Investment Property Loans in Florida: Your Options for 1-4 Unit Rentals

Short answer

For a 1-4 unit rental in Florida, a conventional investor loan through Fannie Mae needs at least 15% down on one unit and 25% on two to four units, per the Eligibility Matrix as of October 2026. If your tax returns do not show enough income, a DSCR loan qualifies on the rent, a bank statement loan uses deposits, and hard money covers short fix-and-flip projects. In Miami-Dade and Miami Beach, short-term rental rules can decide whether the numbers work.

Four ways to finance a rental

Most South Florida investors buying one to four units use one of four loans. The right one depends on how you show income and how long you plan to hold.

• Conventional investor loan: lowest cash needed for a long-term hold if your tax returns support the payment. Full income documentation.
• DSCR loan: qualifies on the property's rent, not your personal income. Business-purpose.
• Bank statement loan: qualifies self-employed borrowers on 12 or 24 months of deposits.
• Hard money: short-term, asset-based money for flips and heavy renovations. Business-purpose.

Many investors use two of these over time: hard money to buy and fix, then a DSCR or conventional refinance to hold.

Conventional investor loans: down payment and reserves

Fannie Mae's Eligibility Matrix (dated August 5, 2026) sets these maximums for investment property run through Desktop Underwriter, fixed or ARM, as of October 2026:

• Purchase, 1 unit: 85% LTV, so at least 15% down.
• Purchase, 2-4 units: 75% LTV, so at least 25% down.
• Limited cash-out (rate and term) refinance, 1-4 units: 75% LTV.
• Cash-out refinance: 75% LTV for 1 unit, 70% for 2-4 units.

Example: a $500,000 single-family rental needs at least $75,000 down. An $800,000 duplex needs at least $200,000 down. Loan amounts must also fit the conforming limits.

Reserves. Fannie Mae's Selling Guide requires six months of reserves for an investment property transaction in DU. If you own other financed properties, you also need reserves equal to 2% of their combined unpaid balance when you have one to four financed properties, 4% for five to six, and 6% for seven to ten. Example: two other rentals with $600,000 owed in total adds $12,000 in reserves. See reserves.

Number of properties. Through DU, a borrower can have up to 10 financed properties on a second home or investment property loan.

Lenders and mortgage insurers can add their own overlays, such as higher credit scores. Rates for investment property price higher than for a primary home and vary daily; call 305-425-1990 for today's pricing. See conventional loans.

DSCR in brief

A DSCR loan divides the property's rent by its full monthly payment (principal, interest, taxes, insurance and HOA). No tax returns, no W-2s, and the loan closes in your name or an LLC. It is a business-purpose loan, not consumer credit.

In South Florida, insurance and HOA dues are what usually break a DSCR deal, so price them before you offer. We cover the details elsewhere so this page does not repeat them:

• DSCR loan requirements in Florida: ratio, credit, reserves and Florida closing taxes.
• DSCR loans for Miami investors: a worked example with Miami-style costs.
• What is DSCR and DSCR loans.

Bank statement loans and hard money for flips

Bank statement loans fit self-employed investors whose tax returns show low income after write-offs. The lender averages 12 or 24 months of business or personal deposits instead. These are non-QM loans with their own down payment and reserve rules by lender. See bank statement loans and how the income is calculated.

Hard money is short-term, asset-based financing for buying and renovating a property to resell. Lenders focus on the purchase price, the rehab budget and the after-repair value (ARV) more than on your income. Expect higher rates and points than a long-term loan, terms measured in months, and a draw process for rehab money. It is a business-purpose loan and only makes sense with a clear exit: sale or refinance. See hard money loans and fix-and-flip loans.

Before a flip, confirm permits and any condo association approval for renovations. Delays cost interest every month.

Short-term rental rules in South Florida

If your numbers depend on Airbnb-style income, check the local rules first. As of October 2026:

Unincorporated Miami-Dade. The county defines a short-term vacation rental as a stay of less than 30 days or one calendar month, whichever is less. You must:

• Get a county Certificate of Use (CU) before listing or advertising, renewed every year, with an inspection.
• Hold a State of Florida license, register with the Florida Department of Revenue, and collect tourist taxes on rentals of six months or less.
• Have a local business tax receipt (city and county if the property is inside a municipality).
• Keep occupancy to 2 people per bedroom plus 2, with a maximum of 12.
• Notify your HOA or condo association and follow its rental rules.

Operating without a CU carries fines of $100, then $1,000, then $2,500 for repeat offenses, and unpaid fines can become a lien.

Miami Beach. The city treats any rental of less than six months and one day as a short-term rental. Short-term rentals are prohibited in all single-family homes and in many multifamily buildings in certain zoning districts. Where allowed, the owner needs a city vacation rental business tax receipt and a resort tax account, and must show both numbers in every listing. Check the city's short-term rental zoning map before you buy.

Other cities set their own rules, and many condo associations ban or limit short stays. Lenders will not count income you cannot legally earn.

Insurance and Florida closing taxes

Insurance on a Florida rental is a landlord policy that includes windstorm, plus flood insurance if the lender requires it for the flood zone. Older homes may need a 4-point inspection, and a wind mitigation inspection can lower the premium. Get a quote before you sign, because the premium goes straight into your payment and your DSCR.

Florida closing taxes on a financed purchase, per the Florida Department of Revenue and Florida Statutes, as of October 2026:

• Doc stamps on the note: $0.35 per $100 of the loan.
• Intangible tax on the mortgage: 2 mills ($0.002) per dollar of the loan.
• Doc stamps on the deed: $0.70 per $100 statewide; in Miami-Dade, $0.60 per $100 for a single-family residence and $1.05 per $100 for other property, such as a duplex or condo building.

Example: a $400,000 loan adds $1,400 in note stamps and $800 in intangible tax. Rentals do not get the homestead exemption, so budget for the full property tax bill.

How QMS compares your options

QMS Lending (NMLS #1781090) is an independent mortgage broker in Miami, FL with 100+ lenders. We price a conventional investor loan and a DSCR loan on the same property so you can compare cash to close, payment and paperwork, and we flag local rental rules before you commit. DSCR, hard money and other business-purpose loans are for investment property only. Subject to credit approval. In English or Spanish: 305-425-1990.