DSCR loan snapshot for Texas
| Item | Estimate |
|---|---|
| Minimum down payment | 20%–25% |
| Minimum credit score | 660–700 |
| Typical TX home value | $260,400 |
| 3.5% down on typical home | $9,114 |
| 20% down on typical home | $52,080 |
| Avg. effective property tax | 1.58%/yr (~$343/mo) |
| Income for typical home (31% rule) | $87,000 |
Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.
Which Texas programs pair with DSCR loans?
- My First Texas Home: A first mortgage with down payment assistance for first-time buyers and veterans.
- My Choice Texas Home: Assistance for buyers who are not first-time buyers but meet income limits.
- Homes for Texas Heroes (TSAHC): Assistance for teachers, first responders, nurses, corrections officers and veterans.
Details and current limits: Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC.
How is DSCR calculated?
Lenders divide the property's market rent (from an appraiser's rent schedule or an existing lease) by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Example: $2,400 rent ÷ $2,000 payment = 1.20 DSCR.
Typical DSCR loan requirements
- Down payment: 20%–25% (sometimes 15% for strong files).
- Credit: 660–700 minimum.
- Reserves: commonly 3–12 months of payments.
- Property types: 1–4 unit homes, condos and townhomes; some lenders allow short-term rentals.
DSCR loans in Texas cities
HoustonSan AntonioDallasAustinFort WorthEl PasoArlingtonCorpus ChristiPlanoLubbockLaredoIrvingGarlandFriscoMcKinneyAmarilloGrand PrairieBrownsvilleKilleenPasadenaMesquiteDentonMcAllenWacoMidlandCarrolltonLewisvilleAbilenePearlandRound RockCollege StationRichardsonThe WoodlandsLeague CityOdessaBeaumontSugar LandTylerAllenEdinburgWichita FallsSan AngeloNew BraunfelsConroeAtascocitaTempleMissionBryanBaytownLongviewPharrGeorgetownFlower MoundCedar ParkMansfieldMissouri CityHarlingenNorth Richland HillsSan MarcosLeanderSpringVictoriaPflugervilleRowlettEulessWylieDeSotoPort ArthurTexas CityGalvestonKyleLittle ElmBurlesonGrapevineRockwallBedfordCedar HillHuntsvilleHaltom CityKellerShermanThe ColonyWaxahachieChannelviewSchertzCoppellWeslacoFriendswoodLancasterHurstDuncanvilleRosenbergMission BendMidlothianCopperas CoveFarmers BranchSocorroLa PorteTexarkanaSan JuanTimberwood ParkDel RioProsperLufkinWeatherfordCiboloDeer ParkHarker HeightsCleburneCanyon LakeHuttoNacogdochesWest OdessaSeguinSouthlakeGreenvilleSachseConverseForneyEagle PassLake JacksonAlvinBalch SpringsCelinaFulshearColleyvilleFort HoodDenisonCorsicanaUniversity ParkKingsvilleSiennaPecan GroveBig SpringParisSan BenitoCloverleafKerrvilleSaginawBenbrookFresnoKatyBeltonMarshallWataugaHorizon CityCorinthDickinsonEnnisStephenvilleMurphyAnnaPrincetonBrushy CreekFatePortlandAlamoPlainviewUniversal CityAngletonBoerneAltonOrangeCinco RanchLakewayTerrellCrowleySeagovillePalestineLa MarqueBrownwoodSteiner RanchNederlandWhite SettlementBrenhamBay CityAliceGainesvilleMelissaRoyse CityStaffordGlenn HeightsAddisonBellaireGrovesManorDonnaTaylorPampaHumbleMercedesHewittSulphur SpringsMount PleasantGatesvilleSouth HoustonHighland VillageRed OakRendonLive OakPalmviewBudaAldineCanyonUvaldeRio Grande CityMineral WellsWest University PlaceHerefordLockhartDumasHidalgoJacksonvilleWells BranchForest HillLumbertonAzlePort NechesSeabrookBeevilleTrophy ClubKilgoreAndrewsHendersonTomballAthensManvelSanta FeRobinsonLantanaLevellandBorgerWebsterEl CampoRichmondHornsby BendFort BlissGranburyRomaFour CornersTown of PecosLeon ValleyPort LavacaLa HomaSnyderSelmaFredericksburgIowa ColonyHeartlandBurkburnettElginPleasantonScenic OaksCluteFreeportFair Oaks RanchBonhamFairviewBellmeadGalena ParkBastropSweetwaterRockportRaymondvilleRobstownHeathSan Elizario
Frequently asked questions
Yes. DSCR loans are available statewide in Texas through approved lenders, subject to county loan limits where they apply.
Often yes. Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.
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Get My MatchesFigures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.