DSCR Loans
DSCR Lender in Austin
Term Sheet in 5 Minutes
New Century Lending finances Austin real estate investors with DSCR loans built for STR operators, tech-wealth buyers, and buy-and-hold strategies. Qualify on rental income — not personal income, tax returns, or W-2s. Serving Travis County and the Greater Austin metro.
of Texas
STR Income Accepted
Returns Required
~1.9% Tax Rate
DSCR Loans
What DSCR Looks Like in Austin
Austin is the STR capital of Texas — and one of the most competitive real estate markets in the country for short-term rental investors. The dominant DSCR borrower here is an STR operator targeting East Austin, South Lamar, and rapidly appreciating corridors throughout Travis County, where tech workers, university demand, and year-round tourism create deep, stable short-term rental income.
Out-of-state investors — especially from California and New York — target Austin specifically for its strong AirDNA-projected revenue, rapidly appreciating home values, and cap rates that still pencil relative to coastal markets. DSCR loans are the dominant financing tool because they qualify on what the property earns, not what the investor's tax return shows.
Travis County's effective property tax rate runs approximately 1.9% — meaningfully higher than the national average. Our underwriting team factors actual Travis County tax data into every Austin DSCR term sheet, so there are no surprises between application and closing.
🏠 DSCR Loans Are Non-QM Loans
Every DSCR loan we originate is a business-purpose Non-QM loan on non-owner-occupied investment property. That means no tax returns, no W-2s, no debt-to-income analysis — ever. If you have been searching for a Non-QM lender for rental property, DSCR is almost certainly the program you are looking for.
See all of our Non-QM loan programs →Who DSCR Loans Are Built For
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Buy-and-hold investors targeting Class A and B suburban rentals in Plano, Frisco, McKinney, and Arlington
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LLC and LP borrowers who hold rental property in entities for liability or estate-planning reasons
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Investors with multiple properties who have hit the conventional 10-property cap
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Foreign nationals investing in U.S. rental property without U.S. tax history
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Build-to-rent investors refinancing newly stabilized SFR communities into long-term DSCR financing
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Out-of-state investors from CA, NY, and IL targeting DFW for no-income-tax advantages and strong cap rates
DSCR Loan Terms
| Loan Amounts | $100,000 to $5,000,000+ |
| Maximum LTV | Up to 80% purchase, 75% cash-out refi |
| Minimum DSCR | No minimum — sub-1.0 programs available |
| Loan Term | 30-yr fixed, 5/6 ARM, 7/6 ARM, 10-yr I/O |
| Rates | From 6.25% |
| Property Types | 1–4 unit, condos, townhomes, STRs |
| Vesting | LLC, LP, corporation, or individual |
| Income Docs | None — qualified on property cash flow |
| Credit Score | From 660 FICO; best pricing at 720+ |
| Pre-Payment | Step-down structures; no-prepay available |
| Reserves | 3–6 months PITIA depending on program |
A Typical Austin DSCR Deal
An investor purchases a 3-bedroom single-family home in East Austin for $525,000 and lists it as a short-term rental on Airbnb and Vrbo. AirDNA projects gross revenue of $58,000 annually — approximately $4,850/month. With taxes, insurance, and HOA factored at Travis County's ~1.9% effective rate, the all-in monthly payment runs approximately $3,100 — a DSCR of 1.56.
At 75% LTV with a 30-year fixed DSCR loan, this deal qualifies for our standard pricing tier with no rate adjustment. No tax returns, no W-2s, no personal income documentation — just the appraisal, the AirDNA report (or market rent schedule), and a clean title.
Note: this is an illustrative example. Actual terms depend on the specific property, borrower credit profile, and current rate environment.
How to Qualify for a DSCR Loan
1. The property has to cash-flow (or come close)
We calculate DSCR using market rent (supported by an appraiser's 1007 rent schedule or, on STRs, a third-party AirDNA report) divided by the all-in monthly payment including taxes, insurance, and HOA. Most of our DSCR programs require a ratio of 1.0 or higher for best pricing, but we have programs that fund down to a sub-1.0 DSCR with rate adjustments. Note: Travis County property tax rates (approximately 1.9% effective) are among the highest in the nation and materially affect DSCR calculations — our team uses actual county tax data for every Austin deal.
2. Credit profile
We look at the middle FICO score of all guarantors. Programs are available starting at 660; pricing improves materially at 700+ and again at 740+. Recent late mortgage payments, bankruptcies, or foreclosures within the last 36 months may require additional underwriting but do not automatically disqualify.
