of commonly seen terms as of 2026, subject to change, and does not describe any specific lender.
How it works
Your Texas DSCR loan, from first call to funding
Six stages, one loan officer guiding you through each.
Submit your application
Fill out our short online form or call us. Tell us the property address, the purchase price or current value, the rent (lease or short-term history), and whether you are buying or refinancing. Your first quote needs no credit pull.
We review your application
A loan officer reviews your scenario quickly. We check the property type, a rough DSCR, leverage and borrower profile, and point out early anything that needs attention, such as an HOA rule, a district charge or an insurance concern.
We underwrite the deal
Underwriting confirms the numbers. We order the appraisal and rent schedule, collect the tax bill and insurance quote, confirm any MUD, PID or HOA charges, review entity and ID documents, and calculate your final DSCR from actual costs.
Deal sent to you for review
You receive the full terms: rate, loan amount, leverage, DSCR, reserves, fees and closing costs. Your loan officer goes through every line with you so you can approve with confidence or adjust the structure.
Sign the deal
When you approve, we issue final loan documents for you to review and sign. We coordinate with your agent, attorney and title company so entity paperwork and closing logistics stay on schedule.
Funding
Once final conditions clear, the loan funds, and you take ownership or receive cash-out proceeds. Many loans close in as little as 14 days, and we stay available for your next deal.
Local markets
Texas DSCR loans by city
Texas is big enough that a deal in Houston, Lubbock and Galveston can look nothing alike. Taxes, insurance, special districts and local rules change from market to market. Below is a guide to 20 Texas cities we lend in, followed by how our DSCR program applies to each.
Houston, Texas
Climate & population: Houston has a humid subtropical climate, with hot, humid summers, mild winters and heavy rain at times. Hurricane season runs June to November, and the city has seen major flooding events. About 2.3 million people live in the city, and the metro area has more than 7 million.
Schools & colleges: The University of Houston, Rice University, Texas Southern University and Houston Community College are based here. Public schools are run by Houston ISD, with many surrounding districts across the metro.
Major employers: The Texas Medical Center, Memorial Hermann, Houston Methodist, NASA’s Johnson Space Center, Port Houston and a deep energy sector, including Sysco and many oil and gas companies, anchor employment.
Shopping & attractions: The Galleria, Memorial City Mall and River Oaks District lead retail. Attractions include Space Center Houston, the Museum District, Hermann Park, Buffalo Bayou Park and the Houston Zoo.
Communities & investment areas: Investors look at the Heights, Montrose, Midtown, EaDo, Bellaire, Memorial and neighborhoods near the Medical Center and Energy Corridor, plus suburbs such as Katy and Pearland.
Real estate & rental market: Houston is one of the largest rental markets in the country, with abundant single-family inventory and no citywide zoning. Flood zone status and insurance cost are central to underwriting.
DSCR loans in Houston: We price Houston deals on real tax and insurance figures, check flood zone status, and include any MUD charges so your DSCR is accurate.
Dallas, Texas
Climate & population: Dallas has hot summers, mild winters, and occasional ice storms. Severe thunderstorms, hail and tornado risk are part of the climate. The city has roughly 1.3 million residents within the Dallas-Fort Worth metro of about 8 million.
Schools & colleges: Southern Methodist University, UT Dallas in nearby Richardson, UT Southwestern Medical Center and Dallas College serve the area. Public schools include Dallas ISD and several suburban districts.
Major employers: AT&T, Texas Instruments, Southwest Airlines, Baylor Scott & White Health, Texas Health Resources and a big financial and corporate headquarters presence drive employment.
Shopping & attractions: NorthPark Center, the Galleria Dallas and Highland Park Village are major retail spots. Attractions include the Arts District, Klyde Warren Park, the Sixth Floor Museum, Fair Park and the American Airlines Center.
Communities & investment areas: Popular areas include Uptown, Deep Ellum, Bishop Arts, Oak Cliff, Lakewood and East Dallas, with a mix of apartments, townhomes, duplexes and single-family homes.
