DSCR loan requirements in Florida

Short answer

A DSCR loan in Florida qualifies on one number: the property's monthly rent divided by its monthly payment (principal, interest, taxes, insurance, and HOA dues). Most lenders want that ratio at 1.0 or higher, meaning the rent covers the payment; across our 100+ lenders the typical requirements as of October 2026 are 20% to 25% down, a credit score in the mid-600s or better, and 3 to 6 months of reserves, with no personal income or tax returns required. DSCR loans are business-purpose loans for investment property only, not for a home you will live in.

How the DSCR ratio is calculated

DSCR stands for debt service coverage ratio. The formula is simple:

DSCR = gross monthly rent / monthly PITIA (principal + interest + taxes + insurance + association dues).

Example: a Kendall townhouse rents for $3,200. The new loan payment is $2,150, taxes $450, insurance $300, HOA $250, for a PITIA of $3,150. DSCR = $3,200 / $3,150 = 1.02. The property covers itself, so it qualifies with most lenders.

Rent is documented by the lease in place or by the appraiser's rent schedule (Form 1007 for a single unit, 1025 for 2 to 4 units). Most lenders use the lower of the actual lease and the market rent, though some accept the lease if it is within a set percentage of market. For short-term rentals, a few lenders accept 12 months of Airbnb or VRBO statements or a third-party short-term rent projection.

Because the ratio is what qualifies you, your own debt-to-income ratio, W-2s, and tax returns are not part of the file. That is the whole appeal for investors who write off most of their income.

The requirements lenders look at

Each DSCR lender sets its own guidelines; these are the common ranges we see across our lenders as of October 2026:

• DSCR: 1.0 or higher for standard pricing. Some lenders go to 0.75 or even no ratio with a bigger down payment and a higher rate.
• Down payment: 20% to 25% on a purchase. Cash-out refinances usually cap at 70% to 75% LTV.
• Credit score: 640 is a common floor; 700-plus gets the best pricing tiers.
• Reserves: 3 to 6 months of PITIA after closing, more for multiple financed properties.
• Loan amounts: from roughly $100,000 to several million; most lenders have a minimum, so very cheap condos can be hard to finance.
• Property types: 1 to 4 units, warrantable and some non-warrantable condos, townhomes. Some lenders do 5 to 8 units or mixed-use under a small-balance commercial DSCR; see multifamily loans.
• Experience: not required by most lenders, but first-time investors may face a lower LTV or a higher DSCR minimum.
• Vesting: personal name or an LLC, usually with a personal guarantee.
• Prepayment penalty: common on DSCR loans, typically 1 to 5 years, and buying it out raises the rate. Florida permits prepayment penalties on business-purpose loans.

DSCR vs. a conventional investment loan

Fannie Mae finances 1-unit investment purchases up to 85% LTV (15% down) and cash-out refinances up to 75% LTV, but you qualify with your full tax returns and debt-to-income ratio, and the agencies cap how many financed properties you can have. Conventional pricing is usually lower than DSCR when you qualify.

Choose DSCR when your tax returns do not show enough income, when you already have several financed properties, when you want to close in an LLC, or when you want a short-term rental qualified on its actual revenue. Choose conventional when you have clean W-2 or tax-return income and only a few properties. We quote both and show you the monthly difference. See DSCR loans and conventional loans.

Florida-specific points for DSCR borrowers

• Insurance drives the ratio. In South Florida, windstorm and flood insurance are often the largest line in PITIA after the loan payment. Get insurance quotes before you go under contract, because a $200 monthly difference in insurance can move a 1.05 DSCR below 1.0.
• Taxes reset at sale. Florida reassesses property at purchase, and a non-homestead property has no Save Our Homes cap, so use the tax on your purchase price, not the seller's current bill. Lenders do the same.
• Condo buildings. Lenders still review the project. Reserves, delinquencies, structural inspections, and short-term rental rules all matter. See non-warrantable condo financing.
• Closing taxes. Documentary stamp tax of $0.35 per $100 on the note and intangible tax of 2 mills on the mortgage apply to investment loans just like owner-occupied ones.
• Business purpose. DSCR loans are for investment property only. You will sign a business-purpose affidavit, and the property cannot be your primary residence or a second home you use personally.

How to get a DSCR quote from QMS

Send us the address, purchase price or estimated value, expected rent, your credit score range, and whether you want the loan in your name or an LLC. We run the ratio with real tax and insurance estimates, pull pricing from our DSCR lenders, and show you the down payment, DSCR, and monthly payment side by side. Rates vary daily; call 305-425-1990 for today's pricing.

QMS Lending is an independent mortgage broker in Doral, FL (NMLS #1781090), founded in 2018, with access to 100+ lenders. All loans are subject to credit approval and program guidelines. Rates vary daily; call 305-425-1990 for today's pricing. Equal Housing Opportunity. DSCR loans are business-purpose loans secured by non-owner-occupied investment property.