San Antonio and Austin DSCR Loan Lender Guide (2026)

By David Ghazaryan, NMLS 1486726, iQRATE Mortgages NMLS 1862492

Updated October 28, 2026

Short answer: For a DSCR loan in San Antonio or Austin, look for a private lender that publishes Texas DSCR terms; requirements vary by lender. Approval rests on the property's rent versus the full payment, so Texas property taxes and city short-term rental rules often decide the math. iQRATE, licensed in Texas, shops 100+ lenders for each rental.

DSCR loans are business-purpose loans for non-owner-occupied investment property, not for a home you live in.

Key facts (Oct 2026)

• Texas, appraisal caps: a residence homestead's appraised value can rise no more than 10 percent a year (Tax Code 23.23), while the circuit breaker caps yearly increases at 20 percent for other real property, such as a rental, valued at $5,320,000 or less for 2026. It starts Jan. 1 of the tax year after the first year the owner owns the property on Jan. 1, ends after a sale, and Tax Code 23.231 says the section expires December 31, 2026 (Tex. Tax Code ch. 23, fetched Oct 26, 2026; Texas Comptroller, Valuing Property, fetched Oct 26, 2026).
• Texas and Travis County, protest deadline: Tax Code 41.44 sets the protest deadline at May 15 or the 30th day after the appraisal notice was delivered, whichever is later. Travis Central Appraisal District moves a May 15 that falls on a weekend to the next business day, and its 2026 informal settlement process began April 6, 2026 (Tex. Tax Code ch. 41, fetched Oct 26, 2026; Travis CAD protests, fetched Oct 26, 2026; Travis CAD 2026 notice, fetched Oct 26, 2026; Travis CAD protest deadline, fetched Oct 28, 2026).
• Bexar County, 2026 tax rates: the county's official 2026 table lists rates per $100 of value of 0.285963 for Bexar County, 0.014036 for Road and Flood, 0.276235 for the Hospital District and 0.562880 for the City of San Antonio, plus school district rates such as 0.975400 for North East ISD, 1.034900 for Northside ISD and 1.186900 for San Antonio ISD. The total depends on which taxing units cover the address (Bexar County 2026 Official Tax Rates, fetched Oct 26, 2026).
• City of Austin, short-term rentals: a residence rented for less than 30 consecutive days needs a City operating license, valid for two years. Since February 2025 a licensed STR is an accessory use in all residential zoning. One operator may run up to two STR units on a single-family site, with others at least 1,000 feet apart, and the greater of one unit or 10% of units on multi-family sites. Platform rules took effect July 1, 2026 (City of Austin STR page, fetched Oct 26, 2026).
• City of San Antonio, short-term rentals: a rental occupied for less than 30 consecutive days needs a separate STR permit per unit. Permits expire three years after issuance and do not transfer to a new owner. A Type 2 permit (not owner or operator occupied) costs $1000 versus $450 for Type 1, plus an 8% surcharge. STRs are allowed in residential zoning except C-3, L, I-1 and I-2, with blockface density limits (City of San Antonio STR Permits, fetched Oct 26, 2026; San Antonio STR application PDF, fetched Oct 26, 2026).
• Texas, hotel occupancy tax: the state tax is 6 percent of the room price (Tax Code 156.052) and applies to houses, condominiums and apartments rented as lodging. It does not apply to a guest with the right to use the room for at least 30 consecutive days (156.101), and cities may add local hotel tax. In Austin, platforms collect and remit HOT and owners file a quarterly report (Tex. Tax Code ch. 156, fetched Oct 26, 2026; Texas Comptroller, Hotel Occupancy Tax, fetched Oct 26, 2026; City of Austin, fetched Oct 26, 2026).
• Texas, security deposits: a landlord must refund a tenant's security deposit on or before the 30th day after the tenant surrenders the premises (Property Code 92.103). A landlord who keeps a deposit in bad faith is liable for $100, three times the amount wrongfully withheld and the tenant's reasonable attorney's fees (92.109) (Tex. Prop. Code ch. 92, fetched Oct 26, 2026).
• Federal business-purpose rule: Regulation Z exempts credit extended primarily for a business purpose (12 CFR 1026.3(a)). The CFPB's official interpretation treats credit to acquire, improve or maintain a non-owner-occupied rental as business purpose, unless the owner expects to occupy it for more than 14 days during the coming year (CFPB, fetched Oct 26, 2026).

