DSCR Loan Florida
What Are Florida DSCR Loans?
Florida DSCR loans are a type of non-QM (non-qualified mortgage) financing, meaning approval is based on property cash flow rather than Fannie Mae or Freddie Mac income guidelines. DSCR loan qualification is determined by whether a property’s projected rental income covers its monthly debt service obligation, including principal, interest, taxes, insurance, and applicable HOA dues. When rental income meets this requirement, DSCR loans can be approved without relying on W-2s, tax returns, or pay stubs.
In Florida, where demand remains strong for both long-term and short-term rentals, DSCR loans provide a highly scalable financing solution. Because qualification is based on property performance rather than traditional debt-to-income (DTI) limits, investors can purchase or refinance multiple properties and expand their portfolios beyond the constraints of conventional financing.
How Florida Investors Use DSCR Loans
DSCR loans are commonly used for:
- Long-term rental properties in Miami, Tampa, Orlando, Jacksonville and suburban markets across Florida.
- Airbnb properties near sports venues, hospitals, travel corridors, and event-driven markets, financed through Airbnb loans, with the DSCR Loan for Airbnb as the primary structure.
- Refinancing BRRRR projects, where investors purchase, renovate, rent, and then cash out refinance their properties when executing the BRRRR investing strategy.
- Portfolio expansion for investors scaling across multiple properties without personal debt-to-income (DTI) constraints.
Funded Florida DSCR Loan Example
This 4-plex in Panama City Beach, FL was funded by Ridge Street with an 80% LTV DSCR loan. The property was purchased to be held as a short term rental by a real estate investor looking to qualify using the projected cashflow of the property.
- Rate: 7.25%
- 30 YR (FRM)
- Points: 0%
- 25 Days to Close
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Florida DSCR LoanS Rates & Terms
Long Term Rental DSCR Loans Florida
Interest Rates from 6.0% to 7.99%
Origination Fee from 0%
Up to 80% LTV for Purchases
Up to 75% LTV for Cash Out Refinances
DSCR > 1.0
Loan Size: $55,000 to $2,000,000
Closing in as little as 21 days
Credit Score of 660+ Required
No Experience Required
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Short Term Rental DSCR Loans Florida
Interest Rates from 6.25% to 7.99%
Origination Fee from 0%
Up to 80% TV for Purchases
Up to 75% LTV for Cash Out Refinances
DSCR > 1.0
Loan Size: $125,000 to $2,000,000
Closing in as little as 21 days
Credit Score of 700+ Required
Borrower Required to have 1 Personal Mortgage OR 1 Other Rental Property
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5-10 Unit Multifamily DSCR Loans Florida
Interest Rates from 7.0% to 8.25%
Origination Fee from 1.0%
Up to 75% LTV for Purchases
Up to 70% LTV for Cash Out Refinances
DSCR > 1.15
Loan Size: $350,000 - $2,500,000
Closing in as little as 30 days
Credit Score of 700+ Required
Borrower Required to have 1 Other 5 Unit Multifamily OR 2 Other 2-4 Unit Multifamily OR 3 other Single Family Rentals
When To Use a Florida DSCR Loan
DSCR loans are used by investors to hold real estate long-term. There are several real estate investing scenarios that are ideal for DSCR Loans, including:
- Purchasing Turnkey Long Term Rentals
- Cash Out Refinancing in the BRRRR Investing Strategy
- Purchasing Turnkey Multifamily Properties
- Financing Short-term rentals/Airbnbs
- Cash Out refinancing to scale an investment portfolio
When Not To Use a Florida DSCR Loan?
Although DSCR loans are a popular option, they are not suitable for:
- Owner-occupied properties
- Primary residences or second homes
- Properties with insufficient rental income to cover debt service
- Short-term bridge financing for quick resale (Bridge-to-Sell)
- Value-add projects that have not yet stabilized with rental income
Benefits of Florida DSCR Loans vs. Conventional Financing
The key advantages of DSCR loans compared to conventional financing options are:
- No personal income verification
- No tax returns or W-2s
- Scalable for growing portfolios
- Less documentation than conventional loans
- Works for LTRs and STRs
- DSCR Loans do not report to personal credit
How To Get a Florida DSCR Loan
Our DSCR Loan origination process includes 5 steps with reliable funding in 21-25 days.
Apply Or Get Pre-Approved Online
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Receive Your Term Sheet
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Submit Docs & Order Appraisal
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Underwriting And Final Approval
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Closing
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How To Calculate DSCR For Florida Rental Properties
The Debt Service Coverage Ratio (DSCR) is calculated by dividing the monthly rental income of the property by the total debt service obligation.
DSCR = Rent / (PITIA)
Where PITIA includes:
- Principal
- Interest
- Taxes
- Insurance
- HOA (If applicable)
The basis of a DSCR loan in Florida is that the rent collected from leasing the property must be greater than the total operating costs.
