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DSCR loan requirements
What it takes to qualify for a DSCR loan in Texas, and what you do not need: no tax returns, W-2s or pay stubs.
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Qualify on the rent, not your income. Send the deal and a loan officer follows up with your rate and terms.
Estimate only. Loan amount is up to 85% of the purchase price on purchases, or up to 80% of the appraised value on cash-out refinances. Minimum loan $150,000. Rate and final terms depend on the property, the rent and your credit. Business-purpose loans on investment property in Texas.
What we look at
- The property: an investment property in Texas
- The rent: the current lease, or market rent from the appraisal
- The payment: principal, interest, taxes, insurance and HOA dues
- Down payment or equity: at least 15% down on a purchase (up to 85% LTV), or 20% equity remaining on a cash-out refinance (up to 80% LTV)
- Loan size: $150,000 or more
- Credit: tell us your estimate; it affects your rate and terms
What we do not need
- Tax returns
- W-2s or pay stubs
- A debt-to-income ratio
- Seasoning before a cash-out refinance
Documents to have ready
- The purchase contract, or your current mortgage statement for a refinance
- Any current lease
- Insurance details for the property
- Your LLC documents if you are borrowing in an entity
- Bank statements showing your down payment and reserves
Ready? See your loan amount and send the deal.
Questions investors ask
What down payment do I need?
As little as 15% on a purchase, because we lend up to 85% LTV.
Can I borrow in an LLC?
Yes. DSCR loans are business-purpose loans and are commonly made to LLCs.
Do I need to own the property for a while before refinancing?
No. We do not require seasoning on cash-out refinances.