DSCR loan San Antonio lender

A DSCR loan qualifies a San Antonio rental on its rent compared with the full payment (PITIA: principal, interest, taxes, insurance and any HOA dues), not on your tax returns or W-2s. In Bexar County the tax line is often the largest swing factor, because the total rate depends on the county, city, hospital district, school district and any special districts that cover the address. Pull the taxing units for the exact parcel before you write an offer.

• Long-term rentals: most DSCR lenders use a lease, an appraiser's market rent schedule, or both (varies by lender).
• Short-term rentals: a non-owner-occupied San Antonio STR needs a Type 2 permit, and permits do not transfer to a new owner, so the buyer applies again. Check zoning and blockface density before you count nightly income.
• Property taxes: budget taxes on the buyer's expected appraised value. A seller's homestead cap or circuit breaker limit does not carry over to you.

Our San Antonio mortgage broker page covers local loan programs and buyer options.

DSCR loan Austin lender

Austin DSCR files look like San Antonio files with two local differences: Travis County taxing units instead of Bexar, and the City of Austin STR license system. Austin licenses STRs for two years, treats a licensed STR as an accessory use in all residential zoning, and limits how many units one operator can run on a site. Since July 1, 2026 the city has asked platforms to remove unlicensed listings, so a lender reviewing STR income will want to see the license.

• Protest the value: Travis Central Appraisal District takes protests by May 15 or 30 days after the notice is mailed, whichever is later. A lower value lowers PITIA on a refinance.
• Local contact and transfers: if you do not live in the Austin metro area, the city requires a local contact who can respond within two hours, and STR operating licenses do not transfer, so a buyer applies for a new one.
• Entity closings: most DSCR lenders allow an LLC borrower with a personal guarantee (varies by lender).

Our Austin mortgage broker page covers local programs, and the Texas mortgage broker page covers statewide options. For more Austin detail, see Austin DSCR vs. conventional loans in high-tax areas and Austin DSCR loans for mid-term rentals.

How DSCR lenders differ on San Antonio and Austin rentals

Many DSCR lenders lend in Texas, but they do not treat every San Antonio or Austin rental the same way, and requirements vary by lender. Before you compare offers, expect these items to differ from one lender to the next:

• Minimum DSCR: some programs set a minimum ratio, some allow a ratio below 1.0, and some publish no minimum at all.
• Maximum loan-to-value: limits differ for purchases, rate-and-term refinances and cash-out refinances, and are often lower for short-term rentals.
• Minimum credit score: published credit minimums differ by lender, and some set a higher minimum for short-term rentals.
• Property types and size: some lenders stop at 1-4 units, others go higher or take mixed use, and minimum and maximum loan amounts differ.
• Short-term rental income: some lenders count nightly income with the city permit or license in hand, some use a separate short-term rental program, and some use long-term market rent only.
• State coverage and borrower type: each lender lists the states it lends in, and whether the loan must close in a business entity varies by lender.

Terms and requirements vary by lender and are subject to underwriting and approval; you will receive the lender's written terms and any required disclosures before you commit.

Texas property taxes in the DSCR math

• Homestead cap does not transfer: the 10 percent homestead cap applies only to a residence homestead. A rental is non-homestead property.
• Circuit breaker timing: the 20 percent non-homestead cap starts only on Jan. 1 of the tax year after the first year you own the property on Jan. 1, ends after a sale, and the statute says it expires December 31, 2026. A rental bought now would not reach that start date before the section expires, so plan taxes on the full appraised value, not on a capped value, unless the Legislature changes the law.
• Every taxing unit counts: in San Antonio the county, city, hospital district and school district each set a rate; Austin addresses use Travis County units. Ask the lender which tax amount it will use (varies by lender).

Short-term rentals in San Antonio and Austin

Many investors want nightly income in either city. Check three things before you count it: the city permit or license, the HOA documents if any, and the lender's short-term rental policy. Both cities define an STR as a stay of less than 30 consecutive days, and Texas hotel occupancy tax applies to houses and condos rented as lodging. If the permit, zoning or density limit does not work, plan the loan on long-term rent.

What lenders ask for on a San Antonio or Austin DSCR file

• Rent evidence: a lease, an appraiser's market rent schedule, or both; for STR income, the city permit or license and the lender's own STR rules (varies by lender).
• Tax and insurance numbers: the parcel's taxing units and a landlord insurance quote, since both are in PITIA.
• Entity documents if you close in an LLC, plus a personal guarantee on most programs (varies by lender).
• Reserves and credit: reserve and credit score requirements differ by lender.