Real estate & rental market: Corporate relocations and job growth have supported rental demand for years. Hail exposure makes roof age and insurance terms important in underwriting.
DSCR loans in Dallas: We qualify Dallas single-family, townhome and small multifamily rentals on rent, using real tax and insurance figures, including roof-age and hail considerations.
Austin, Texas
Climate & population: Austin has hot summers, mild winters, periodic drought and occasional flash flooding and hail. The city has roughly 980,000 residents, and the metro area is about 2.4 million.
Schools & colleges: The University of Texas at Austin, St. Edward’s University, Huston-Tillotson University and Austin Community College are based here, with Austin ISD running the public schools.
Major employers: State government, the University of Texas, Dell Technologies in nearby Round Rock, Tesla, Apple, Samsung and a deep technology sector are leading employers.
Shopping & attractions: The Domain, Barton Creek Square and South Congress are retail and dining hubs. Attractions include Lady Bird Lake, Zilker Park, Barton Springs, the Texas State Capitol and Sixth Street.
Communities & investment areas: Investors look at East Austin, South Congress, Mueller, Hyde Park, North Loop and Zilker, as well as the suburbs around them.
Real estate & rental market: Austin has seen strong growth and relatively high prices, and short-term-rental rules have been actively debated, so permit status matters. Property taxes are significant.
DSCR loans in Austin: When purchase prices run high compared with rent, our 0.75x DSCR floor with reserves can help. We confirm local short-term-rental rules before counting that income.
San Antonio, Texas
Climate & population: San Antonio has hot, humid summers, mild winters, occasional hail and flash flooding. The city has about 1.5 million residents, and the metro area roughly 2.7 million.
Schools & colleges: The University of Texas at San Antonio, Trinity University, St. Mary’s University, Texas A&M University-San Antonio and the Alamo Colleges District serve students. Public schools include San Antonio ISD and North East ISD.
Major employers: Joint Base San Antonio, USAA, H-E-B, Valero, Methodist Healthcare, University Health and the South Texas Medical Center are major employers.
Shopping & attractions: The Shops at La Cantera, North Star Mall and the Pearl district are shopping and dining hubs. Attractions include the Alamo, the River Walk, the San Antonio Missions, SeaWorld and Six Flags Fiesta Texas.
Communities & investment areas: Popular areas include Alamo Heights, Stone Oak, Southtown, King William, the Pearl and the Medical Center area.
Real estate & rental market: Military and healthcare employment support steady demand, and prices are generally lower than Austin. Property taxes and insurance remain important parts of the payment.
DSCR loans in San Antonio: We underwrite San Antonio rentals on rent with real tax and insurance figures, and military-driven demand can support strong long-term leases.
Fort Worth, Texas
Climate & population: Fort Worth has hot summers, mild winters, and exposure to severe storms, hail and occasional tornadoes. The city has roughly 980,000 residents in the Dallas-Fort Worth metro.
Schools & colleges: Texas Christian University, the UNT Health Science Center, Texas Wesleyan University and Tarrant County College are based here. Fort Worth ISD and several suburban districts serve students.
Major employers: American Airlines, Lockheed Martin, Bell Textron, BNSF Railway, Alcon, Cook Children’s, JPS Health Network and the Naval Air Station Joint Reserve Base are significant employers.
Shopping & attractions: Sundance Square, the Shops at Clearfork and Hulen Mall provide shopping. Attractions include the Stockyards, the Kimbell Art Museum, the Fort Worth Zoo and Dickies Arena.
Communities & investment areas: Investors consider the Near Southside, Cultural District, Alliance, Arlington Heights, Westover Hills and neighborhoods near Clearfork.
Real estate & rental market: Fort Worth has seen strong growth with generally lower prices than Dallas, and aviation and logistics employment supports rental demand.
