Best DSCR Lenders in Texas for STR Investors in 2026

You found the market, ran the numbers, and the deal pencils. Now you need the loan. If you are buying a short-term rental in Texas in 2026, a DSCR loan is almost certainly the right tool: no W-2 required, no tax return scrutiny, qualification based on the property’s rental income rather than yours. The challenge is that not all DSCR lenders are equal, and the Texas market has enough quirks (hello, property taxes) that picking the wrong lender can cost you a deal or worse, cost you after closing.

I spent the better part of a decade managing STR portfolios across the Southeast before turning full-time to evaluating the tools and lenders investors actually use. This article is what I wish had existed when I was sourcing my first dozen DSCR loans. I cover the best DSCR lenders in Texas for 2026, what makes Texas different from other states for DSCR qualification, and which specific markets are worth your attention right now.

What Makes Texas Different for DSCR Borrowers

Before you shop lenders, understand the math. Texas has a few factors that affect DSCR calculations in ways that investors coming from other states consistently underestimate.

Property taxes are real. Texas ranks 7th highest in the country for property taxes, with effective rates ranging from 1.31% to 1.81% depending on county. In Travis County (Austin), investors regularly see effective rates around 2%. On a $400,000 property, that is $6,400 to $8,000 per year in taxes. Lenders include that number in your monthly PITIA (principal, interest, taxes, insurance, association dues), and it directly reduces your DSCR ratio. I have seen deals that looked great on cap rate get rejected at underwriting because the tax load pushed the DSCR below the lender threshold. Run that number first.

Insurance costs are volatile. Coastal Texas markets like Galveston and Port Aransas carry hurricane and flood exposure. Inland markets face hail and wind. Insurance premiums have risen sharply since 2022. Budget at least $3,000 to $5,000 per year for a typical single-family STR in Texas, more if you are near the coast. Like property taxes, insurance folds into PITIA and compresses your ratio.

No state income tax is a legitimate edge. Texas investors keep more of their net rental income than investors in states like California or New York. That does not change how lenders calculate DSCR, but it does improve your actual returns after closing and gives you more cushion to carry lean months without distress. When I model Texas deals versus comparable Southeast markets, the tax advantage typically adds 8% to 12% to effective net yield.

The 20% appraisal cap for non-homestead properties was set to expire in 2026. If the Texas legislature does not extend it, assessed values on investment properties could reset to full market value, which means higher tax bills. Watch this closely if you are buying in 2026, particularly in appreciating markets like Austin.

How DSCR Loans Work for Texas STR Investors

A DSCR loan (Debt Service Coverage Ratio loan) qualifies you based on whether the property’s rental income covers its debt service. The formula is simple: monthly gross rent divided by monthly PITIA. A 1.25 DSCR means the property generates 25% more income than its total monthly payment. Most lenders want a minimum of 1.0 to 1.25.

For short-term rentals, lenders differ on how they calculate income. Some use long-term market rent comps from the appraisal. Others accept AirDNA projections or actual STR booking history. This distinction matters enormously in Texas markets where STR income can run 2x to 3x long-term rents. A Galveston beach house generating $4,500 per month during summer might only comp at $1,800 on a traditional rent schedule. Make sure your lender accepts STR income methodology before you go to contract.

Quick Comparison: Top DSCR Lenders in Texas (2026)

The Top 10 DSCR Lenders in Texas for STR Investors

1. Beeline

Beeline is my top pick for Texas STR investors in 2026, and not just because they have a referral relationship with StaySTRA. The more important reason is the application experience. Most DSCR lenders make you hunt down a loan officer, wait days for a pre-approval, and wade through a document checklist that feels like it was designed by someone who genuinely dislikes borrowers. Beeline’s process takes under 10 minutes to start, qualifies on rental income instead of W-2s, and gets you to a Loan Guide who actually tracks your file.

For Texas investors, Beeline lends in Austin, Dallas, Houston, and San Antonio. They accept short-term rental income history (no need to pretend your Airbnb is a long-term rental for underwriting purposes), require a minimum 640 credit score, and ask for 20% down. The non-conforming closing fee is $1,999, which is transparent and below what many competitors bury in origination points.