How iQRATE handles San Antonio and Austin DSCR files

• Property first: we check the rent, the taxing units and any STR permit or license, then match lenders that publish terms for that property and lend in Texas.
• Licensed in Texas, 100+ lenders: iQRATE Mortgages is licensed in Texas and shops complex deals across 100+ lenders, but only after a full application and a complete document package, so lenders price a real file.

More on rental financing: DSCR loans, investor loans, portfolio loans and non-QM loans. Texas investors can also see Dallas, Houston and Fort Worth.

Looking at a San Antonio or Austin rental? Call iQRATE Mortgages at (702) 766-3744 or start an application, and we will review the property and match it with lenders that fit.

Frequently asked questions

Who is a DSCR loan San Antonio or Austin lender?

Private DSCR lenders that publish Texas programs and list Texas in their lending coverage. Minimum DSCR, maximum loan-to-value, credit score and short-term rental rules all differ from one lender to the next. iQRATE Mortgages is licensed in Texas and shops 100+ lenders to match each San Antonio or Austin rental. Terms vary by lender.

How do Texas property taxes affect a DSCR loan in San Antonio or Austin?

Taxes are part of the payment (PITIA) a DSCR lender divides into rent, so a higher tax bill lowers the ratio. Rates are set by every taxing unit at the address. Bexar County's 2026 table lists the City of San Antonio at 0.562880 per $100 of value, and school district rates such as 1.034900 for Northside ISD. Use the buyer's tax estimate, not the seller's bill.

Does the Texas 20 percent appraisal cap apply to a rental I buy?

Not for a rental you buy now. The circuit breaker limit for non-homestead property valued at $5,320,000 or less for 2026 starts Jan. 1 of the tax year after the first year you own the property on Jan. 1, and it ends after a sale. Tax Code 23.231 says the section expires December 31, 2026, so unless the Legislature changes the law, budget taxes on the full appraised value.

When is the property tax protest deadline in Bexar and Travis County?

Texas Tax Code 41.44 sets the deadline at May 15 or the 30th day after the appraisal notice was delivered, whichever is later. Travis Central Appraisal District says a May 15 that falls on a weekend moves to the next business day. A successful protest lowers the tax part of the payment, which helps the DSCR on a refinance.

Can I use Austin short-term rental income for a DSCR loan?

Only with a valid City of Austin operating license and a lender that accepts short-term rental income (varies by lender). Austin licenses STRs rented for less than 30 consecutive days for two years, limits one operator to two STR units on a single-family site, and has asked platforms to remove unlicensed listings since July 1, 2026. Otherwise plan the loan on long-term rent.

What permit does a San Antonio short-term rental need?

A City of San Antonio STR permit for each unit occupied for less than 30 consecutive days. A non-owner-occupied rental uses a Type 2 permit, $1000 plus an 8% surcharge. Permits last three years and do not transfer to a new owner, so a buyer applies again. Blockface density limits apply, and STRs are not allowed in C-3, L, I-1 or I-2 zoning.

What Texas landlord rules matter for a San Antonio or Austin rental?

Texas Property Code 92.103 requires refunding a tenant's security deposit on or before the 30th day after the tenant surrenders the premises, and 92.109 makes a landlord who keeps a deposit in bad faith liable for $100, three times the amount wrongfully withheld and attorney's fees. Short-term rentals also owe the 6 percent state hotel occupancy tax plus any local hotel tax.

Are DSCR loans in Texas covered by consumer mortgage rules?

Generally not. Regulation Z exempts credit extended primarily for a business purpose, and the CFPB's official interpretation treats credit to buy, improve or maintain a non-owner-occupied rental as business purpose. If you expect to live in the property more than 14 days in the coming year, it is not treated as non-owner-occupied.

Business-purpose loans for non-owner-occupied investment property only; not for owner-occupied homes. Credit extended primarily for a business purpose is exempt from Regulation Z under 12 CFR 1026.3(a). Information is educational, current as of October 28, 2026, and subject to change; it is not a commitment to lend. Terms and requirements vary by lender and borrower qualification and are subject to underwriting and approval. No interest rate, APR or payment is quoted in this post. Property tax, landlord and short-term rental rules are summarized from public agency pages; consult a CPA or attorney about tax, entity and legal questions. iQRATE Mortgages, NMLS 1862492. David Ghazaryan, NMLS 1486726. NMLS Consumer Access. Equal Housing Opportunity. We do business in accordance with the federal Fair Housing Act and the Equal Credit Opportunity Act.