DSCR Loans in Texas: What Investors Should Know
A DSCR loan qualifies a rental on its rent rather than your personal income, and each lender sets its own terms. Texas is one of the busiest states for investor lending: lenders closed 45,606 loans on one- to four-unit investment properties there in 2025, third behind California and Florida, according to HMDA data. About 74% were flagged by the lender as primarily for a business purpose.
Last updated October 21, 2026Texas investor lending in 2025
Texas's investor loans had a median near $205,000. About 61% were purchases and 34% refinances, including 19% that were cash-out refinances. Investor loans made up about 9% of all the loans reported under HMDA in the state. These counts cover all investor lending, not DSCR loans alone. See investment property loans by state for every state.
Where investors borrowed
The 14 Texas counties with the most investor loans in 2025. Harris led with nearly twice Dallas County's count (7,064 against 3,733). Medians ran from near $155,000 in Lubbock to near $325,000 in Travis, and 49% of Dallas County's investor loans were purchases, against 76% in Collin.
| County | Investor loans closed | Median loan, about | Business-purpose | Purchase |
|---|---|---|---|---|
| Harris County | 7,064 | $205,000 | 74% | 60% |
| Dallas County | 3,733 | $235,000 | 83% | 49% |
| Bexar County | 3,222 | $175,000 | 75% | 56% |
| Tarrant County | 3,148 | $225,000 | 77% | 57% |
| Collin County | 2,764 | $265,000 | 65% | 76% |
| Travis County | 1,882 | $325,000 | 67% | 63% |
| Denton County | 1,706 | $265,000 | 61% | 73% |
| Montgomery County | 1,460 | $205,000 | 71% | 77% |
| Fort Bend County | 1,430 | $225,000 | 74% | 73% |
| Williamson County | 1,105 | $255,000 | 56% | 71% |
| Lubbock County | 914 | $155,000 | 80% | 76% |
| Hidalgo County | 830 | $205,000 | 77% | 61% |
| El Paso County | 792 | $165,000 | 70% | 51% |
| Galveston County | 717 | $215,000 | 74% | 60% |
1,077 Texas investor loans had no county in the public file and aren't shown.
How a DSCR loan works
The lender divides the property's rent by its full payment of principal, interest, taxes, insurance and any association dues. The DSCR programs we read publish limits that mean 15% to 25% down and credit minimums from 620 to 700. See DSCR loan questions, answered and how much down payment for a DSCR loan.
Cash-out on a Texas rental
Texas's constitutional rules for home equity loans and HELOCs (Article XVI, Section 50) apply to a homestead, so they aren't what governs a cash-out refinance on a non-homestead investment property. Renting out a home or moving out doesn't by itself end its homestead status: Section 51 says temporary renting doesn't change a homestead's character when no other homestead has been acquired. The lender or title company decides which rules apply to your property. On a non-homestead rental, a cash-out refinance follows the standard agency or lender rules for investment properties; one DSCR lender publishes cash-out up to 80% loan-to-value. See cash-out refinance or HELOC on a rental and can you refinance a DSCR loan.
What to ask a lender
- What ratio, down payment and credit score do you require on a Texas rental?
- Will you use the appraisal's market rent or my lease?
- How long do I need to own the property before a cash-out refinance?
- Is there a prepayment penalty, and for how long?
How to read these numbers
They're loans that closed in 2025, from every lender reporting under HMDA, not today's offers and not FreeRateUpdate's activity. They count only loans the lender reported as closed-end and not a reverse mortgage; loans reported as exempt from either field are left out. Loan amounts in the public file are rounded to the midpoint of a $10,000 range, so medians are approximate. Business-purpose is the lender's own HMDA flag, not a DSCR label.
| Investor loans closed | 45,606 (third most of any state) |
|---|---|
| Median loan | About $205,000 |
| Business-purpose share | About 74% |
| Purchase vs. refinance | 61% purchase, 34% refinance |
| Most investor loans | Harris, Dallas, Bexar |
Related questions
Sources
- https://ffiec.cfpb.gov/data-browser/
- https://ffiec.cfpb.gov/documentation/publications/loan-level-datasets/lar-data-fields
- https://ffiec.cfpb.gov/documentation/publications/modified-lar/resources/data-dictionaries/mlar-dd-2018-onward
- https://www.tlc.texas.gov/docs/legref/TxConst.pdf
- https://www.kiavi.com/loans/dscr
- https://www.griffinfunding.com/non-qm-mortgages/dscr-loans/
- https://angeloakms.com/programs/investor-cash-flow-mortgage-program/
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.