TEXAS MORTGAGE BROKER · SINCE 2012
Investment Property Loans in Texas
Building a rental portfolio in Texas? I work with investors across the state to secure financing that fits their strategy, from conventional investment loans to DSCR products.
How Do You Finance an Investment Property in Texas?
Texas investment properties are typically financed one of two ways: a conventional investment loan, which requires 15% to 25% down depending on property type and number of units, or a DSCR loan, which qualifies you on the property’s rental income rather than your personal income. DSCR suits investors with complex tax returns or multiple properties.
Key facts:
- Conventional investment loans: 15% to 25% down depending on property type and number of units
- Conventional investment loans are capped at the 2026 conforming loan limit of $806,500 (FHFA)
- DSCR loans: minimum debt service coverage ratio of 1.0, meaning rental income covers the mortgage payment
- Credit score: typically 680 or higher for investment properties
- Cash reserves: 6+ months of mortgage payments
Texas is one of the hottest rental markets in the country. Cities like Austin, Houston, Dallas, and San Antonio continue to attract new residents, which means strong demand for rental housing (see the Texas housing market page for current conditions). Whether you are buying your first investment property or scaling a portfolio, the financing matters.
Every investor’s strategy is different. Whether you are focused on long-term rentals, short-term vacation properties, or multi-family units, I will help you find the right loan product and structure the deal to maximize your return.
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DSCR Loans Available
Qualify based on the property’s rental income, not your personal W-2. Ideal for self-employed investors and those scaling a portfolio.
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Multiple Property Financing
Whether it is your second investment property or your tenth, I have access to products that accommodate experienced investors.
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Texas Market Expertise
I work with investors across every major Texas market. I understand the rental dynamics in Houston, DFW, Austin, and San Antonio.
What Are the Requirements for an Investment Property Loan in Texas?
For a conventional investment loan, plan on 15% to 25% down, a credit score around 680 or higher, and cash reserves of six or more months of payments. For a DSCR loan, the property itself qualifies: its rental income needs to cover the mortgage payment, a debt service coverage ratio of 1.0 or higher.
✓ Conventional: 15-25% down payment depending on property type and number of units
✓ DSCR: Minimum DSCR ratio of 1.0 or higher (property income covers the mortgage)
✓ Investment properties require higher credit scores (typically 680+)
✓ Cash reserves of 6+ months of mortgage payments
✓ Property must be in rentable condition or meet rehab loan guidelines
The core difference between the two paths:
| Feature | Conventional investment loan | DSCR loan |
|---|---|---|
| How you qualify | Personal income, employment, and debt-to-income ratio | The property’s rental income (DSCR of 1.0 or higher) |
| Best suited for | W-2 borrowers with straightforward income | Investors with complex tax returns or multiple properties |
| Down payment | 15% to 25% depending on property type and units | Varies by lender and property cash flow |
Ready to Grow Your Texas Rental Portfolio?
I will help you structure the financing to match your investment strategy. Schedule a call to talk numbers.
Anthony Ferrando | Ferrando Financial LLC | NMLS# 2403080