DSCR loans in Fort Worth: We qualify Fort Worth single-family, townhome and duplex rentals on rent, with LLC closings and first-time investors welcome.
El Paso, Texas
Climate & population: El Paso has a desert climate, with hot, dry summers, mild winters, a short monsoon season and occasional dust and wind. The city has roughly 680,000 residents, and the metro area about 870,000.
Schools & colleges: The University of Texas at El Paso, El Paso Community College and Texas Tech University Health Sciences Center El Paso serve the area. Public schools include El Paso ISD and Ysleta ISD.
Major employers: Fort Bliss, University Medical Center of El Paso, The Hospitals of Providence, cross-border trade and logistics, and the school districts are leading employers.
Shopping & attractions: Cielo Vista Mall, The Fountains at Farah and Sunland Park Mall provide shopping. Attractions include Franklin Mountains State Park, the Mission Trail and Scenic Drive.
Communities & investment areas: Popular areas include Kern Place, Central El Paso, the Northeast, Eastside, Westside and Mission Valley.
Real estate & rental market: Military presence and border commerce support rental demand, and prices are among the lower in Texas, which can help rent-to-price ratios.
DSCR loans in El Paso: We structure El Paso purchases property by property, a fit for investors seeking cash flow from modestly priced rentals.
Arlington, Texas
Climate & population: Arlington has hot summers, mild winters and exposure to severe storms and hail. The city has roughly 400,000 residents, in the middle of the Dallas-Fort Worth metro.
Schools & colleges: The University of Texas at Arlington is based here, and Arlington ISD serves the area, along with neighboring districts.
Major employers: General Motors’ Arlington Assembly plant, Texas Health Arlington Memorial Hospital, the University of Texas at Arlington, Arlington ISD and the entertainment district support employment.
Shopping & attractions: Parks Mall at Arlington and Arlington Highlands provide shopping. Attractions include AT&T Stadium, Globe Life Field, Six Flags Over Texas and Texas Live!
Communities & investment areas: Popular areas include the Entertainment District, North Arlington near UTA, South Arlington and Viridian.
Real estate & rental market: Student and entertainment-district demand supports rentals, and proximity to both Dallas and Fort Worth keeps commuter demand steady.
DSCR loans in Arlington: We qualify Arlington student-oriented and long-term rentals on lease or appraised rent, with short-term rentals reviewed against local rules.
Plano, Texas
Climate & population: Plano has hot summers, mild winters, and the same severe-weather and hail exposure as the rest of North Texas. The city has roughly 290,000 residents in Collin County.
Schools & colleges: Collin College and nearby University of Texas at Dallas serve students, and Plano ISD is the main public district.
Major employers: Toyota Motor North America, Frito-Lay, Capital One, Liberty Mutual and many corporate offices make Plano a major employment center.
Shopping & attractions: Legacy West, the Shops at Legacy and Willow Bend Mall provide shopping and dining. Arbor Hills Nature Preserve and Haggard Park offer outdoor space.
Communities & investment areas: Popular areas include Legacy, West Plano, Downtown Plano and the Willow Bend area, mostly single-family homes, townhomes and apartments.
Real estate & rental market: Corporate presence supports a strong rental base, and property taxes are notable, so the tax figure affects DSCR.
DSCR loans in Plano: Plano’s higher property taxes make accurate figures vital, and our 0.75x floor with reserves gives tight deals more room.
Frisco, Texas
Climate & population: Frisco has hot summers, mild winters and typical North Texas storm and hail exposure. The city has roughly 220,000 residents in Collin and Denton counties.
Schools & colleges: Collin College and the University of North Texas at Frisco serve students, and Frisco ISD is the main public district.
Major employers: The PGA of America and the Dallas Cowboys headquarters at The Star, along with Keurig Dr Pepper, Frisco ISD and many corporate offices, support employment.
Shopping & attractions: Stonebriar Centre, The Star and Frisco Square are shopping and entertainment hubs. Attractions include Toyota Stadium, Riders Field and the National Videogame Museum.
