DSCR Loans in Plano, TX
Loan-size math and qualifying analysis for DSCR financing on Plano's $508k median home value. Poor fit.
Poor fit for Plano.
Plano's low rent-to-price ratio produces DSCR around 0.34 — well below the 1.10-1.25 lender threshold. Appreciation play, not a cash-flow market.
Payment on Plano's $508k median.
| Median home value (Plano) | $507,575 |
| Assumed LTV | 78% |
| Loan amount | $395,908 |
| Cash to close (down payment) | $111,667 |
| Assumed rate | 8.50% |
| Term | 30-year amortizing |
| Monthly P&I | $3,044/mo |
Does Plano pencil?
| Median monthly rent (Plano) | $1,696/mo |
| Property taxes (est. 1.1%/yr) | −$465/mo |
| Insurance (est. 0.5%/yr) | −$211/mo |
| NOI (before debt) | $1,020/mo |
| Debt service | −$3,044/mo |
| DSCR | 0.34 |
Most DSCR lenders require DSCR ≥ 1.10 to fund and ≥ 1.20-1.25 for the best pricing tier. Plano medians fall below typical lender DSCR floors — a DSCR loan will only work on properties materially below median or with above-market rent.
DSCR financing — the mechanics.
A non-QM mortgage product where the lender computes Debt Service Coverage Ratio = NOI ÷ debt service. If DSCR clears their threshold (1.10-1.25 typical), the loan funds regardless of the borrower's W-2 income, DTI, or tax returns. The property qualifies the loan.
Lender requires: 660+ FICO (most), 25% down (typical), 6 months of debt-service reserves, signed lease or projected market rent supported by Form 1007 appraiser-rent comps. Closing in 21-35 days standard.
How Texas law affects this loan.
Texas foreclosure timeline: non-judicial, ~41 days from notice to sale. See full DSCR in Texas breakdown.
Frequently asked.
What's the typical DSCR loan size for a property in Plano?
On Plano's $508k median home value, a DSCR loan at the standard 78% LTV would be approximately $396k, requiring $112k down.
What's the monthly payment on a typical DSCR loan in Plano?
Fully-amortizing 30-year payment on a $396k DSCR loan at the typical rate of 8.50% would be approximately $3k/month, excluding taxes and insurance.
Is Plano a good market for DSCR financing?
Plano's low rent-to-price ratio produces DSCR around 0.34 — well below the 1.10-1.25 lender threshold. Appreciation play, not a cash-flow market.
What credit and reserves do DSCR lenders require for Plano properties?
Lender requires: 660+ FICO (most), 25% down (typical), 6 months of debt-service reserves, signed lease or projected market rent supported by Form 1007 appraiser-rent comps. Closing in 21-35 days standard.
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