If you close a loan through Beeline, use referral code ed74. It connects you to StaySTRA’s referral program and does not cost you anything.

Apply with Beeline (use referral code ed74)

2. OfferMarket

OfferMarket runs a true marketplace model: you submit your loan request, lenders on their platform compete, and you pick the best terms. For Texas investors, that dynamic matters. DSCR pricing varies meaningfully by lender, and having multiple bids on the same deal can move your rate 0.25% to 0.50%, which adds up to real money on a 30-year note.

Their published program parameters: rates from 5.75% to 7.5%, loan amounts from $55,000 to $2,000,000, 30-year fixed or interest-only, 80% LTV on purchases and rate-term refis, 75% on cash-out. Minimum DSCR is 1.0, minimum FICO is 680. They accept STR income and lend actively in Texas. Their origination runs 0.5 to 2 points with a $1,500 floor. That’s not the cheapest, but the competition element on the platform tends to offset it.

One thing to know: OfferMarket underwriting uses the lower of actual rent or market rent for DSCR calculation. For established STR properties with strong booking history, actual rent will likely win. For new or repositioned properties, you may need AirDNA backup to support projections.

Get competing DSCR quotes on OfferMarket

3. Easy Street Capital

Easy Street Capital is based in Austin, which matters for Texas investors more than it might seem. A locally headquartered lender understands Texas market dynamics firsthand: what Galveston beach properties actually rent for, why a Fredericksburg wine country cabin can justify a $350 ADR, and how to read an AirDNA report for an Austin property affected by SXSW seasonality. Their underwriters are not looking at your deal through a national template.

They accept AirDNA projections for STR income qualification, which is the single most important feature for new STR acquisitions. Minimum loan is $75,000, they start at 80% LTV, and they have no stated minimum DSCR, meaning they evaluate deals holistically rather than cutting them off at a ratio threshold. Their rate sheet starts around 5.75% for strong files. They lend on DSCR, fix and flip, and new construction, which is useful if you want a single lender relationship as you scale a Texas portfolio.

4. Griffin Funding

Griffin Funding’s DSCR program is one of the most flexible nationally, and that flexibility extends to Texas. They go down to a 0.75 DSCR, which means a property that covers only 75 cents of every dollar of its debt service can still qualify with a strong enough credit profile. They also go up to 85% LTV, reducing your required down payment to 15% on qualifying deals.

Rate range runs 5.875% to 7.375% for well-qualified borrowers. They use AirDNA for STR income projections, minimum loan $100,000, and they lend across all major Texas markets. The 0.75 DSCR floor is a genuine safety valve for deals in markets with high property taxes or higher insurance loads, which Texas coastal properties can hit.

5. New Silver

New Silver qualifies for Texas investors primarily because of their liberal DSCR floor (also 0.75) and their unusual income treatment: they do not apply a vacancy factor to the income calculation. Most lenders discount gross rent by 5% to 10% for vacancy when computing your ratio. New Silver uses the full gross rent figure, which can push borderline deals over the threshold. Rates start around 5.75% with a wide range up to 12% depending on credit and deal complexity. Maximum LTV is 80%, minimum loan $75,000.

6. Angel Oak Mortgage

Angel Oak is one of the largest non-QM lenders in the country, which means they have deep capacity and consistent execution. For Texas investors doing larger deals, consistency matters as much as rate. They go up to 85% LTV for qualified borrowers and accept AirDNA STR income reports. Minimum DSCR is 1.0, minimum loan $75,000. Their jumbo non-QM capability is worth noting for high-value markets like Austin Hill Country or lakefront properties on Lake Travis.

7. Visio Lending

Visio specializes exclusively in rental property loans, which gives them a narrower focus than generalist non-QM shops. That specialization tends to produce more consistent underwriting decisions. Rates run 6.5% to 7.5%, minimum DSCR 1.0, 80% LTV, minimum loan $100,000. They use market rent analysis for income qualification rather than STR projections, which works fine for established properties with strong booking history but can be a limitation on new STR purchases in markets where STR income significantly exceeds long-term comps.

