Disclaimer: Rate data is updated weekly. Last updated: April 14, 2026. Rates change daily — always contact lenders directly for a current quote on your specific deal. DSCRFinder.com does not guarantee rate accuracy from third-party lenders.
DSCR Loan Rates in Texas — April 2026
Texas is one of the most active DSCR loan markets in the country. High rental demand in Dallas-Fort Worth, Houston, Austin, and San Antonio drives strong investor activity — but Texas's high property taxes directly impact your DSCR ratio and the rates you qualify for.
As of April 14, 2026, the national 30-year fixed rate for primary residences is 6.40% (Bankrate). DSCR loans in Texas typically run 7.15% to 8.75% depending on borrower profile, city, and property type.
April 2026 Texas DSCR Rate Table by Borrower Profile
| Borrower Profile | DSCR | FICO | Down Payment | Rate Range | |---|---|---|---|---| | Best-qualified | 1.25+ | 740+ | 30%+ | 7.15% – 7.50% | | Strong | 1.25+ | 720–739 | 25% | 7.50% – 7.75% | | Standard | 1.0–1.24 | 680–719 | 20–25% | 7.75% – 8.25% | | Moderate | 0.75–0.99 | 660–679 | 20% | 8.25% – 8.50% | | Challenging | Below 0.75 | Below 660 | 20% | 8.50% – 8.75%+ |
Rates for 30-year fixed DSCR loans on single-family investment properties in Texas. Source: Bankrate national averages + non-QM spread, April 14, 2026.
Why Texas Property Taxes Matter for Your DSCR
Texas has no state income tax, which attracts investors — but it has some of the highest property taxes in the US, averaging 1.60% to 2.50% of assessed value annually depending on county.
This directly impacts your DSCR calculation. DSCR lenders calculate the ratio as:
DSCR = Gross Rental Income ÷ PITIA
Where PITIA = Principal + Interest + Taxes + Insurance + Association fees.
Texas Property Tax Rates by Market (2026 estimates)
| City / County | Avg Property Tax Rate | Impact on DSCR | |---|---|---| | Dallas County | ~2.0% | High — reduces DSCR by 0.10–0.20 | | Harris County (Houston) | ~2.1% | High — reduces DSCR by 0.10–0.20 | | Travis County (Austin) | ~1.9% | High — reduces DSCR by 0.10–0.15 | | Bexar County (San Antonio) | ~2.2% | Very high — reduces DSCR by 0.15–0.25 | | Tarrant County (Fort Worth) | ~2.3% | Very high — reduces DSCR by 0.15–0.25 |
Practical example: A $350,000 rental property in Dallas generating $2,400/month in rent:
- Annual taxes at 2.0% = $7,000 → $583/month
- This alone can drop your DSCR from 1.20 to 1.05, pushing you into a higher rate tier
Use our DSCR calculator to factor in Texas property taxes before you make an offer.
Texas DSCR Loan Market by City
Dallas-Fort Worth
DFW is the most active DSCR loan market in Texas. Strong population growth, diversified economy, and high renter demand make it a top target for buy-and-hold investors. Typical DSCR ratios for SFR investment properties in DFW suburbs (Frisco, McKinney, Arlington) range from 0.95 to 1.25.
Houston
Houston offers some of the best rent-to-value ratios in Texas, particularly in suburban corridors like Katy, Sugar Land, and The Woodlands. DSCR ratios tend to be stronger here than in Austin due to lower purchase prices relative to rents.
Austin
Austin's rapid appreciation has compressed rent-to-value ratios significantly. Many Austin investors are seeing DSCR ratios below 1.0, requiring lenders that accept sub-1.0 DSCR (minimum 0.75). Expect rates 0.25%–0.50% higher for sub-1.0 DSCR loans.
San Antonio
San Antonio offers strong cash flow fundamentals — lower purchase prices, stable military-driven rental demand (Fort Sam Houston, Lackland AFB, Randolph AFB), and consistent rent growth. DSCR ratios of 1.10–1.30 are achievable for well-selected properties.
Texas DSCR Loan Requirements (April 2026)
| Requirement | Typical Range | |---|---| | Minimum DSCR | 0.75 (some lenders) to 1.0 | | Minimum FICO | 620–680 depending on lender | | Down payment | 20%–25% | | Max LTV | 75%–80% | | Loan amounts | $150K–$3M+ | | Property types | SFR, 2–4 unit, condo, STR | | LLC allowed | Yes, most DSCR lenders |
Texas Landlord-Tenant Law: Investor-Friendly State
Texas is one of the most landlord-friendly states in the US, which is a plus for DSCR investors:
- No rent control statewide or at city level
- Eviction process is relatively fast (21–30 days from notice to possession)
- Security deposit limited to no more than 1 month's rent for most residential leases
- No habitability retaliation law that restricts landlord rent increases
- Property rights strongly protected under Texas law
This landlord-friendly environment reduces vacancy risk, which DSCR lenders consider when evaluating deals.
How to Get the Best DSCR Rate in Texas
- Account for property taxes upfront — use a property tax estimate tool or check the county appraisal district before making an offer
- Target properties with strong rent-to-value ratios — Houston suburbs and San Antonio outperform Austin for DSCR qualification
- Shop multiple lenders — use our lender comparison to find lenders active in Texas
- Consider a prepayment penalty — for buy-and-hold investors, accepting a 3–5 year step-down can reduce your rate by 0.50%–1.0%
- Verify lender licensing in Texas — not all DSCR lenders are licensed in all 50 states
Frequently Asked Questions — Texas DSCR Loans
What DSCR ratio do I need in Texas? Most lenders require a minimum of 1.0 DSCR. Several lenders (New Silver, Griffin Funding) accept down to 0.75 at higher rates. Texas property taxes often push borderline deals below 1.0.
Can I get a DSCR loan for an Austin property? Yes, but Austin's compressed cap rates make it challenging. With many properties at sub-1.0 DSCR, you'll need a lender that accepts below-1.0 ratios and should expect a rate premium.
Are DSCR loans available for short-term rentals (Airbnb) in Texas? Yes. Most lenders use market rent (not Airbnb income) for DSCR qualification, though some accept STR income with documentation. Rate premiums of 0.25%–0.50% apply for STR properties.
Do DSCR loans in Texas allow LLCs? Yes. Most DSCR lenders allow — and some prefer — LLC ownership for investment properties. This is common among Texas portfolio investors.
Related: Current DSCR Loan Rates April 2026 | Best DSCR Lenders 2026 | DSCR Calculator | Compare Lenders
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