Florida DSCR Loans for Real Estate Investors A Debt Service Coverage Ratio loan or DSCR loan allows real-estate investors to qualify primarily using a property’s rental income rather than traditional personal-income documentation.

 DSCR loans are generally designed for non-owner-occupied investment properties. They may be used to purchase, refinance or access equity from eligible long-term rentals, Airbnb properties and other short-term rentals throughout Florida.

 How Does a DSCR Loan Work?

 The lender compares the property’s qualifying monthly rental income with its proposed monthly housing expense. DSCR = Qualifying Monthly Rental Income ÷ Monthly PITIA PITIA generally includes principal, interest, property taxes, homeowners insurance and applicable association dues.

 For example, if the qualifying rent is $3,000 and the monthly PITIA is $2,500, the property has a DSCR of 1.20. This means the qualifying rental income is 20% higher than the housing expense. A DSCR of 1.00 means the income and housing expense are equal. Some programs may allow a DSCR below 1.00, but additional restrictions or pricing adjustments may apply.

 Benefits of a DSCR Loan Depending on the lender and program, potential benefits may include: Qualification without traditional W-2 or tax-return income Purchase, rate-and-term refinance and cash-out options Financing for long-term and short-term rentals Closing in an eligible LLC or business entity Fixed-rate and interest-only options No conventional limit on the number of financed properties

DSCR financing may be suitable for investors purchasing a new rental, refinancing an existing investment property or accessing equity to expand a portfolio.

Opportunity Mortgage Group works with multiple wholesale lenders to compare available DSCR programs based on the property, rental income and investor’s objectives.

Ready to discuss your investment property? Contact OMG for a personalized DSCR loan review.