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Who lends DSCR in Texas
Texas investors get two things most states do not: no real estate transfer tax, and a foreclosure process that usually skips the courthouse. Ten DSCR lenders compared here say they lend in Texas, and at the state median rent of $1,515 the payment math is middle of the pack among the eight states covered.
- Easy Street Capital: Statewide, including Austin and Dallas (its Texas DSCR page)
- Upright: Its Texas page excludes Lubbock.
- Kiavi: Has a Texas DSCR page; loans made by Figure Lending
- Lima One Capital: Has a Texas DSCR page; lends everywhere except AK, ND, SD and VT
- CoreVest: Has a Texas DSCR page, which shows DSCR (1.0x); its 30-year DSCR page says 0.80x
Easy Street Capital's Texas page names Austin and Dallas and claims statewide coverage. Kiavi has a Texas DSCR program page, as does Lima One, whose page invites Texas investors to apply for DSCR loans there. CoreVest publishes a Texas DSCR page. Upright covers the state with one stated hole: it does not currently offer DSCR loans in Lubbock.
Griffin Funding, New Silver, Express Capital Financing, LendingOne and Ternus cover Texas through their published state lists. RCN Capital, Groundfloor and Visio Lending do not publish a state-by-state list.
What a Texas median rent supports
Texas's median gross rent was $1,515 in 2025 (Census ACS 2025, table B25064). Lima One sets its minimum at 1x, so the rent has to cover the whole payment: a ceiling of $1,515 including taxes and insurance, or $1,212 at a 1.25x lender.
Take out an assumed $350 a month for taxes and insurance (the defaults in our DSCR calculator) and Lima One's advertised 6.5% supports a 30-year loan of about $184,300 at break-even, or $136,300 at 1.25x. Swap in the county's actual tax bill and your insurance quote for a real number.
Here is how the same Texas median rent sizes up at each lender that publishes a minimum ratio and a starting rate, with an assumed $350 a month held back for taxes and insurance:
- New Silver: 0.75x minimum at its advertised 6.875% gives about $254,200
- Kiavi: 0.8x minimum at its advertised 6.375% gives about $247,400
- Upright: 0.9x minimum at its advertised 5.99% gives about $222,600
- Express Capital Financing: 1x minimum at its advertised 6.25% gives about $189,200 (it also offers a no-DSCR option)
- Lima One Capital: 1x minimum at its advertised 6.5% gives about $184,300
Texas home values, taxes and the PITIA check
| Measure (ACS 2020-2024) | Texas | Census table |
|---|---|---|
| Median home value | $283,800 | B25077 |
| Median gross rent | $1,403 | B25031 |
| Price-to-rent (value / yearly rent) | 16.9 | Computed |
| Median property tax paid, per year | $4,232 | B25103 |
| 2-, 3- and 4-bedroom median rent | $1,395 / $1,650 / $2,111 | B25031 |
| Homes in 2 to 4 unit buildings | 5.3% | B25024 |
| Median year built | 1992 | B25035 |
| DSCR, median home at 80% loan-to-value and 6.5% | 0.87 | Computed below |
Full PITIA at the median home. Assume 20% down on the $283,800 median value, so a $227,040 loan at 6.5% (the starting rate Lima One Capital advertises) over 30 years: $1,435 a month in principal and interest. Add the median property tax ($4,232 a year, $353 a month) and an assumed $1,200 a year for insurance, and PITIA is $1,888. Against the $1,650 median 3-bedroom rent the DSCR is 0.87. That is below Lima One Capital's published 1x minimum. To reach 1.00x at that rent, the loan would have to fall to about $189,400, which means about $94,400 down (33.3% of the value).
Texas renters pay a median $1,395 for two bedrooms and $1,650 for three (B25031, 2020-2024), and the typical Texas home dates from 1992 (B25035), among the newest of these eight states.
Texas rental market
Renters occupy 37.3% of Texas's 11,607,274 occupied homes (table B25003, 2025), and median gross rent rose 2.7% from $1,475. Prices are flatter: the state index moved +0.4% over the year to 2026 Q2 (FHFA). Metro by metro, El Paso +6.2%, Houston-Pasadena-The Woodlands +0.2%, Dallas-Plano-Irving -0.1%, Austin-Round Rock-San Marcos -0.4% and San Antonio-New Braunfels -3% (FHFA metro index).
