DSCR Loans for Florida Investors
Debt Service Coverage Ratio (DSCR) loans are designed for real estate investors who want to qualify based on property cash flow rather than personal income. These programs are widely used across Florida for both long-term and short-term rental properties.
DSCR financing allows investors to scale portfolios, preserve liquidity, and avoid traditional income documentation.
What Is a DSCR Loan?
A DSCR loan is an investment property mortgage that qualifies the borrower primarily based on the income generated by the property itself. Instead of reviewing tax returns or employment income, lenders evaluate whether rental income can cover the proposed mortgage payment.
DSCR loans are commonly used for single-family rentals, condos, townhomes, and small to mid-size multifamily properties throughout Florida.
Who DSCR Loans Are Best For
DSCR loans are often a strong fit for:
Real estate investors building or expanding rental portfolios
Self-employed borrowers seeking alternatives to income documentation
Investors with complex tax returns
Buyers purchasing long-term or short-term rental properties
Borrowers prioritizing scalability and flexibility
These programs are designed for investment use and are not intended for primary residences.
Down Payment Options and Mortgage Insurance
DSCR loans typically require larger down payments than owner-occupied loans, reflecting their investment-focused nature. Down payment requirements vary based on property type, credit profile, and rental income strength.
Mortgage insurance is generally not required on DSCR loans, which can simplify monthly payments and long-term cost planning.
Higher down payments and stronger property cash flow often result in more favorable pricing.
Credit, Income, and Qualification Guidelines
DSCR qualification focuses primarily on the property, not the borrower’s personal income.
Credit: Minimum credit score requirements vary by program and property type.
Income: Personal income documentation is typically not required. Rental income is used instead.
DSCR Ratio: Properties may qualify at or near break-even, depending on the program and market conditions.
Because DSCR programs vary by lender, structuring the loan correctly from the outset is critical.
DSCR Loans for Purchase and Refinance
DSCR loans may be used for:
Purchase transactions
Rate and term refinances
Cash-out refinances (subject to program guidelines)
Eligible occupancy types include long-term rentals and, in some cases, short-term rentals depending on the property location and program structure.
Seller Concessions
Seller concessions may be allowed on DSCR purchase transactions, subject to loan program limits and market conditions. When permitted, concessions can be used to offset closing costs and prepaid expenses.
Concessions must align with DSCR program guidelines and appraisal requirements.
DSCR Loans for 5–10 Unit Properties
In addition to single-family and small multifamily properties, DSCR financing may be available for 5–10 unit residential properties in Florida.
These programs are designed for investors acquiring or refinancing mid-size multifamily assets where rental income supports the loan. Qualification remains focused on property cash flow rather than personal income.
Property condition, unit mix, and rental stability play a significant role in approval.
Foreign National and ITIN DSCR Loans
DSCR loans may also be available for foreign national and ITIN borrowers investing in Florida real estate.
These programs allow non-U.S. citizens and borrowers without Social Security numbers to qualify based on property income rather than U.S. tax returns. Requirements vary depending on residency status, documentation type, and property profile.
Foreign national and ITIN DSCR loans are commonly used for Florida investment properties due to strong rental demand.
How DSCR Loans Compare to Other Programs
DSCR loans are often compared to:
Conventional investment property loans
FHA & VA 2-4 Unit owner occupied loans
Non-QM income-based programs
Portfolio financing options
All-in-One and HomeSelect investment loans
Each option serves a different investor profile, and DSCR loans are particularly attractive for income-focused strategies.
Talk With a Florida Mortgage Professional
DSCR programs vary widely by program, property type, and market conditions. A detailed review ensures the loan structure aligns with investment goals and property performance.
Speaking with a Florida mortgage professional helps determine eligibility, program fit, and next steps.