Capital Kings LLC

DSCR Loans in Houston, TX.

Thirty-year rental loans for Houston investors, qualified on what the house rents for. In Houston the rent has to carry two heavy lines besides the mortgage, the tax bill and the wind and hail premium, so we underwrite with both from the first quote.

Get a DSCR term sheet →Run your numbers

Prefer to talk it through? Call or text Micah at (281) 636-5682.

Reviewed by Micah Foster, Founder & CEO · October 2026

Worked example, October 2026Alief, $197,000 house, 745 credit

Rent$1,900

Full payment$1,742

Principal + interest $1,071 Taxes $349 Insurance $322

DSCR1.09x

Rate7.21%

Cash to close$52,937

Price my Houston rental →

In short Terms as of October 2026

Houston DSCR loans are 30-year fixed rental loans qualified on the property’s rent, not your income. Rates start at 6.69% (760+ credit, 70% LTV, 5-year prepay), purchases go to 80% LTV at 700+ credit, the credit floor is 660, and the rent has to cover the full payment at 1.00 or better. On a $197,000 Houston house renting for $1,900, with Houston taxes at 2.13% of value, the ratio is 1.09 and cash to close is $52,937.

Capital Kings LLC is a broker, not a lender: we shop each Houston rental across 400+ lenders and send the term sheet with every fee on it.

The terms

Houston DSCR terms, as of October 2026

Rate	From 6.69%, 30-year fixed760+ credit at 70% LTV with a 5-year prepay. 7.46% at 700 to 719 credit and 80% LTV.
Loan to value	Up to 80% on a purchase75% on a cash-out refinance, 700+ credit
Minimum credit	66075% LTV at 680 to 699, 65% at 660 to 679
Minimum DSCR	1.00Rent divided by principal, interest, taxes, insurance and HOA
Origination	None lender originationLender fees about $2,295 (underwriting, legal, setup)
Broker fee	1%, $2,000 minimumThe only money Capital Kings earns, its own line on the term sheet
Reserves	3 months of the payment on a purchase6 months on a refinance
Minimum loan	$100,000
Close time	21-30 daysAppraisal with a rent schedule, entity docs and an insurance binder
Experience	None requiredA first rental prices the same as a tenth

Houston DSCR rates by credit, as of October 2026

Credit	Purchase LTV	Purchase rate	Cash-out LTV	Cash-out rate
760+	80%	7.05%	75%	7.12%
740 to 759	80%	7.21%	75%	7.28%
720 to 739	80%	7.34%	75%	7.41%
700 to 719	80%	7.46%	75%	7.53%
680 to 699	75%	Priced per file	70%	Priced per file
660 to 679	65%	Priced per file	60%	Priced per file

Single family, rate at the maximum LTV, 5-year prepay. Add 0.26% for 2-4 units. We price every file against the whole network before you sign.

Worked example

One Houston rental, priced the way the application prices it

A 3-bedroom house in Alief (77072) valued at Zillow’s typical home value for the ZIP and rented at Zillow’s average for 3-bedroom houses there, 745 credit, bought at the 80% cap. Taxes and insurance are the Houston figures below, not a guess.

Does it cover? 1.09x

Loan$157,60080% of $197,000 at 7.21%

Principal and interest$1,07130-year fixed

Property taxes$3492.13% of value, $4,187 a year

Insurance$322$3,869 a year

Full payment$1,742$1,900 rent ÷ $1,742 = 1.09 DSCR, $158 a month left before vacancy and repairs

Rent$1,900
Zillow’s average rent for 3-bedroom houses in 77072, against a 77072 home value index of $196,998. Zillow rental market trends, 3-bed houses, Alief 77072, Oct 18, 2026.
Property tax2.13%
2025 rates inside the City of Houston and Houston ISD: Harris County, Flood Control, Port, Hospital District, Department of Education, the City, HISD and Houston City College, 2.12522 per $100. Harris County Tax Office, 2025 tax rates, Oct 19, 2026.
Insurance$3,869 a year
NerdWallet’s Houston average of $7,855 a year for $400K of dwelling coverage, scaled to this house. NerdWallet, average homeowners insurance cost by city, May 6, 2026. An owner-occupant average; a landlord policy can price differently, so get a quote.

The term sheet

Every fee, and who gets paid

The term sheet the application builds for this house: $39,400 down, every closing fee, and who each dollar goes to.

Cash to close$52,937

Proof of funds to show$58,163

Where the $52,937 goes

Down paymentEquity$39,400
Appraisal feeAppraiser$550
Prepaid interestLender$467
Lender fees, underwriting and legalLender$2,295
Broker feeBroker$2,000
Closing / titleTitle co$3,309
Property insurance, first yearInsurer$3,869
Escrow setup, 3 months of taxesLender$1,047

Proof of funds adds $5,226 of reserves, 3 months of the $1,742 payment, that stay in your account.

Sample sheet, fictional borrower, same engine that builds yours. Yours takes about two minutes and doesn’t pull your credit.

Run the numbers

Price your Houston rental

Purchase price or valueMonthly rentCredit scorePurposeUnitsAnnual taxes (blank = 2.13%)

Enter your numbers to see the rate, the loan size and the ratio.

