DSCR Loan Florida
- LTV: 80%
- Term: 30 Year
- Rate: 7.375%
- Points: 1.0%
What are DSCR Loans used for in Florida?
What are dscr loans used for in florida?
DSCR loans are a powerful financing tool for real estate investors in Florida, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In Florida, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in Florida’s high-demand vacation markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
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DSCR loans are a powerful financing tool for real estate investors in Florida, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In Florida, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in Florida’s high-demand vacation markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
Florida DSCR Loan Products
Low Rates, from 1.0% Origination for long term & short term rentals in Florida.
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Long Term Rental
DCSR Loans Florida
Rates from 6.75%
LTV Up To 80%
From 1.0% Origination Points
Minimum DSCR: 1.0
Closing Time 14 Days
Appraisal Required
Minimum Credit Score: 660
Property Condition C4 Required
Purchase, Refinance, and Cash Out Available
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Short Term Rental
DCSR Loans Florida
Rates from 6.95%
LTV Up To 80%
1-2% Origination Points
Minimum DSCR: 1.0
Closing Time 21 Days
Appraisal Required & AirDNA Check
Minimum Credit Score: 680
Property Condition C4 Required
Purchase, Refinance, Cash Out Available
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How To Determine DSCR For Florida Rental Properties?
The Debt Service Coverage Ratio (DSCR) is calculated by dividing the monthly rent of the property by the monthly loan payment (principal + Interest), taxes, insurance and association fees (PITIA).
DSCR = Rent/PITIA
The basis of a DSCR loan in Florida, is that the rent you collect from tenants leasing the property should be greater than the cost to own and operate the property.
Investment purpose rental properties with a DSCR greater than 1.0 are called “cash flowing”. You can calculate the DSCR of your rental property with our DSCR Loan Calculator.
(DSCR Evaluation)
Property Value: $474,000
Loan: $379,200
Interest Rate: 7.25%
Ammortization: 30 YR (FRM)
Monthly Rent: $3,995
P&I Payment: $2,586.81
Monthly Taxes: $400.00
Monthly Insurance: $180
Monthly HOA: $0
DSCR 1.26
Florida DScr Loan process
Ridge Street closes Florida DSCR loans in 14-21 days.
Apply Or Get Pre-Approved Online
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Receive your term sheet
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Submit Docs
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Appraisal or BPO
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Closing
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When To Use a DSCR Loan?
DSCR loans are used by investors to "hold" real estate. These loans are long term and amortizing. This allows investors to continuously gain equity in their property while generating monthly cashflow.
Investors either use DSCR loans when purchasing a property or when refinancing it. The BRRRR Investing Strategy is popular among investors in which the DSCR loan is used to "cash out" the property.
Benefits Of DSCR LoanS Compared To Other Loan Types
Other benefits of DSCR loans include:
- No income verification
- Can be used for long term and short term rentals (Financing Airbnb's for example)
- Cost Effective
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.
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Florida DSCR Loan FAQ’s
How can I Improve the DSCR of my property?
- Increase Your Down Payment. By Increasing your down payment your loan amount will go down and your DSCR will increase. If you’re struggling to improve your DSCR past 1.0, increasing your down payment is an option you may have to consider.
- Ask Your Lender About A Rate Buy Down. Some lenders, including Ridge Street, allow you to pay an additional fee at closing in exchange for a lower rate. In some cases, a rate buydown will allow you lower your DSCR without increasing your overall cash required to close.
- Push For Less Expensive Insurance. Ask your insurance broker if there is anything they can do to lower your policy fee. A lower insurance policy fee will increase your DSCR.
Could I use a DSCR loan if I have to renovate a property?
You can start by getting a short term fix and flip loan to renovate the property and then refinance the property with a DSCR loan. The strategy of buy, rehab, rent, refinance, and repeating is called The BRRRR Strategy.
Can I use a DSCR loan on a Vacation property?
Absolutely! This is one of the main use cases for a DSCR loan.
What loan amounts can I get for a DSCR loan?
Between $50K and $2M. As long as a the DSCR is greater than 1.0, Ridge Street will lend on it.
Are DSCR loans only for investment properties?
Yes. If you are buying a piece of real estate which you intend to live in, then you would not qualify for a DSCR loan.
For refinances and cash outs, 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.
This said, providing a DSCR loan on a rental property that is not rented is higher risk. We'll want to see that the market you are in is very "rentable" at the market rent for your property. We will not provide a DSCR loan on a rental property that has been listed for rent for 3 months with no bites, for example.
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How to Get A DSCR Loan In Florida with Ridge Street?
Ridge Street is the #1 DSCR Rental Property Lender in Florida. We pride ourselves on fast closings and fairly priced loans. Get approved for your next project today.
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