8. Lima One Capital

Lima One lends on both DSCR rental loans and bridge/fix-and-flip, and they are a solid choice for Texas investors who want to combine acquisition and renovation financing under one lender relationship. Minimum DSCR ranges from 0.90 to 1.0 depending on credit tier, 80% LTV, minimum loan $75,000. Rates typically run around 7.5% for DSCR rental loans. They do consider STR income in their analysis. Not the cheapest option, but operationally solid for larger portfolios.

9. Kiavi

Kiavi is a tech-forward lender that processes DSCR loans quickly, which is an advantage in competitive Texas markets where sellers are not waiting around. Their minimum DSCR is 1.1, slightly higher than many competitors, and they use market rent rather than STR projections, which caps their usefulness for new STR acquisitions. Rates start around 7.25%. Where Kiavi shines is repeat-borrower speed: if you have used them before, subsequent transactions move through underwriting faster than most lender pipelines I have seen.

10. RCN Capital

RCN Capital rounds out the list with competitive entry-level pricing: rates starting from 5.0% on their most favorable files. In practice, most Texas borrowers will land in the 6.5% to 7.5% range depending on DSCR and credit. Minimum DSCR 1.0, 80% LTV, minimum loan $75,000. They use market rent analysis for income qualification. Solid for standard residential STR deals without unusually complex income scenarios.

Texas STR Markets: Where These Loans Get Deployed

Knowing your lender is only half the equation. Here is what StaySTRA’s market data shows for the major Texas STR markets as of early 2026.

Austin

According to StaySTRA data, Austin has 9,289 active STR listings with an average daily rate of $284 and average monthly revenue of $2,963. Occupancy runs 38% in the February slow period but spikes to 63.6% in March during SXSW. Typical home values sit around $494,727. The market has normalized significantly since the 2021-2022 peak, but top-quartile properties still generate over $3,695 per month. DSCR underwriting on Austin properties requires careful attention to Travis County property taxes, which are among the highest in the state.

San Antonio

According to StaySTRA data, San Antonio has 5,712 active listings averaging $217 ADR with $2,310 monthly revenue at current occupancy. Historical averages show stronger numbers: $200 ADR and 45.7% occupancy for 2025 full-year. With a typical home value of $247,131, entry costs are lower than Austin, making it one of the better markets for DSCR qualification at 80% LTV. The Riverwalk, Alamo, and major convention traffic drive consistent demand year-round. For DSCR lenders looking at San Antonio STR deals, the income is consistent and appraiser rent comps are generally supportive.

Dallas

According to StaySTRA data, Dallas has 4,739 active listings at $221 ADR with $2,136 average monthly revenue in early 2026. The major 2026 story for Dallas is the FIFA World Cup: June bookings are running 300% to 500% higher than the same period last year. That creates a significant revenue spike for properties positioned near FIFA venues, but also inflated AirDNA projections that you need to account for in long-term DSCR modeling. Your lender should be looking at stabilized income, not peak-event income.

Houston

According to StaySTRA data, Houston has 9,325 active STR listings at $218 ADR and $2,041 average monthly revenue. Demand sources are diversified: Texas Medical Center, George R. Brown Convention Center, professional sports, and the port. That diversity produces more stable occupancy than purely tourist-dependent markets. March is the peak month at 52% occupancy, driven by Houston Livestock Show and Rodeo. With typical home values lower than Austin or Galveston, DSCR qualification is often cleaner in Houston than in more expensive Texas markets.

Galveston

According to StaySTRA data, Galveston has 5,921 active listings at $302 ADR and $2,960 average monthly revenue. Peak summer months push occupancy to 70% with average revenue of $5,426. This is one of the strongest STR revenue markets in the state. The critical counterpoint: Galveston flood and windstorm insurance is expensive and sometimes difficult to obtain. I have seen otherwise qualifying deals fall apart at the insurance quote stage. Budget for $6,000 to $10,000 per year in insurance on a typical beach property, and get the insurance quote before you go to contract. If the insurance number blows your DSCR, you need to know before, not after, your earnest money is at risk.