Get the real term sheet →Same numbers as the application. No credit pull, nothing saved.

Houston notes

What moves the ratio in Houston

Southwest and north Houston ZIPs like Alief and Acres Homes are where a 3-bedroom house still rents for close to 1% of its value a month, so the ratio clears at full leverage. Closer in, values outrun rents and the rent sets a smaller loan.

Taxes

Inside the city and HISD the combined 2025 rate is about 2.13% of value, with no homestead cap for an investor. HISD has adopted a lower rate for 2026, which helps, but budget on the full appraised value, not the seller’s bill.

Insurance

NerdWallet’s Houston average is one of the highest in the country, and a landlord policy prices on top of that with wind, hail and any flood exposure. Get a real quote early; it moves the ratio more here than the rate does.

Rent

The appraiser’s rent schedule sets the rent the lender uses, so compare your number with the 3-bedroom house comps in the same ZIP. A signed lease above market helps only if the appraiser supports it.

Where it pencils

Alief, Acres Homes, Greenspoint and the East End carry the rent-to-value that clears at 80%. Spring Branch and the Heights usually need a larger down payment to cover.

DSCR loans across Texas →Hard money and flip loans in Houston →New construction loans in Houston →Every Texas program →

Local figures: Zillow rental market trends, 3-bed houses, Alief 77072, Oct 18, 2026 · Zillow home value index, Alief 77072, Sep 30, 2026 · Harris County Tax Office, 2025 tax rates, Oct 19, 2026 · NerdWallet, average homeowners insurance cost by city, May 6, 2026 · Houston ISD, tax information (2026 rate), Oct 19, 2026.

Questions

Houston DSCR FAQ

What are DSCR loan rates in Houston, TX right now?

As of October 2026, from 6.69% on a 30-year fixed for 760+ credit at 70% LTV with a 5-year prepay. At the 80% purchase cap: 7.05% at 760+, 7.21% at 740 to 759, 7.34% at 720 to 739, 7.46% at 700 to 719. Add 0.24% for a cash-out refinance and 0.26% for 2-4 units. No lender origination; lender fees about $2,295 plus our 1% broker fee ($2,000 minimum).

How much do I need to put down on a Houston DSCR loan?

At least 20% of the price at 700+ credit, 25% at 680 to 699 and 35% at 660 to 679, plus closing costs and 3 months of the payment in reserves. On the $197,000 example that is $39,400 down, $52,937 cash to close and $58,163 of proof of funds.

Does a typical Houston rental qualify for a DSCR loan?

On our example, yes: a $197,000 house in Alief renting for $1,900 carries a $157,600 loan at 7.21%. The full payment is $1,742 ($1,071 principal and interest, $349 taxes, $322 insurance), so the ratio is 1.09 and the rent clears the 1.00 minimum at the full 80% LTV.

What property tax and insurance numbers should I use in Houston?

The real ones, because both sit inside the payment the rent has to cover. We used 2.13% of value for taxes (2025 rates inside the City of Houston and Houston ISD: Harris County, Flood Control, Port, Hospital District, Department of Education, the City, HISD and Houston City College, 2.12522 per $100) and $3,869 a year for insurance (NerdWallet’s Houston average of $7,855 a year for $400K of dwelling coverage, scaled to this house). Get a landlord policy quote and the county’s tax estimate before you go under contract.

What credit score do I need for a DSCR loan in Houston?

660 or higher on the instant term sheet. Credit sets the leverage: 80% LTV at 700+, 75% at 680 to 699 and 65% at 660 to 679. Below 660, we price the file by hand across the network.

Can a first-time investor get a DSCR loan in Houston?

Yes. There is no experience requirement: the property qualifies, not your landlord history. You need 660+ credit, the down payment, 3 months of reserves and a rental whose rent covers the full payment, held in an LLC.

How fast does a DSCR loan close in Houston?

21-30 days days is typical once the appraisal with its rent schedule, the entity documents and the insurance binder are in.

Is Capital Kings a DSCR lender in Houston?

No. Capital Kings LLC is a broker. We shop your Houston rental across 400+ lenders, price it on one term sheet with every fee shown, and run the file to closing. Our 1% broker fee is the only money we earn on the loan.

Does flood zone matter on a Houston DSCR loan?

Yes. A house in a mapped flood zone needs flood insurance, and that premium goes into the payment the rent has to cover, on top of the wind and hail policy. Pull the flood zone and a quote before you go under contract.

Can I use a Houston MUD property for a DSCR loan?

Yes. Municipal utility district taxes are part of the tax bill, so the payment includes them and the ratio has to clear with them. Most MUDs sit outside the city limits, where the combined rate can run above the city figure on this page.

Who you’re working with

Founder & CEO

Micah Foster

Micah brokers DSCR, hard money and new construction loans for real estate investors across 37 states. He founded Capital Kings LLC to give investors a broker who shops the market on their behalf instead of pitching one lender product, and every term sheet he sends is itemized down to the last fee.

Send Micah your rental →

Keep reading

Before you buy the rental

Ready to price your Houston rental?

Two minutes to an instant DSCR term sheet. No credit pull, no tax returns, every fee on the page.

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