Communities & investment areas: Popular areas include Frisco Square, Starwood, Phillips Creek Ranch and neighborhoods near The Star and the Dallas North Tollway.
Real estate & rental market: Frisco has seen rapid growth and newer construction, with higher prices and strong demand from corporate relocations. Many newer communities have HOAs and sometimes special-district charges.
DSCR loans in Frisco: We include HOA dues and any special-district charges in your Frisco DSCR so the figure matches the real payment.
McKinney, Texas
Climate & population: McKinney has hot summers, mild winters and typical North Texas storm exposure. The city has roughly 215,000 residents in Collin County.
Schools & colleges: Collin College has a campus here, and McKinney ISD is the main public district.
Major employers: Raytheon, Encore Wire, Baylor Scott & White Medical Center McKinney, McKinney ISD and the city’s growing corporate base support employment.
Shopping & attractions: Historic Downtown McKinney offers shops and restaurants around the square, with Stonebridge Ranch and nearby Allen Premium Outlets for shopping. Attractions include the Heard Natural Science Museum and Towne Lake.
Communities & investment areas: Popular areas include Historic Downtown, Stonebridge Ranch, Craig Ranch and Painted Tree, mostly single-family and townhome neighborhoods.
Real estate & rental market: McKinney combines historic charm with newer master-planned communities, and it has attracted steady growth. HOAs and tax rates are important cost items.
DSCR loans in McKinney: We qualify McKinney single-family and townhome rentals on rent, with HOA and tax figures built into your DSCR.
Irving, Texas
Climate & population: Irving has hot summers, mild winters and typical North Texas storm exposure. The city has roughly 255,000 residents and sits next to DFW Airport.
Schools & colleges: The University of Dallas is located here, with nearby Dallas College campuses. Irving ISD and Coppell ISD serve parts of the city.
Major employers: Fluor, Kimberly-Clark, Michaels, DFW Airport-related employment and the Las Colinas business district support a large corporate employment base.
Shopping & attractions: Irving Mall and Las Colinas Urban Center provide shopping and dining. Attractions include the Mandalay Canal Walk, the Irving Arts Center and the Toyota Music Factory.
Communities & investment areas: Popular areas include Las Colinas, Valley Ranch, Downtown Irving and the Heritage District.
Real estate & rental market: Proximity to DFW Airport and corporate offices supports demand from professionals and travelers, with a mix of apartments, townhomes and single-family homes.
DSCR loans in Irving: We qualify Irving condos, townhomes and single-family rentals on rent, including documented short-term income where local rules allow it.
Round Rock, Texas
Climate & population: Round Rock has hot summers, mild winters, and occasional hail and flash flooding. The city has roughly 130,000 residents, just north of Austin.
Schools & colleges: Austin Community College and the Texas State University Round Rock campus serve students, and Round Rock ISD is the main public district.
Major employers: Dell Technologies is headquartered here, along with Baylor Scott & White Medical Center Round Rock, Round Rock ISD and a growing technology and healthcare base.
Shopping & attractions: La Frontera and the Round Rock Premium Outlets provide shopping. Attractions include Dell Diamond, Old Settlers Park and historic Downtown Round Rock.
Communities & investment areas: Popular areas include Teravista, Forest Creek, Downtown Round Rock and neighborhoods near the Dell campus.
Real estate & rental market: Round Rock is a suburb of Austin with strong schools and tech-driven demand, and property taxes and special districts can matter in newer areas.
DSCR loans in Round Rock: We qualify Round Rock single-family and townhome rentals on rent, with MUD and HOA charges counted in your DSCR.
Corpus Christi, Texas
Climate & population: Corpus Christi has a coastal, hot and humid climate, with mild winters. Hurricane season runs June to November, and the city has coastal flood risk. It has roughly 320,000 residents.
Schools & colleges: Texas A&M University-Corpus Christi and Del Mar College serve the area, and Corpus Christi ISD is the main public district.