Texas prices are up +25.1% over five years, behind New Mexico (+34.6%), Oklahoma (+31.8%) and Arkansas (+37.6%) but ahead of Louisiana (+16.5%). Austin-Round Rock-San Marcos is nearly flat over five years at +1.1%.
Texas trustee sales
The Texas State Law Library calls judicial foreclosure rare in Texas; lenders sell under the deed of trust and Property Code 51.002 instead. The Fannie Mae and Freddie Mac instrument for Texas is a deed of trust (Form 3044), and private DSCR lenders use the same structure. Source: Texas State Law Library.
No transfer tax in Texas
Texas has no real estate transfer tax, and its constitution blocks new ones on transfers of fee simple title. Closing costs on a Texas DSCR purchase come down to lender fees, title, recording, appraisal and insurance. Source: Texas Constitution, Art. 8, Sec. 29.
Buying the $283,800 median Texas home adds no state transfer tax at all; the tax that matters is the yearly property tax bill inside PITIA.
Three Texas-based lenders on this site list rental loans; Corridor Funding publishes a 30-year rental rate. Tidal Loans (Houston, TX: fix and flip, new construction, bridge, DSCR rental, transactional funding, multifamily, commercial); Catalyst Funding (Houston, TX: hard money, rental, DSCR, blanket and portfolio loans); Corridor Funding (Spring Branch, TX: fix and flip, bridge, value add, new construction, rehab to rental, multifamily, commercial, 30-year rental).
Texas deposit, late fee and notice rules
Texas sets no cap on a security deposit (Prop. Code ch. 92) and requires the refund by the 30th day after the tenant surrenders the premises (92.103). A late fee needs a written lease, must be reasonable, and can start only after rent is two full days late; it is presumed reasonable up to 12% of monthly rent in a building with 4 or fewer units (92.019). A month-to-month tenancy ends one month after notice at the earliest (91.001).
What this means for a Texas DSCR deal. No transfer tax keeps closing costs down, but property taxes are the line that sinks Texas ratios: the median bill is $4,232 a year, $353 a month inside PITIA. At Lima One's 1.0x minimum the median home needs roughly 33.3% down to clear. On a single-family rental, the 12% late-fee presumption gives a clear ceiling for the lease.
Before you apply in Texas
- If the property is in Lubbock, leave Upright off your list.
- Use the county appraisal district's tax figure in the DSCR, not a guess.
- Plan for a trustee sale clause in the deed of trust; that is standard in Texas.
General requirements, rate tables and rent rules for every lender: DSCR loans compared, DSCR loan rates, DSCR calculator. Short-term lenders: hard money lenders in Texas. Other states: Florida, Michigan, Ohio, North Carolina, California, Georgia, Illinois.
Short-term loans by city: hard money lenders in Houston, hard money lenders in Dallas and hard money lenders in San Antonio.
Frequently asked questions
How much down payment do you need for a DSCR loan in Texas?
Usually 20%: most lenders that lend in Texas stop at 80% of value on a purchase. Griffin Funding says as little as 15% down at 740+ credit on loans up to $1M, and Express Capital Financing shows 85% but calls it rare.
What credit score do Texas DSCR lenders require?
Published floors run from 620 at Griffin Funding to 660 at Upright, New Silver and Lima One. Kiavi and LendingOne do not publish one.
Can I get a DSCR loan in Lubbock?
Not from Upright, which says it does not currently offer DSCR loans there. Easy Street Capital's Texas page says it lends statewide.
Does Texas charge a transfer tax on a rental purchase?
No. Texas has no real estate transfer tax, and Article 8, Section 29 of its constitution bars new ones on fee simple transfers.
Which lenders have a Texas DSCR page?
Easy Street Capital, Kiavi, Lima One and CoreVest each publish a Texas DSCR page; Upright covers Texas from its state list with Lubbock excluded.
How do Texas property taxes affect a DSCR loan?
They sit inside the payment the rent must cover. The median Texas property tax bill is $4,232 a year ($353 a month), which on the median home pushes the full PITIA to $1,888.