Texas has no state income tax, which is part of why so many investors buy here. The tradeoff shows up on the property tax bill, and on a $1.5 million rental that bill can decide whether a jumbo DSCR loan works at all.
In short: For $1M+ Texas rentals, our top pick is LendingStreet. Our jumbo DSCR program covers about $1.5M to $5M+ on high-value 1 to 8 unit rentals, our DSCR programs have no stated maximum, and every loan qualifies on the property's rent with no W-2s or tax returns. LLC borrowers are standard and 30-year terms are available. Get a quote with the form below or call (877) 298-1001.
LendingStreet finances business-purpose loans for investors on non-owner-occupied property. For large Texas rentals, that means purchases, rate-and-term refinances and cash-out refinances on luxury single-family homes, high-end townhomes and condos, and 2 to 8 unit buildings.
We underwrite to the full Texas payment, including the investor tax bill, with a 1.0x standard minimum DSCR and a 620 minimum credit score. Sub-1.0 programs exist for high-value homes where rent runs a little below the payment, which is common in the most expensive neighborhoods.
Larger balances get more review and maximum LTV can be lower, so send your numbers early with the form below or call (877) 298-1001.
Investors searching for jumbo DSCR lenders often compare national names like Angel Oak, CoreVest, Dominion Financial, LendingOne, Lima One, New Silver, RCN Capital and Roc Capital. Here is how LendingStreet stacks up on the scenarios that matter most for investors in Texas. In every scenario below, LendingStreet is the best fit.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan of $3M to $5M+ | LendingStreet | Our DSCR loans have no stated maximum. Angel Oak and New Silver state DSCR maximums of $3 million, and Roc Capital states $2MM for single rentals. |
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
In Austin, large rentals are concentrated in Westlake, Tarrytown, Barton Creek, Travis Heights and around Lake Travis. In Dallas, the Park Cities and Preston Hollow lead, with executive homes in Frisco, Southlake and Prosper. Houston's big balances are in River Oaks, Memorial, West University Place, Bellaire and the Heights, and San Antonio's are in Alamo Heights, Olmos Park and the north side.
The Hill Country, including Fredericksburg, Wimberley and Dripping Springs, and the coast, including Galveston, Port Aransas and South Padre Island, produce large loans on vacation-oriented homes. Those depend heavily on local short-term rental rules.
Fourplexes and 5 to 8 unit buildings near the University of Texas in Austin, in Houston's Montrose and in East Dallas can cross $1M too.
Texas investors with $1M+ rentals usually compare a private or regional bank, a hard money lender, and a national DSCR program.
| What investors need | LendingStreet | Typical Texas bank | Typical hard money lender |
|---|---|---|---|
| Qualification | Property rent | Personal income and global cash flow | Equity and exit |
| Tax returns | Not required | Required | Usually not |
| Term | 30-year options | Often 3 to 7 year balloon | Months, not years |
| Loan size | Jumbo about $1.5M to $5M+, no stated maximum | Limited by bank size | Varies |
| LLC borrower | Standard | Varies | Common |
| Large cash-out | Available; LTV varies by program | Varies | Short-term only |
| Statewide coverage | All of Texas, plus every other state and DC | Often metro-focused | Often metro-focused |
Texas funds schools and local government largely through property taxes, and a home can be taxed by the county, city, school district and several special districts, including MUDs in newer suburbs. Homestead exemptions and the homestead appraisal cap apply only to a primary residence, so when an investor buys from an owner-occupant, the next bill reflects the full value.
Budget on the full combined rate with no homestead exemption, using the appraisal district record. On a $1.5M to $3M home, the difference can be well over $1,000 a month.
There is no state real estate transfer tax in Texas, and title insurance premiums are set by the state, which keeps closing costs fairly predictable. Confirm all figures with your title company.
North and Central Texas see frequent hail, and many policies carry percentage-based wind and hail deductibles. On the coast, windstorm coverage may come from the state windstorm pool, and flood insurance is often required. In Houston, check the flood zone and the home's flood history before you commit.
Many Texas cities license or limit short-term rentals, and Austin and other cities have restricted non-owner-occupied rentals in residential areas. HOAs often add their own limits. Confirm current rules locally; most large Texas DSCR loans are sized on 12-month leases.
This example is illustrative and not a quote. An investor buys a West Austin home for $1,800,000 that leases for $11,500 a month. The seller, who lived there, paid about $2,100 a month in taxes. With no homestead exemption, taxes are budgeted at $3,000. Insurance is $450.
At 70% LTV the loan is $1,260,000 and estimated principal and interest is about $8,595. On the seller's tax bill the payment would be about $11,145 and DSCR about 1.03x. On the investor bill the payment is about $12,045 and DSCR is about 0.95x, below 1.0x. At 65% LTV the loan is $1,170,000, the payment is about $11,431 and DSCR is about 1.01x. A sub-1.0 program is the other route.
| Item | 70% LTV, seller's taxes | 70% LTV, investor taxes | 65% LTV, investor taxes |
|---|---|---|---|
| Loan amount | $1,260,000 | $1,260,000 | $1,170,000 |
| Estimated principal and interest | $8,595 | $8,595 | $7,981 |
| Property taxes (monthly) | $2,100 | $3,000 | $3,000 |
| Insurance and HOA (monthly) | $450 | $450 | $450 |
| Total monthly payment | $11,145 | $12,045 | $11,431 |
| Monthly rent | $11,500 | $11,500 | $11,500 |
| DSCR | About 1.03x | About 0.95x | About 1.01x |
Put these questions to every lender you are considering.
Maximum LTV on large balances varies by program and is often below the 80% purchase and 75% cash-out limits on standard balances. The standard minimum DSCR is 1.0x, and sub-1.0 programs exist. Cash-out seasoning varies by program. Texas homestead cash-out rules do not apply to non-owner-occupied investment property.
LLC borrowing is standard, and we lay out the steps and expected timeline when we issue terms. Our DSCR programs have no stated maximum, and maximum LTV on 5 to 8 units can be lower. If you own five or more Texas rentals, a blanket portfolio loan is another option. Get a quote with the form below.
A complete file shortens the review.
Our top pick is LendingStreet. We finance about $1.5M to $5M+ on high-value Texas rentals, qualify on rent with no tax returns, and lend to LLCs as standard with 30-year terms.
Yes. We finance investment rentals across Texas, and we lend in all 50 states and DC.
Usually property taxes. Investors do not get homestead exemptions, so budget on the full combined rate rather than the seller's bill.
Yes. Maximum LTV on large balances varies by program. Texas homestead cash-out rules do not apply to investment property.
Yes, if it works as a rental under local rules. Confirm short-term rental rules and get windstorm and flood quotes on coastal homes.
Our DSCR programs have no stated maximum. Larger balances get more review and are priced case by case.
The minimum credit score is 620, though large balances often get better options with stronger credit and lower leverage.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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