Loan Program
DSCR Investor Loans in Florida
A DSCR (debt service coverage ratio) loan is a Non-QM investment property loan that qualifies you based on the property's rental income compared to its monthly housing costs, rather than your personal income. It's designed for investors buying or refinancing rentals and typically requires a larger down payment and reserves.
Last updated October 7, 2026
DSCR requirements
| Property use | Investment property only |
|---|---|
| Qualifying | Rental income vs. principal, interest, taxes, insurance, and HOA |
| Down payment | Commonly 20%–25% or more |
| Reserves | Several months of payments typically required |
| Income documentation | Personal income generally not used |
| Entity vesting | Many programs allow LLC ownership |
Florida-specific considerations
Florida's strong rental demand makes DSCR loans popular for long-term rentals and, where permitted, short-term rentals near Orlando's theme parks and coastal areas. Short-term rental rules vary widely by city, county, and HOA, so verifying what's allowed before purchase is essential.
Insurance is often the biggest variable in a Florida rental's cash flow. Windstorm, flood, and landlord coverage can significantly change the ratio, so getting insurance quotes early gives a more accurate picture of qualification.
Who a DSCR loan is for
- Real estate investors building a rental portfolio
- Self-employed investors with complex tax returns
- Buyers vesting in an LLC
- Investors refinancing rentals to pull out equity
Step-by-step process
- 01
Deal review
Estimate rent, taxes, insurance, and HOA dues.
- 02
Pre-qualification
Review credit, reserves, and down payment.
- 03
Appraisal with rent schedule
The appraiser estimates market rent.
- 04
Underwriting
Confirm the ratio and entity documents.
- 05
Closing
Close in your name or your LLC's.
Related programs
Related guides
DSCR loan FAQs
What is a good DSCR ratio?
A ratio of 1.0 means rent equals the monthly housing payment. Many programs prefer 1.0 or higher, and some allow lower ratios with larger down payments or stronger credit. Requirements vary by program.
Do I need tax returns for a DSCR loan?
Generally no. DSCR loans qualify based on the property's rental income rather than your personal income, though credit, assets, and reserves are reviewed.
Can I use a DSCR loan for a short-term rental in Florida?
Some programs allow short-term rental income, often using market data or rental history. You'll need to confirm local ordinances and HOA rules permit short-term rentals.
Can I close in an LLC?
Many DSCR programs allow vesting in an LLC with a personal guarantee. Entity documents are reviewed during underwriting.
How much do I need down?
Down payments of 20% to 25% or more are common, depending on credit, property type, and the ratio.
Can I refinance a rental with a DSCR loan?
Yes. DSCR loans can be used for rate-and-term or cash-out refinances on investment properties, subject to program limits.
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Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property eligibility. Program availability, terms, and guidelines may change without notice. Information is for educational purposes only.