A DSCR of 1.0 or higher means the rental income covers all expenses and the property is considered to be cash flowing.
Use our DSCR Loan Calculator to estimate your property’s DSCR and determine whether the property qualifies for a DSCR Loan.
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Florida DSCR Loan Calculation Example
Property Value: $474,000
Loan: $379,200
Interest Rate: 6.6%
Ammortization: 30 YR (FRM)
Monthly Rent: $3,250
P&I Payment: $2,421.79
Monthly Taxes: $400.00
Monthly Insurance: $180
Monthly HOA: $0
DSCR 1.08
DSCR Loan Florida Requirements
This section provides a complete checklist of the Borrower Requirements, Property Requirements, and Documents needed for a DSCR Loan in Florida.
Borrower Requirements
- Credit Score: 660+
- No Mortgage Lates in the last 24 Months
- Liquidity Requirements: Closing Costs + 6 Months PITIA
- First Time Investors Allowed
- Personal Borrower Or LLC
- US Citizen Or Permanent Resident
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Property Requirements
- Property Type: 1-4 Unit Residential or 5-10 Unit Residential
- DSCR > 1.0
- Property Must Be Rent Ready
- Vacant Properties Permitted For Both Purchases and Refinances
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Document Checklist
- Photo ID
- Bank Statement
- Entity Documents (Articles Of Formation, EIN, Operating Agreement) if closing in an LLC
- Appraisal (ordered by Ridge Street)
- Completed Loan Application
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Best Florida Rental Markets for DSCR Loan Investors
Florida offers some of the most lucrative rental markets for real estate investors, thanks to its strong population growth, thriving tourism industry, and high demand for both long-term and short-term rentals. Using DSCR loans, investors can capitalize on these opportunities by leveraging rental income to secure financing. In this guide, we highlight the and why they stand out for DSCR-funded investments. Whether you’re targeting steady cash flow or seasonal spikes, these markets offer the potential to grow your portfolio.
DSCR Loans in Orlando
Orlando averages $1,950 per month in rent across all property types (Zillow, May 2026), with vacancy projected at 4.8% by year-end 2026, the tightest reading among all major Florida markets. Orlando is a top choice for rental property investors, driven by its booming tourism industry, strong population growth, and diverse economy. With over 70 million annual visitors, short-term vacation rentals near major attractions like Disney World and Universal Studios are in high demand. Additionally, Orlando's affordable housing market and growing job opportunities make it a hotspot for long-term rentals. The city’s combination of high rental demand and competitive property prices offers excellent opportunities for DSCR-funded investments, making it a prime market for steady cash flow and portfolio growth.
DSCR Loans In Tampa
Tampa averages $2,037 per month in rent (Zillow, May 2026), with Marcus & Millichap projecting the fastest rate of rent growth the metro has produced since 2022 as new supply eases and vacancy continues tightening. Tampa is a thriving market for rental property investors, fueled by its strong job growth, rising population, and desirable coastal location. The city’s diverse economy, including finance, healthcare, and technology sectors, attracts a steady influx of residents, boosting demand for long-term rentals. Additionally, Tampa's proximity to popular beaches and cultural attractions makes it an excellent market for short-term rentals. With affordable property prices and increasing rental rates, Tampa offers real estate investors a balance of cash flow and appreciation potential, ideal for DSCR loan opportunities.
DSCR Loans In Miami
Miami averages $3,113 per month in rent across all property types (Zillow, May 2026), one of the highest averages in the state, with demand anchored by a large international renter base and persistent inbound migration to Miami-Dade. Miami is one of Florida’s hottest rental property markets, known for its vibrant culture, international appeal, and strong demand for both long-term and short-term rentals. The city attracts a diverse tenant base, from professionals working in its booming finance and tech sectors to tourists seeking luxury vacation experiences. With premium rental rates and a thriving Airbnb market, Miami offers lucrative opportunities for DSCR-funded investments. While property prices can be higher than in other Florida markets, the potential for high cash flow and appreciation makes Miami a prime destination for real estate investors.
DSCR Loans in Jacksonville
Jacksonville averages $1,594 per month in rent (Zillow, May 2026), the most affordable major Florida market by average rent, producing the most accessible DSCR ratios in the state at current acquisition prices. Jacksonville offers real estate investors a mix of affordability, steady population growth, and strong rental demand. As one of Florida’s fastest-growing cities, it benefits from a thriving job market driven by healthcare, logistics, and finance sectors. With lower property prices compared to other major Florida markets, Jacksonville provides excellent opportunities for long-term rental investments. Its growing popularity among families and professionals makes it a reliable market for steady cash flow, ideal for leveraging DSCR loans to build or expand rental property portfolios.
