A DSCR loan lets Florida real estate investors finance their rental property purchase without the strict requirements of a traditional qualified mortgage. And whether you’re already familiar with DSCR loans or are just hearing about them for the first time, we’ve got the quick breakdown you need of DSCR loan qualifications and how to apply for a DSCR loan in Florida. Here’s what to know.
O que é um empréstimo DSCR?
DSCR (Debt Service Coverage Ratio) loans are an alternative to standard home loans, allowing buyers (generally real estate investors) to purchase a property based on its income-generating potential instead of the borrower’s personal income.
For investors looking to expand their portfolios in the Florida real estate market, DSCR loans offer more flexibility and higher debt limits than traditional loans, though they may have higher down payment and interest rate requirements in return. Whether a DSCR loan is right for you depends on your current finances, the type of property you want to purchase, and your short- and long-term financial goals.
DSCR Loans and the Florida Real Estate Market
Florida has long been a hotspot for real estate investors. It’s still an attractive choice today, offering favorable tax policies on investment properties, a strong and steady rental demand, and plenty of continued market growth. Even better, the Florida real estate market is expected to proceed steadily ahead in 2025, with increased inventory and steady interest rates making it a worthwhile choice for all types of buyers – especially those looking for rental properties or other types of investments.
- Loan amounts up to $5,000,000 based on cash flow potential of rental property
- No income verification
- No limits on the number of properties that can be financed
- Simple application process
- Open to first-time and/or self-employed investors
- Available for short- and long-term rental properties
- Flexible rates and terms
- Unlimited cashouts
- Typically faster closings than traditional mortgages
- Interest-only loans available
- 1-4 unit properties, including warrantable and non-warrantable condos
- Foreign Nationals welcome
Current trends in the Florida real estate market – including rising property values and rental income potential, as well as growing interest from out-of-state investors – all make the Sunshine State an attractive place to apply for a DSCR loan. Contact us today for help finding the right Debt Service Coverage Ratio loan for your Florida real estate investment.
DSCR Loan Requirements in Florida
In order to qualify for a DSCR loan, borrowers must meet requirements around property income, credit score, and the ratio between property income and mortgage debt. They also must be able to put down a considerable down payment compared to low- or zero-down conventional mortgages. Fortunately, when it comes to paying interest on a DSCR loan, Florida rates tend to mirror those of conventional loans, with current 30 year fixed rates starting at 6.125%.
Key DSCR loan qualifications to be aware of include:
- Pontuação de crédito: As low as 620.
- Down Payment: You’ll need cash on hand for a down payment on a DSCR loan – usually 15% or more.
- Debt Service Coverage Ratio (DSCR): Rental income potential on the property does not necessarily need to cover debt obligations. We also have No Ratio DSCR loans available with as little as 25% down
- Property Requirements: A DSCR loan can only be applied toward an income-generating property and cannot be used for the purchase of a primary residence.
Strong Rental History: You can qualify for a DSCR loan in Florida as a first-time investor as well
Does a DSCR Loan Require Proof of Income?
No, you can qualify for a DSCR loan without proof of income. That’s because loan approval is based on the income potential of the property rather than how much you personally do (or don’t) have in the bank. It is just one of several types of non-qualified mortgages, or non-QMs. These mortgages are much more flexible with things like income verification but may require higher down payments and/or interest rates as a trade-off.
Florida DSCR Loan Application Process
Borrowers don’t need to prove income on a DSCR loan application but do need to prove that the property meets lender requirements. The best way to do this? Work with a qualified mortgage broker who can organize your supporting documents and oversee your DSCR application from start to finish.
Step 1: Assess the Property’s Potential Rental IncomeBefore you apply for a DSCR loan in Florida, make sure your preferred rental property has an income potential of 0.75 DSCR or higher. Check this blog for information on how to calculate DSCRs.
Step 2: Contact a Mortgage BrokerIt’s important to work with a broker who is familiar with DSCR loan options in Florida, including the application process and requirements for approval. The Doce Mortgage Group has years of experience in Florida DSCR loans and can help you navigate this process with ease – get in touch for your free DSCR mortgage quote.
Step 3: Gather Necessary DocumentsTypes of supporting documents include property details, existing rental agreements.
Step 4: Submit Your DSCR Application and Await ApprovalThe approval process for a DSCR loan tends to be faster than for other mortgages. So long as your application is complete and accurate, you can expect to hear back in about a few days.
Step 5: Review DSCR Loan Terms and Sign Your AgreementIf you’re happy with the loan terms, you can sign your agreement and get funding quickly – usually within 30-45 days.
Apply for a Florida DSCR Loan with The Doce Group
We work with real estate investors all over Florida to make sure they get the best possible loan type and terms. Entre em contato conosco today for your free DSCR quote and put your mark on the Florida rental market!