3. Investor experience
First-time investors are eligible. Experienced investors (2+ rental properties owned for 12+ months) qualify for better pricing and higher LTVs.
How the DSCR Loan Process Works
Step 1 — Apply (5 minutes)
Tell us about the property and the deal. No tax returns required — ever. Our application takes about five minutes.
Step 2 — Term sheet (same day)
Our AI underwriting platform analyzes the deal in real time and returns a fundable term sheet with rate, points, LTV, and conditions — usually within hours of application. DSCR, bridge, and hard money programs all available for Austin and Travis County properties.
Step 3 — Property valuation
We order the appraisal with a 1007 rent schedule. Most appraisals come back within 7–10 business days; some markets faster. We use actual Travis County tax data for every Austin appraisal — so your DSCR number reflects reality from day one.
Step 4 — Underwriting & closing
Title, insurance, and entity documentation are reviewed in parallel. Most DSCR loans close in 21–30 days from application — faster on clean files.
DSCR Loan Frequently Asked Questions
What is a DSCR loan?
A DSCR loan is an investment-property loan where the borrower qualifies based on the property's projected cash flow rather than personal income. There are no tax returns, W-2s, or paystubs required.
Are DSCR loans considered Non-QM loans?
Yes. DSCR loans are Non-QM loans because the borrower qualifies on property cash flow rather than personal income documentation, which does not meet Qualified Mortgage standards. DSCR loans are specifically business-purpose Non-QM loans for non-owner-occupied investment property, which is what we specialize in.
What is the minimum DSCR ratio you require?
We have programs with no minimum DSCR (loans on properties that do not yet cash-flow), with rate adjustments. Best pricing is on properties with a DSCR of 1.0 or higher.
Do I need to provide tax returns for a DSCR loan?
No. DSCR loans are built specifically so investors do not need to provide tax returns, W-2s, paystubs, or any personal income documentation.
Can I close a DSCR loan in an LLC?
Yes. We routinely close DSCR loans in LLCs, LPs, and corporations. We also accept individual vesting if you prefer to take title personally.
What is the minimum credit score for a DSCR loan?
Programs are available starting at a 660 middle FICO score. Pricing improves at 700, again at 720, and again at 740.
Are short-term rentals (Airbnb, Vrbo) eligible?
Yes. We use AirDNA or 12 months of operating history to qualify STRs. Some markets and HOAs restrict STR use — we underwrite each market individually.
Can I get a DSCR loan as a foreign national?
Yes. We have a dedicated foreign-national DSCR program for investors without U.S. tax history.
How fast can a DSCR loan close?
Most DSCR loans close in 21–30 days from application. The longest-pole item is typically the appraisal.
Does New Century Lending offer DSCR loans in all four Texas metros?
Yes. We originate DSCR loans across Houston, Dallas-Fort Worth, Austin, and San Antonio. Each metro has its own underwriting nuances — select your city above for market-specific information.
How do Texas property taxes affect my DSCR qualification?
Texas effective property tax rates run 1.6%–2.5% depending on county — among the highest in the nation. Our underwriting team uses actual county tax data for every Texas deal. No surprises at closing.
Can I get a DSCR loan in Texas as an out-of-state investor?
Yes. Many of our Texas borrowers are based in California, New York, and Illinois. No state income tax, strong rental demand, and favorable landlord laws make Texas a top target for out-of-state investors.
In Which Texas City Are You Investing?
Select your market below for city-specific DSCR loan information, sample deals, and local underwriting notes.
Houston
Texas's highest-volume DSCR market. BRRRR investors target EaDo, Third Ward, and Acres Homes. Harris County effective tax rate: ~2.0%.
Dallas-Fort Worth
Corporate-relocation capital of the U.S. Buy-and-hold investors target Plano, Frisco, McKinney, and Arlington. Dallas County effective tax rate: ~1.8%.
Austin
STR capital of Texas. DSCR loans qualified off AirDNA-projected revenue for Airbnb and Vrbo operators. Travis County effective tax rate: ~1.9%.
San Antonio
Workforce housing and military rental market. Lower entry prices with strong DSCR ratios. Bexar County effective tax rate: ~2.1%.
Ready to Close Your Next Austin DSCR Deal?
Get a real DSCR term sheet in five minutes. No tax returns. No income verification. Direct lender, in-house underwriting, in-house funding. Serving Travis County and the Greater Austin metro.