Investment Property Loans in Austin, Texas
Financing for rental properties, multi-family homes, and real estate portfolios in the Austin market. Conventional, DSCR, and portfolio loan options for new and experienced investors.
Financing for Austin Real Estate Investors
Austin's strong population growth, robust job market, and landlord-friendly Texas laws make it one of the top real estate investment markets in the country. Whether you are buying your first rental property or expanding a multi-property portfolio, the right financing strategy can significantly impact your returns.
Investment property loans differ from primary residence mortgages in several important ways: higher down payments, stricter reserve requirements, and slightly higher rates. However, multiple loan programs exist to fit different investor profiles — from traditional W-2 earners buying a first rental to seasoned investors qualifying on rental cash flow alone.
Why Austin for Investment Property?
Austin consistently ranks among the nation's top metros for rental demand. The University of Texas, Dell, Apple, Tesla, Samsung, and the broader tech corridor drive strong tenant demand across every price point. Neighborhoods like East Austin, South Congress, Mueller, Windsor Park, and the suburban communities of Round Rock, Cedar Park, and Pflugerville offer diverse investment opportunities from starter rentals to luxury properties.
Investment Loan Programs
Conventional Investment
Traditional financing for 1-4 unit investment properties. 15-25% down, competitive rates, and up to 10 financed properties. Uses personal income, tax returns, and 75% of rental income to qualify.
DSCR Loans
Qualify based on the property's rental income — not your personal income. No tax returns, no employment verification. Ideal for self-employed investors and portfolio builders. Minimum 1.0x DSCR required.
Portfolio / Bank Statement
For investors with complex income or 10+ financed properties. Portfolio lenders offer flexible underwriting with bank statements, asset depletion, or business income documentation.
Multi-Family (2-4 Units)
Finance duplexes, triplexes, and fourplexes. If you live in one unit, you can use FHA or VA financing with as little as 0-3.5% down — a powerful house-hacking strategy.
Short-Term Rental / Airbnb
Specialized DSCR programs that use projected short-term rental income (via AirDNA or comparable analysis) to qualify. Available for properties in STR-eligible Austin zones.
Jumbo Investment
For high-value rental properties above $832,750. Jumbo investment loans typically require 25-30% down and 12-18 months of reserves.
Investment Property Loan Requirements
Down Payment
- Single-family rental: 15-20% down (conventional) or 20-25% (DSCR)
- 2-4 unit property: 20-25% down
- House hack (owner-occupied multi-family): 0-3.5% down with FHA/VA
Credit Score
Conventional investment loans require 680+ (best rates at 740+). DSCR programs typically require 660-700+. Portfolio lenders may work with scores as low as 620.
Reserves
Expect to show 6 months of mortgage payments (PITIA) in liquid reserves for each financed property. For investors with 5+ properties, 6-12 months of total reserves across all properties is common.
Debt-to-Income (Conventional)
Standard DTI limit of 45-50% for conventional investment loans. 75% of rental income from subject property and existing rentals counts toward qualifying income. DSCR loans bypass DTI entirely — they only evaluate the subject property's cash flow.
DSCR Calculation
Debt Service Coverage Ratio = Monthly Rental Income ÷ Monthly Mortgage Payment (PITIA). A DSCR of 1.25 means rent exceeds the payment by 25%. Most DSCR programs require a minimum ratio of 1.0-1.25. Use our mortgage calculator to estimate your payment and compare it to market rents.
Investment Property Loan FAQ
For conventional financing, expect 15-25% down depending on property type. Single-family rentals need 15-20%, while 2-4 units need 20-25%. DSCR loans typically require 20-25% down. House-hacking with FHA or VA can reduce this to 0-3.5%.
A DSCR loan qualifies you based on the property's rental income rather than personal income. If rent covers at least 1.0-1.25x the mortgage payment (PITIA), you qualify without tax returns, pay stubs, or employment verification. Ideal for self-employed investors and portfolio builders.
Yes. Conventional loans use 75% of documented rental income to offset the mortgage. DSCR loans use the property's market rent (per appraisal) as the primary qualifier. Short-term rental income from Airbnb can also be used with some programs.
Investment rates are typically 0.25-0.75% above primary residence rates. DSCR rates may be 0.5-1.0% higher than conventional but offer easier qualification. Your rate depends on credit score, down payment, property type, and program. Contact us for a personalized quote.
Yes. DSCR loans can use projected STR income from AirDNA analysis. Conventional loans treat it as a standard investment property. Note that Austin has specific short-term rental licensing requirements — verify STR eligibility before purchasing.
Explore Other Loan Programs
Helpful articles: Austin Housing Market 2025 · How Much House Can I Afford? · Closing Costs in Texas
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