DSCR Loans
DSCR Loans in San Antonio — Workforce Housing Investor Financing
Term Sheet in 5 Minutes
San Antonio is Texas's most accessible major market for buy-and-hold investors — lower entry prices, steady rental demand from a large workforce and military population, and some of the best cash-on-cash returns in the Texas Triangle. Our DSCR loans qualify on what the property earns, not your tax return, so you can move on San Antonio deals as fast as the market does. No W-2s, no paystubs, no two years of returns. Up to 80% LTV. Vesting in your LLC.
Price in TX Triangle
Accepted as Qualifying Rent
Returns Required
~2.1% Tax Rate
DSCR Loans
What DSCR Looks Like in San Antonio
San Antonio's investor market is dominated by workforce housing — single-family and small multifamily rentals in the $150,000–$250,000 range, rented to working-class tenants and military families. It's the lowest entry-price major metro in the Texas Triangle, which means DSCR ratios here tend to run healthier than in higher-cost markets like Austin or Dallas — the rent-to-price relationship simply works better.
A meaningful share of San Antonio's rental demand comes from military families stationed at JBSA-Lackland, JBSA-Randolph, and JBSA-Fort Sam Houston. Many of these tenants pay rent backed by a stable Basic Allowance for Housing (BAH), which we treat as qualifying income for DSCR calculation on eligible leases.
Bexar County's effective property tax rate runs approximately 2.1% — among the highest in the Texas Triangle. Our underwriting team factors actual Bexar County tax data into every San Antonio 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
- Workforce housing investors targeting single-family and small multifamily rentals in San Antonio's Eastside, Westside, and Beacon Hill-adjacent neighborhoods
- Military-rental investors leasing to tenants near JBSA-Lackland, JBSA-Randolph, and JBSA-Fort Sam Houston, with BAH accepted as qualifying rent
- LLC and LP borrowers who hold rental property in entities for liability or estate-planning reasons
- Investors with multiple properties who have hit the conventional 10-property cap
Foreign nationals investing in U.S. rental property without U.S. tax history - Investors scaling a San Antonio rental portfolio toward our 5+ property portfolio loan program
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 San Antonio DSCR Deal
An investor purchases a 3-bedroom single-family rental near San Antonio's Eastside for $185,000. Market rent supports $1,650/month. With taxes, insurance, and HOA factored at Bexar County's ~2.1% effective rate, the all-in monthly payment runs approximately $1,435 — a DSCR of 1.15.
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 lease (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: Bexar County property tax rates (approximately 2.1% effective) are among the highest in the Texas Triangle and materially affect DSCR calculations — our team uses actual county tax data for every San Antonio 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 San Antonio area 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 Bexar County tax data for every San Antonio 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 San Antonio Rental?
Get a real DSCR term sheet in five minutes. No tax returns. No income verification. Direct lender, in-house underwriting, in-house funding. Serving Bexar County and the Greater San Antonio metro.