DSCR Loans for Florida Real Estate Investors
Qualify based on your property's rental income, not your personal tax returns.
If you are growing a rental portfolio, a DSCR loan can make financing simpler. Instead of digging through your personal income documents, this loan looks at whether the property earns enough to cover its own mortgage. It is a popular choice for investors who want to scale without the hurdles of traditional income verification.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. A DSCR loan is a type of mortgage designed for real estate investors that qualifies the borrower based on the income the property generates rather than the borrower’s personal income, W-2s, or tax returns. It is classified as a Non-QM loan, meaning it does not follow the standard qualified-mortgage income rules, which gives investors more flexibility.
How Is the DSCR Ratio Calculated?
The ratio compares the property's income to its debt payment. For rental properties, lenders generally calculate it as the property's monthly rent divided by its full monthly housing payment, which includes principal, interest, taxes, insurance, and any HOA dues.
A DSCR of 1.0 means
the property earns exactly enough rent to cover its mortgage payment.
A DSCR of 1.25 means
the property earns 25% more income than the payment, which many lenders consider a comfortable cushion.
A DSCR below 1.0 means
the property does not fully cover its payment from rent alone, though some programs still allow this with adjustments.
Example: if a property rents for $2,500 a month and the total monthly payment is $2,000, the DSCR is 1.25. That tells the lender the rental income covers the payment with room to spare.
Who Is a DSCR Loan For?
Real estate investors expanding a rental portfolio.Self-employed borrowers with complex or hard-to-document income.Investors who have hit the limit on conventionally financed properties.Buyers of long-term rentals or short-term vacation rentals in Florida's strong rental market.
What Can You Generally Expect?
Terms vary by lender and by the strength of the deal, but DSCR loans commonly involve a down payment in the range of 20% to 25% and may ask you to show several months of cash reserves. Because qualification is based on the property, the process can be smoother for investors than a traditional income-documented loan.
How It Works
Tell Us Your Goal
Tell us what you are looking for and share some basic financial details.
Get Pre-Approved
We help you get pre-approved so you know your budget and can shop with confidence.
We Handle Underwriting
Once you are under contract, we submit your file and guide it through underwriting.
Close With Confidence
We coordinate the appraisal, title, and closing so you can move into your new home.
Run your numbers first
Free calculators, dictionary, and guides.