Major employers: Naval Air Station Corpus Christi, the Corpus Christi Army Depot, Christus Spohn Health, the Port of Corpus Christi and the energy and petrochemical sector are leading employers.
Shopping & attractions: La Palmera mall and shopping along the Southside serve residents. Attractions include the Texas State Aquarium, the USS Lexington Museum, North Beach and Padre Island National Seashore.
Communities & investment areas: Popular areas include the Southside, Padre Island, Flour Bluff, the Bayfront and Mustang Island.
Real estate & rental market: Port, military and energy employment support demand, and island properties attract vacation renters. Windstorm and flood insurance can be a significant cost.
DSCR loans in Corpus Christi: We check windstorm and flood coverage for Corpus Christi coastal properties and can use documented short-term-rental income on eligible island properties.
Galveston, Texas
Climate & population: Galveston is a barrier island with a humid subtropical climate, hot summers and mild winters. It is exposed to hurricanes and storm surge, and has roughly 53,000 residents.
Schools & colleges: Texas A&M University at Galveston, the University of Texas Medical Branch and Galveston College are based here, and Galveston ISD is the public district.
Major employers: UTMB Health is the largest employer, followed by the Port of Galveston and cruise terminal, Moody Gardens, tourism and hospitality.
Shopping & attractions: The Strand Historic District, Seawall Boulevard, Pleasure Pier, Moody Gardens and Schlitterbahn Galveston Island Waterpark are leading attractions.
Communities & investment areas: Popular areas include the East End Historic District, the Seawall, the West End and areas near the beaches and the Strand.
Real estate & rental market: Galveston has a large vacation-rental market, and wind and flood insurance, including coastal windstorm coverage, are major cost factors.
DSCR loans in Galveston: We use documented short-term-rental history for eligible Galveston properties, confirming local rules and coastal insurance before counting that income.
Lubbock, Texas
Climate & population: Lubbock has a semi-arid climate, with hot summers, cold winters, wind, dust and frequent hail. The city has roughly 265,000 residents.
Schools & colleges: Texas Tech University, Lubbock Christian University and South Plains College are based here, and Lubbock ISD is the main public district.
Major employers: Texas Tech University, Covenant Health, UMC Health System, Lubbock ISD and the agriculture industry, including cotton, are among the largest employers.
Shopping & attractions: South Plains Mall and the Marsha Sharp Freeway corridor provide shopping. Attractions include the Buddy Holly Center, the National Ranching Heritage Center and Jones AT&T Stadium.
Communities & investment areas: Popular areas include Tech Terrace, Overton, the Depot District and Southwest Lubbock.
Real estate & rental market: The student population drives rental demand, and prices are comparatively modest. Hail exposure makes roof condition and insurance terms important.
DSCR loans in Lubbock: We qualify Lubbock student rentals on lease or appraised rent, with roof and hail insurance figures included in your DSCR.
Katy, Texas
Climate & population: Katy has a humid subtropical climate, with hot, humid summers, mild winters, hurricane-season exposure and flood considerations. The city has roughly 25,000 residents, within a much larger Katy-area population.
Schools & colleges: Houston Community College’s Katy campus and the University of Houston System at Katy serve students. Katy ISD is the main public district and is well known across the region.
Major employers: Katy ISD, Memorial Hermann Katy, Houston Methodist West and the nearby Energy Corridor employers, including BP, drive employment.
Shopping & attractions: Katy Mills, LaCenterra at Cinco Ranch and Boardwalk at Towne Lake provide shopping. Attractions include Typhoon Texas Waterpark and Mary Jo Peckham Park.
Communities & investment areas: Popular areas include Cinco Ranch, Cross Creek Ranch, Grand Lakes and Seven Meadows, mostly master-planned single-family communities.
Real estate & rental market: Strong schools support demand and prices are higher. Many communities fall within MUDs, which add tax charges.
