Investment Property Loans in Texas
Investment property financing covers a wide range of loan types — from a single-family rental home to a 200-unit apartment complex to a net-leased retail center. What they have in common: the property generates income, the borrower doesn’t live there, and the loan is underwritten primarily on the property’s performance rather than the borrower’s personal income.
Texas is one of the best states in the country for real estate investing — no income tax, strong population growth, landlord-friendly laws, and diverse markets from rural to urban. Here’s how to finance your Texas investment property.
Investment Property Loan Options by Property Type
Single-Family Rentals (1–4 Units)
Fannie Mae and Freddie Mac offer investment property programs for 1–4 unit properties — 15–25% down, competitive rates, 30-year terms available. DSCR loans (qualify on rent vs. payment rather than personal income) are increasingly popular for investors with multiple properties or self-employment income. Hard money loans for acquisition or rehab before refinancing into long-term debt.
Small Multifamily (5–20 Units)
Crosses into commercial loan territory at 5 units. Bank portfolio loans, small-balance CMBS, and stated income commercial loans are the primary options. Underwritten on property NOI and DSCR. Down payment typically 20–25%.
Large Multifamily (20+ Units)
Agency debt (Fannie Mae, Freddie Mac multifamily), life company loans, CMBS, and bank portfolio loans. Best rates and leverage for stabilized properties. Value-add deals use bridge loans first, then refinance into agency after stabilization. See our multifamily loan guide.
Commercial Investment Properties
Retail, office, industrial, self-storage, hotel — all financed as commercial real estate. Loan programs depend on property type, occupancy, and deal size. See our property-specific guides for details.
DSCR Loans: The Investor’s Best Friend
DSCR (Debt Service Coverage Ratio) loans have become the dominant product for individual real estate investors. Instead of using your personal income to qualify, the lender uses the property’s rent:
- DSCR > 1.0: Property income covers loan payments — you qualify
- DSCR < 1.0: Some lenders will still lend; rate and down payment adjust
- No tax returns, no W-2s, no employment verification
- Works for investors with 10, 20, or 50 properties — no income documentation limits
- Available for SFR, 2–4 unit, and some small commercial properties
Building a Portfolio: Financing at Scale
Once you own 10+ financed properties, Fannie/Freddie conventional loans become unavailable. At that point, your options are:
- Portfolio lenders: Banks that hold loans on their books rather than selling to agencies — more flexible on loan count
- DSCR lenders: No conventional loan count limits — qualify each property on its own merit
- Blanket loans: One loan secured by multiple properties — simplifies management and often improves terms
- Hard money: Acquisition and rehab of each new addition, then stabilize and refinance
LLC vs. Personal Name for Investment Properties
Most experienced investors hold properties in LLCs for liability protection. Commercial lenders routinely lend to LLCs — see our LLC commercial loan guide for what’s required. DSCR loans are also available in LLC name for 1–4 unit properties, unlike conventional Fannie/Freddie loans which require individual borrowers.
Finance Your Texas Investment Property
Whether you’re buying your first rental or adding to a portfolio of 50, we have a program for your deal. Hard money for fast acquisition, DSCR for no-income-doc qualifying, bridge for value-add, conventional for stabilized holds. Direct lender since 1998.
Apply Now — Investment Property Loan Pre-Qualification