Florida DSCR Loans - Rental Property Financing
Get rental property loans in Florida based on cash flow, not personal income. Our DSCR loans are perfect for real estate investors who want to build or expand their rental portfolio without income verification hassles.
Get DSCR Loan Terms
Complete this form to receive personalized DSCR loan terms within 24 hours.
DSCR Loans: Cash Flow-Based Lending
Property Income Focus
Qualification based on rental income potential, not personal income or employment.
Portfolio Building
Perfect for investors looking to scale their rental property portfolio quickly.
Fast Processing
Streamlined underwriting process with faster approval than traditional loans.
DSCR Loan Program Details
Understanding Debt Service Coverage Ratio
The Debt Service Coverage Ratio (DSCR) is calculated by dividing the property's monthly rental income by the monthly debt service (principal, interest, taxes, insurance, and HOA):
DSCR Calculation Formula
DSCR = Monthly Rental Income ÷ Monthly Debt Service (PITIA)
PITIA = Principal + Interest + Taxes + Insurance + Association Dues
DSCR Examples:
- DSCR of 1.25: Property generates 25% more income than debt service
- DSCR of 1.0: Property income exactly covers debt service
- DSCR of 0.85: Property income covers 85% of debt service
Loan Terms and Structure
- Loan Amounts: $100,000 to $3,000,000+
- Loan-to-Value: Up to 80% LTV for qualified borrowers
- Amortization: 30-year amortization available
- Terms: Fixed rate options from 15-30 years
- Minimum DSCR: 1.0 (some programs accept 0.75)
- Interest Rates: Competitive rates based on DSCR and LTV
Eligible Property Types
- Single-family rental homes
- 2-4 unit multifamily properties
- Small apartment buildings (5-8 units)
- Condominiums and townhomes
- Manufactured homes on permanent foundations
Note: Properties must be investment properties. Owner-occupied properties are not eligible for DSCR loans.
Required Documentation
Property Documentation:
- Purchase contract or property details
- Current lease agreements (if occupied)
- Rent roll for multi-unit properties
- Property management agreements (if applicable)
- Property insurance information
Borrower Documentation:
- Completed loan application
- Asset verification (bank statements)
- Proof of down payment funds
- Real estate investment experience summary
- Personal financial statement
DSCR Loan Benefits for Florida Investors
No Income Verification
Unlike traditional rental property loans that require extensive income documentation, DSCR loans focus solely on the property's ability to generate sufficient rental income to cover the debt service.
Portfolio Growth
DSCR loans are ideal for investors looking to rapidly expand their rental portfolios. Each property is evaluated independently, allowing you to leverage the income from each property to qualify for additional loans.
Flexible Borrower Profiles
Perfect for self-employed investors, retirees, or anyone whose personal income doesn't reflect their ability to manage rental properties successfully.
Florida Rental Market Insights
Strong Rental Fundamentals
Florida's rental markets benefit from several key factors that support strong DSCR performance:
- Population Growth: Continued in-migration drives rental demand
- Job Diversity: Tourism, tech, healthcare, and finance sectors
- Limited Supply: New construction hasn't kept pace with demand
- Seasonal Demand: Winter rental premiums in many markets
- Short-Term Rental Potential: Vacation rental opportunities
Best Florida Markets for DSCR Properties
- Orlando Metro: Strong job growth and university presence
- Tampa Bay: Diverse economy and young professional influx
- South Florida: International demand and high rental rates
- Jacksonville: Affordable prices with good rental yields
- Southwest Florida: Seasonal rental premiums and retiree demand
DSCR vs. Traditional Rental Property Loans
| Feature | DSCR Loan | Traditional Loan |
|---|---|---|
| Income Verification | Not Required | Tax Returns, Pay Stubs |
| Qualification Basis | Property Cash Flow | Personal Income |
| DTI Requirements | Not Applicable | Typically 43% Max |
| Processing Time | 15-30 Days | 30-45 Days |
Maximizing Your DSCR
To improve your DSCR and qualify for better terms:
- Increase Rental Income: Market rent analysis, property improvements
- Larger Down Payment: Higher down payment reduces debt service
- Longer Amortization: 30-year terms lower monthly payments
- Property Selection: Choose properties in strong rental markets
- Value-Add Opportunities: Properties with rent increase potential
DSCR Loan FAQs
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is a rental property loan that qualifies borrowers based on the property's cash flow rather than personal income. The DSCR is calculated by dividing the property's monthly rental income by the monthly debt service.
What DSCR ratio do I need to qualify?
We typically require a minimum DSCR of 1.0, meaning the rental income covers 100% of the debt service. Some programs accept ratios as low as 0.75 for experienced investors with strong profiles.
Do I need to verify my personal income?
No, DSCR loans are based on the property's income potential, not your personal income. You don't need to provide tax returns, pay stubs, or employment verification.
Can I use projected rents for a vacant property?
Yes, for vacant properties, we can use a market rent analysis from a licensed appraiser to determine the expected rental income for DSCR calculations.
What are typical DSCR loan terms?
DSCR loans typically offer 30-year amortization with fixed or adjustable rates. Loan amounts range from $100,000 to $3,000,000+ with up to 80% LTV for qualified borrowers.
Can I finance multiple properties with DSCR loans?
Yes, DSCR loans are excellent for building rental portfolios. Each property is evaluated individually based on its own cash flow potential.
What DSCR ratio do you require?
We typically require a minimum DSCR of 1.0, though some loan products accept ratios as low as 0.75 for strong borrowers.
How do you calculate rental income?
We use current leases, rent rolls, or market rent analysis from a licensed appraiser to determine rental income for DSCR calculations.
Can I use projected rents for new properties?
Yes, for vacant properties we can use market rent analysis from a qualified appraiser to determine projected rental income.
Florida DSCR Calculators & Tools
Quick DSCR Calculator
Use our DSCR calculator to determine if a property meets our minimum requirements.
Calculate DSCRTop Florida DSCR Markets
Start Building Your Florida Rental Portfolio
DSCR loans make it easier than ever to acquire rental properties based on cash flow, not personal income. Scale your investments faster.
Not a commitment to lend. Terms subject to underwriting, market conditions, and borrower experience. All loans subject to credit approval and property evaluation.
Rates and terms vary based on loan type, property type, borrower experience, and market conditions. Contact us for current rates and terms specific to your deal.
This information is for real estate investors and is not intended for owner-occupied properties. Investment properties only.