DSCR Loans In Fort Lauderdale
Fort Lauderdale is one of South Florida's most consistent rental markets, known for its waterfront lifestyle, Port Everglades cruise corridor, and growing concentration of financial and professional services employment. The city draws a diverse tenant base, from corporate professionals working along the Las Olas and downtown financial corridor to short-term visitors arriving through one of the busiest cruise ports in the world. Average rents reached $2,750 per month in May 2026 (Zillow), with Fort Lauderdale projecting the fifth-fastest rate of rent growth among major U.S. metros for 2026 (Marcus & Millichap). With entry prices running 15-25% below Miami and comparable South Florida rental demand, Fort Lauderdale produces more accessible DSCR ratios than its neighbor to the south, making it a practical market for investors who want South Florida exposure without South Florida price compression.
Florida DSCR Loan FAQ
Can I close a DSCR Loan in an LLC?
Yes, as long as the LLC is registered in the State of Florida, a DSCR loan can be funded in the name of your LLC.
Check out our Complete Guide To DSCR Loans for more info.
What is the minimum DSCR required in Florida?
The minimum debt service ratio required for a DSCR loan in Florida is 1.0.
For DSCR Cash Outs and Refinances, does the property have to be rented?
Properties do not need to be rented before being refinanced with a DSCR loan. Investors who fix and refinance properties intend to refinance as soon as possible after renovating a property and in some cases this means the property is refinanced before being rented.
Can I use a DSCR Loan if I have to renovate the property?
To obtain a DSCR Loan in Florida, the property must be in rentable condition. Formally, this means the property must obtain an appraised condition rating of at least C4/C6 with no deferred maintenance. If you need to renovate the property before holding it as a rental, you can use a Florida Hard Money Loan.
Do you also offer Fix and Flip Loans in Florida?
Yes, Ridge Street offers Fix and Flip loans in Florida.
What Closing Costs are involved with DSCR Loan in Florida?
Here is a breakdown of the estimated closing costs on a $300,000 DSCR loan in Florida:
- Appraisal Fee → $500 – $700
- Title Search & Title Insurance → $1,000 – $1,500
- Recording Fees & Transfer Taxes → $400 – $800
- Title Agent Fees → $750 – $1,200
- Prepaid Reserves (2 Months of PITI) → $3,000 – $4,000
- Insurance → $2,000-$3,000
What are the Pros and Cons of DSCR Loans in Florida?
Pros Of Florida DSCR Loans
- No Personal Income Verification
- No tax returns or W-2s required; approval is based on the property's DSCR.
- Can be used for single-family rentals, multifamily units, condos, and short-term rentals.
- Investors can qualify for multiple properties without debt-to-income (DTI) limitations.
- Cash out refinancing available with DSCR loans making them an ideal choice for investors using the BRRRR Investing Strategy.
Cons Of Florida DSCR Loans
- Higher Interest Rates – Typically 0.5% higher than conventional mortgages.
- Requires 20% down, while conventional loans may allow as low as 15% for investment properties.
- Prepayment Penalties – Many DSCR loans include penalties if paid off early, especially within the first 3-5 years.
For more information check out our DSCR Loan Pros and Cons comparison.
Can I get a DSCR Loan under $100,000 in FL?
Yes, our minimum loan amount is $50,000 for DSCR Loans. Note that the minimum collateral value of a property that we can finance is $75,000.
How does Florida's insurance market affect DSCR loan qualification?
Florida windstorm and flood insurance premiums are included in the PITIA calculation lenders use to determine DSCR. In coastal markets and FEMA-designated flood zones, annual premiums can add $2,000 to $5,000 or more to carrying costs, which directly reduces the ratio a property produces at a given rent level. Ridge Street Capital underwrites DSCR using actual quoted insurance figures, not estimates, so investors should obtain a coverage quote for the specific property before submitting an application.
Where can I Learn More about Real Estate Investing in FL?
One of the best ways to get started is by attending local real estate investor (REI) meetups and networking events. Connecting with experienced investors can help you learn market trends, find partners, and source deals. Here are some great Florida REI resources:
Tampa: Tampa REIA – Monthly meetups and workshops for local investors.
Miami: Miami Dade REIA – Networking and education for South Florida investors.
Fort Lauderdale: Boca Real Estate Investment Club – Events, training, and mentoring.
Jacksonville: Jax REIA – Investor networking and educational programs.
Orlando: Orlando REAI – Central Florida’s largest investor network.
For a statewide and national resource, check out BiggerPockets, where you can connect with Florida investors, access tools, and read educational articles.
Ready To Get a Florida DSCR Loan?
Whether you have a property under contract, you're looking to be pre-approved so you can find your next deal, or you'd like to speak with an expert, Ridge Street is a leading DSCR lender in Florida and can help.
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