Fredericksburg and the Hill Country

The Texas Hill Country has become one of the most sought-after STR investment corridors in the state. Fredericksburg, Wimberley, New Braunfels, and surrounding areas benefit from strong weekend demand from San Antonio and Austin, wine country tourism, and outdoor recreation. STR income in this region typically runs well above long-term rent comps. Lenders who accept AirDNA projections are essentially required here. That narrows your lender list, but Easy Street Capital (Austin-based), Griffin Funding, and Angel Oak are all solid options for Hill Country deals.

What to Watch Out for When Comparing DSCR Lenders

Rate is what most investors compare first. It is also the least reliable comparison point unless everything else is equal. Here is what actually differentiates lenders for Texas STR deals.

STR income methodology. Lenders that use AirDNA or allow actual STR booking history give you access to the full revenue picture. Lenders that only use long-term market rent from the appraisal will systematically undervalue your Texas STR income, which either kills the deal or forces you to put more money down to compensate. Know which camp your lender is in before you run the numbers.

Minimum DSCR and Texas tax math. If your target property has a 1.15 DSCR before taxes and insurance, and your lender minimum is 1.20, you are declined. Texas property taxes and insurance can easily drop a 1.25 pre-PITIA ratio down to 1.0 or below. Work backward from the lender’s threshold and build the full PITIA before deciding whether a deal is viable.

Prepayment penalties. Most DSCR loans carry 3 to 5 year step-down prepayment penalties. If you plan to refinance or sell within that window, the penalty can eliminate your equity gains. Read the penalty structure before signing, not after.

Closing timeline. If you are competing for a desirable property in Dallas or San Antonio, a lender who needs 45 days to close loses deals that a 21-day lender wins. Ask explicitly about typical close times and request references from recent Texas transactions. Yes, I read the rate sheet. I also read the funding timeline, and so should you.

Modeling a Texas DSCR Deal: A Quick Example

Let’s run the math on a $350,000 San Antonio property to illustrate how the Texas tax reality plays out.

Assume a DSCR loan at 7.0% interest, 30-year term, 20% down ($70,000). Loan amount: $280,000. Monthly P&I: approximately $1,864.

Add Texas property taxes at a conservative 1.6% rate: $5,600 per year, or $467 per month. Add insurance at $3,600 per year, or $300 per month. No HOA.

Total PITIA: $2,631 per month.

San Antonio average monthly STR revenue: $2,791 (2025 annual average from StaySTRA). DSCR: $2,791 divided by $2,631 = 1.06. That clears a 1.0 minimum but falls short of a 1.25 requirement. At a 1.0 minimum lender, this deal works. At a 1.25 minimum lender, you need to either put more down, find a property with higher STR income, or negotiate a lower purchase price.

This is why lender selection is not just about rate. The minimum DSCR threshold can make or break the deal entirely.

Accuracy Note

Regulations and tool features change frequently. We do our best to keep this information current, but always verify deadlines, fees, and requirements directly with your local government or software vendor before taking action. Lender programs, rates, and qualification requirements change regularly. Contact each lender directly to confirm current terms before submitting an application.

Run the Numbers for Texas

Before you commit to a Texas STR purchase, run the math. Our free Texas Airbnb Calculator pulls real market data so you can model your ROI with actual numbers, not guesses.

For city-specific deep dives, check out our location pages for Austin, San Antonio, Dallas, Houston, and Galveston with current ADR, occupancy, and revenue data. For a broader comparison of national DSCR lenders, see our full Best DSCR Lenders for STR Investors in 2026 guide.

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Disclosure: StaySTRA has referral relationships with Beeline (referral code ed74) and OfferMarket. If you use our links to contact them, we may receive a referral fee at no additional cost to you. All lender evaluations in this article reflect our independent research.