DSCR loans in Katy: We count MUD charges and HOA dues in your Katy DSCR, and check flood zone status where relevant.
Pearland, Texas
Climate & population: Pearland has a humid subtropical climate, with hot, humid summers, mild winters, and hurricane and flood exposure. The city has roughly 125,000 residents south of Houston.
Schools & colleges: Alvin Community College has a Pearland campus, and Pearland ISD and Alvin ISD serve the area.
Major employers: Employers include HCA Houston Healthcare Pearland, Pearland ISD, Alvin ISD and the Texas Medical Center and Gulf Coast employers within commuting distance.
Shopping & attractions: Pearland Town Center and the Shadow Creek Ranch area provide shopping and dining, and Independence Park offers outdoor space.
Communities & investment areas: Popular areas include Shadow Creek Ranch, Silverlake and the Old Townsite, with single-family and townhome neighborhoods.
Real estate & rental market: Pearland offers newer housing near the Medical Center and Port, and flood zone status and MUD charges influence costs.
DSCR loans in Pearland: We check flood zone status and count MUD charges for Pearland properties, so your DSCR reflects the full payment.
The Woodlands, Texas
Climate & population: The Woodlands is a planned community set among pine forest, with hot, humid summers, mild winters and storm and hurricane-season exposure. It has roughly 120,000 residents.
Schools & colleges: Lone Star College-University Park serves the area, and Conroe ISD and Magnolia ISD operate the public schools.
Major employers: Chevron Phillips Chemical, Huntsman, Memorial Hermann The Woodlands Medical Center, the Woodlands Township and many energy-sector offices are major employers.
Shopping & attractions: The Woodlands Mall, Market Street and Hughes Landing provide shopping. Attractions include the Cynthia Woods Mitchell Pavilion and the Waterway.
Communities & investment areas: The community is organized into villages such as Alden Bridge, Sterling Ridge, Cochran’s Crossing and Creekside Park, with townhomes, condos and single-family homes.
Real estate & rental market: The Woodlands has strong schools and a corporate base, with higher prices. Township assessments and HOAs add to the payment.
DSCR loans in The Woodlands: We count township assessments and HOA dues in your Woodlands DSCR so the number matches the real monthly cost.
Denton, Texas
Climate & population: Denton has hot summers, mild winters and typical North Texas storm and hail exposure. The city has roughly 150,000 residents.
Schools & colleges: The University of North Texas, Texas Woman’s University and North Central Texas College are based here, and Denton ISD is the main public district.
Major employers: UNT, Texas Woman’s University, Denton ISD, Peterbilt Motors, Medical City Denton and Denton County government are significant employers.
Shopping & attractions: The Denton Square, Rayzor Ranch Marketplace and Golden Triangle Mall provide shopping. Attractions include the Denton Arts and Jazz Festival and Quakertown Park.
Communities & investment areas: Popular areas include Downtown Denton, the University area and neighboring Corinth and Lake Dallas.
Real estate & rental market: The student population and DFW commuters support rental demand, with moderate prices compared with Dallas.
DSCR loans in Denton: We qualify Denton student-oriented and long-term rentals on lease or appraised rent, with first-time investors welcome.
Waco, Texas
Climate & population: Waco has hot summers, mild winters and typical Central Texas storm exposure, including severe weather. The city has roughly 145,000 residents.
Schools & colleges: Baylor University, McLennan Community College and Texas State Technical College are based here, and Waco ISD is the main public district.
Major employers: Baylor University, Ascension Providence, Hillcrest Baptist Medical Center, Waco ISD and Magnolia are among the largest employers.
Shopping & attractions: Magnolia Market at the Silos is a major attraction, along with the Dr Pepper Museum, the Waco Suspension Bridge, Cameron Park Zoo and McLane Stadium. Richland Mall provides shopping.
Communities & investment areas: Popular areas include Downtown Waco, Castle Heights, Sanger Heights and neighboring Woodway.
