DSCR Loan Requirements in Texas (2026)
DSCR (Debt Service Coverage Ratio) loans are the fastest-growing commercial loan product in Texas because they qualify based on property cash flow, not your income. No W-2s, no tax returns, no employment verification.
Key DSCR Loan Requirements
| Requirement | Minimum | Preferred |
|---|---|---|
| DSCR ratio | 1.0 (break-even) | 1.25+ |
| Credit score | 620 | 680+ |
| Down payment | 20–25% | 30%+ |
| Property types | 1–4 unit, multifamily, mixed-use, commercial | — |
| Loan amount | $100K | Up to $5M+ |
| Entity ownership | LLC, Corp OK | — |
How DSCR Is Calculated
DSCR = Net Operating Income ÷ Annual Debt Service
Example: Property generates $8,500/month gross rent, expenses of $2,500/month = $6,000 NOI. Annual debt service on a $600K loan at 7.5% = $50,376/year = $4,198/month. DSCR = $6,000 ÷ $4,198 = 1.43 — excellent.
What Documents Do DSCR Loans Require?
Typically: current leases or rent roll, 2–3 months bank statements (to verify rent deposits), property insurance, LLC operating agreement (if applicable), and a purchase contract or property info. No tax returns, no pay stubs.