DSCR Loans In Florida
Florida DSCR Loan Program Overview
Ridge Street Capital is more than just a national lender—we're the local choice for Florida real estate investors looking for reliable funding. This section is here to give you a transparent overview of our Florida DSCR Loan Program and to help you navigate this page to find the informaition you're looking for.
Key highlights:
- Rates as low as 6.25%
- LTV Up to 80% for purchases, Up to 75% for cash outs
- 0% Origination Fee Available
- Quick Funding in as little as 21 days
- Long Term Rentals and Short Term Rentals
To quickly navigate this page, use the following links:
- Rate: 7.25%
- 30 YR (FRM)
- Origination Fee: 0%
- 25 Days to Close
What Is A DSCR Loan?
A DSCR loan is a rental property financing option that allows real estate investors to qualify based on property income instead of personal income. With DSCR loans, Ridge Street measures whether the rent covers the property’s principal, interest, taxes, and insurance payment (PITI). DSCR loans are one of the most popular loan programs for Florida real estate investors because they are highly scalable and work well with populuar investing strategies like the BRRRR Method and Buy and Hold.
How to Calculate the DSCR for Your Rental?
The equation for calculating DSCR is:
DSCR = Rent / (Principal & Interest + Taxes + Insurance)
Rent = Appraised Long Term Market Rent or Projected Short Term Market Rents from AirDNA
Principal & Interest = Monthly Mortgage Payment
Taxes = Monthly Property Taxes
Insurance = Monthly Property Insurance
Use our DSCR Calculator to check the debt service coverage ratio of your florida rental property.
DSCR Loan Down Payment Requirements?
When purchasing a property with a DSCR loan, investors are typically required to put down 20% of the purchase price. In addition to the down payment, they must cover closing costs out of pocket. Ridge Street also requires proof of reserves, six months of mortgage payments (PITI), in the investor’s bank account to meet the loan’s liquidity requirements.
See the DSCR Loan Requirements section of this page for detailed breakdown.
As an investor builds their track record, access to fiancing on larger more complex projects is provided:
- Loan amounts up to 75% of After Repair Value
- Projects with at least 20% projected ROI
- An ARV backed by credible sold comps, not inflated listings
Florida DSCR Loan V.S. Conventional Loan?
- DSCR Loans are designed for real estate investors and qualify based on the property’s rental income (Debt Service Coverage Ratio) rather than the borrower’s personal income or tax returns. They offer faster approvals and more flexibility but usually come with higher interest rates (0.5% higher) and larger down payment requirements.
- Conventional Loans rely on the borrower’s W-2 income and debt-to-income ratio. They often provide lower rates and smaller down payments, but the documentation and qualification process is stricter, making them less investor-friendly.
Long Term Rental V.S. Short Term Rentals?
Long-term rentals (LTRs) and short-term rentals (STRs) are both strong investment strategies that can be financed with DSCR loans. In Florida’s competitive markets such as Orlando, Miami, and Tampa/St. Pete it can be challenging to cash flow with traditional LTRs. In these areas, Airbnb and other STRs can be an effective way to boost rental income. That said, LTRs remain a reliable option, and DSCR loans for LTRs typically come with slightly lower rates compared to Airbnb-focused DSCR loans.
See the DSCR Loan Programs section of this page.
Florida DSCR Loan Program Details
Florida DSCR Loan Program Long Term Rental
Perfect for first-time investors or experienced investors scaling their rental portfolio.
Up to 80% LTV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.25% to 7.99%
Origination Fee from 0%
DSCR > 1.0
Loan Size: $50,000 to $2,000,000
Closing in as little as 21 days
Credit Score of 660+ Required
No Experience Required
See Our Complete Guide To DSCR Loans
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Florida DSCR Loan Program Short Term Rental
Designed for saavy investors pursuing higher rents with a short term rental strategy.
Up to 80% TV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.5% to 7.99%
Origination Fee from 0%
DSCR > 1.0
Closing in as little as 21 days
Loan Size: $125,000 to $2,000,000
Credit Score of 700+ Required
Borrower Required to have 1 Personal Mortgage OR 1 Other Rental Property
See our Airbnb Loans Guide
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Florida DSCR Loan Program 5-10 Unit Multifamily
For experienced investors only, looking to pursue larger multifamily rental property deals.
Up to 75% LTV for Purchases and Rate & Term Refinances
Up to 70% LTV for Cash Out Refinances
Interest Rates from 7.0% to 7.99%
Origination Fee from 1.0%
DSCR > 1.15
Closing in as little as 30 days
Loan Size: $350,000 - $2,500,000
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
Ready For Your Next Rental Property In Florida?
Apply NowFlorida DSCR Loan Process
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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Florida DSCR Loan Requirements
This section provides a complete checklist of the Borrower Requirements, Property Requirements, and Documents needed for a DSCR Loan in Florida with Ridge Street.
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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Client Review
Check To See What Terms You Qualify for?
See Your TermsFrequently Asked Questions
Why should we use Ridge Street for our Florida DSCR Loan?
- Investor-Focused Expertise – We specialize in DSCR loans for real estate investors in Florida, not traditional homebuyers. That means our programs are designed with rental properties and Airbnb's in mind.
- Local Market Knowledge – Florida markets like Miami, Orlando, and Tampa/St. Pete can be tough to cash flow. We understand these dynamics and structure loans that work for both long-term and short-term rental strategies.
- Speed & Certainty – In competitive Florida markets, timing matters. Our streamlined process and fast closings help you win deals before the competition.
- Direct Relationship Lending – Unlike big banks, we provide personalized service and tailored loan terms so you’re not just another file in the system.
- Competitive Rates & Terms - Ridge Street aims to be in top 10% of the DSCR loan market for low rates and fees.
Can I close a DSCR Loan in an LLC?
Yes, as long as the LLC is registered in the State of Florida, we can fund the deal in the name of your LLC.
Check out our Complete Guide To DSCR Loans.
How do I setup an LLC in Florida?
There are several steps involved with setting up an LLC in Florida. Typically, the process can take 3-5 days. We recommend Northwest Registered Agent for setting up an LLC in FL.
For DSCR Cash Outs and Refinances, does the property have to be rented?
The short answer is no. We understand that investors who fix and refinance properties intend to refinance as soon as possible after renovating a property.
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 deffered maintenance.
Do you also offer Fix and Flip Loans in Florida?
Yes, you can learn more about our FL Fix and Flip Loans here.
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?
Pros Of 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 like Airbnb.
- 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 DSCR Loans
- Higher Interest Rates – Typically 0.5% higher than conventional mortgages.
- Requires 20-25% 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 Complete Guide to DSCR Loan Pros and Cons.
Can I get a DSCR Loan under $100,000 in FL?
Yes, our mininium loan amount is $50,000 for DSCR Loans. Note that the minimum collateral value of a property that we can finance is $75,000.
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.
Review Of The Best Rental Markets In Florida For DSCR Loans
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 top rental markets in Florida 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.
Orlando
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.
Tampa
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.
Miami
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.
Jacksonville
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.
Apply For A DSCR Loan In Florida
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 your DSCR Lender.
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