Real estate & rental market: Tourism and the university support both long-term and short-term rental demand, and local short-term-rental rules matter.
DSCR loans in Waco: We qualify Waco rentals on lease, market rent or documented short-term income, after confirming local rules.
We lend throughout Texas. If your city is not listed here, call us or submit the application and we will check.
City information is general and approximate, provided for illustration, and may change. It is not property-specific advice or a commitment to lend.
Answers
Texas DSCR loan FAQ
What is a DSCR loan?
A DSCR loan is an investor mortgage that is approved on the property’s cash flow. The lender compares monthly rent with the full monthly cost of the loan, including principal, interest, taxes, insurance and any association dues, instead of reviewing your pay stubs, W-2s or tax returns.
How do Texas property taxes affect my DSCR?
Texas has no state income tax, so counties, school districts and cities rely heavily on property taxes, and annual bills can be a large share of the monthly payment. We use the actual tax figure for the property, which is why a quick estimate and a real quote can differ.
What are MUD and PID assessments, and do they matter?
Municipal Utility Districts and Public Improvement Districts can add taxes or assessments to a property’s yearly costs, mostly in newer developments. Where they apply, we include them in your payment so the DSCR is accurate.
What DSCR do I need to qualify?
Our floor is 0.75x with reserves. A ratio of 1.00x means rent exactly covers the payment, and many DSCR lenders want 1.0x to 1.25x. A lower floor helps when taxes and insurance are high, when a property is still leasing up, or when you are buying for long-term appreciation.
What are the requirements for a Texas DSCR loan?
Typically a 620+ FICO, a down payment as low as 15% on a purchase, a non-owner-occupied investment property, a lease or appraiser’s market rent, an appraisal, proof of insurance and reserves. No tax returns or pay stubs are required.
Why does insurance matter so much in Texas?
Premiums can vary a lot with location, roof age, hail and wind exposure, and, on the coast, windstorm and flood coverage. We use a quote for the actual property rather than a generic average, so your DSCR holds up in underwriting.
Can short-term-rental income qualify the loan?
Yes. Documented Airbnb or Vrbo history, or a market-based projection for a property new to renting, can be used with or instead of a long-term lease. We confirm that local rules and any HOA allow short-term rentals before counting that income.
Are single-family homes, townhomes, duplexes and small multifamily eligible?
Yes. Single-family, townhomes, condos, 2-4 unit properties and mixed-use buildings are considered. Multi-unit properties are evaluated on the combined rent of all units.
How quickly can a Texas DSCR loan close, and can I close in an LLC?
Closings can happen in as little as 14 days, depending on the appraisal, insurance, title work and any association documents. You can close in an LLC or other entity, and foreign nationals and first-time investors are welcome.
Will getting a quote affect my credit?
No. We do not pull your credit just to show you numbers. You can see your estimated rate, leverage and DSCR before any credit inquiry.
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© 2026 CambridgeHomeLoan.com · NMLS #1826020 · 4830 W Kennedy Blvd, Tampa, FL 33609 · (800) 826-5077 · Equal Housing Lender. DSCR loans are business-purpose loans for non-owner-occupied investment properties and are not available for primary residences. Rates, points, LTV, DSCR requirements, terms and closing timelines are illustrative, subject to change without notice, and subject to borrower, property and deal qualification and underwriting approval. “Rates from 5.75%,” “up to 85% LTV,” “DSCR floor of 0.75x” and other figures reflect the strongest profiles and are not a quote or commitment to lend. Insurance, tax, HOA and special-district figures are based on documents for the specific property at the time of underwriting and may change. Local rental registration and short-term-rental requirements vary by city and association and are the borrower’s responsibility to satisfy. Short-term-rental income qualification is evaluated case by case. Calculator results and examples are illustrative and exclude closing costs. Comparison figures are generic market composites and are not the terms of any specific lender. City descriptions are general observations for illustration only. This page is informational and does not constitute financial, legal, tax or insurance advice.
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