DSCR Loans in Florida (2026)

A DSCR loan qualifies a Florida rental on the property’s rent, not your income: the lender divides gross monthly rent by the full payment (principal, interest, taxes, insurance and HOA) and wants at least 1.00, with 1.20 to 1.25 earning the best pricing. Typical 2026 terms are a 620 credit floor (740 for the lowest down payments), 20% to 25% down, three to six months of reserves, no tax returns, closing in an LLC allowed, and short-term rental income accepted by many lenders. Florida’s catch is the denominator: non-homestead property tax and insurance make the payment larger here, so the county table below shows what typical rent actually produces, county by county, and the down payment that gets to 1.00.

What lenders require

Requirement	Typical 2026 market terms
The ratio	Gross monthly rent divided by PITIA (principal, interest, taxes, insurance, HOA). 1.00 is the common floor; 1.20 to 1.25 earns the best pricing; some lenders go below 1.00 or offer no-ratio programs at higher rates and lower LTV
Rent used	Lease in place or the appraiser's Form 1007 market rent schedule for a one-unit property, typically the lower of the two; short-term rental income from projected market data on a purchase, or 12 months of platform payouts on a refinance
Credit	620 floor at many lenders; 740 and above unlocks the lowest down payments
Down payment	20% to 25% standard; 15% on select programs with strong credit
Reserves	Measured in months of PITIA, commonly 3 to 6, more for larger loans or multiple properties
Income documents	None. No W-2s, tax returns or DTI; the property qualifies, not the borrower
Vesting	Personal name or LLC; most lenders allow closing in an LLC, which conventional agency loans do not
Property	1 to 4 units, condos (warrantable or not, at the lender's discretion), long-term and short-term rentals, vacant at closing
Prepayment	Many DSCR loans carry a prepayment penalty for the first years; ask for the schedule and the buyout price before you lock
Loan size	From roughly $100,000 to several million

The math, worked on a real Florida county

Worked at Brevard County's typical numbers (Zillow value $344,703, rent $1,914 a month): 25% down leaves a $258,527 loan; at an illustrative 7.25% the principal and interest is $1,764, non-homestead property tax about $531 a month, insurance about $250, for PITIA of $2,545. DSCR = $1,914 / $2,545 = 0.75. That is under 1.00, which is why a bigger down payment or a higher-rent county is the fix. Change the county and the answer changes; the table below is the same math on every county.

Illustration only: rate, tax rate and insurance are placeholders; your lender’s PITIA and the appraiser’s Form 1007 rent govern.

DSCR at typical value and rent, county by county

The honest version of the Florida DSCR market: at a typical-value purchase with 25% down and today's rates, the county averages do not clear 1.00, and the spread between counties tells you where the gap is smallest. The deals that close are bought under typical value, rented above it, or carried with more equity, and the last column shows how much.

County	Typical value	Typical rent	DSCR at 25% down	Down payment for 1.00	Active listings
Hendry	$274,141	$1,989/mo	0.96	30%	43
Saint Lucie	$373,341	$2,377/mo	0.87	39%	—
Citrus	$272,870	$1,739/mo	0.84	43%	961
Highlands	$233,871	$1,513/mo	0.84	43%	280
Gadsden	$201,883	$1,325/mo	0.83	45%	79
Charlotte	$299,360	$1,863/mo	0.83	44%	2,847
Jackson	$183,076	$1,218/mo	0.83	45%	12
De Soto	$252,706	$1,600/mo	0.83	44%	—
Polk	$298,059	$1,847/mo	0.83	44%	5,679
Pasco	$331,637	$2,025/mo	0.82	44%	4,599
Broward	$425,778	$2,498/mo	0.81	45%	8,708
Indian River	$366,117	$2,156/mo	0.80	46%	browse
Putnam	$220,059	$1,363/mo	0.79	48%	413
Hernando	$310,262	$1,835/mo	0.79	48%	1,233
Escambia	$282,520	$1,678/mo	0.79	48%	570

Same illustrative assumptions as the worked example (7.25% 30-year, 1.85% non-homestead tax, $250 a month insurance), on Zillow typical value and ZORI rent per county as of 2026-09-09. Green clears 1.20, amber clears 1.00, red does not; the down-payment column is what it takes to reach 1.00 at these assumptions. Typical-value rentals are the hardest case: investors buy below the typical value and rent near it, which is why real deals pencil where the county average does not.

Why Florida DSCR is harder than the rent suggests

The ratio is rent over payment, and two Florida-specific items sit in the payment. Property tax is assessed at your purchase price with no homestead exemption, so budget the county millage on the full price, not on the seller's capped bill. Insurance depends on roof age, construction and wind zone; a 2005 roof in a coastal county can move a deal from 1.15 to 0.98 by itself. The investment property calculator uses each county's verified millage and Citizens average premium so the DSCR you see is the one the lender will compute.

Questions investors ask

What is a DSCR loan?

A rental-property mortgage qualified on the property's rent instead of your income. The lender divides gross monthly rent by the full monthly payment including taxes, insurance and HOA; at 1.00 the rent covers the payment, and most programs want at least that. No tax returns or debt-to-income ratio.

What DSCR do I need in Florida?

1.00 at the floor and 1.20 to 1.25 for the best pricing at most lenders, with sub-1.00 and no-ratio programs available at a cost. Florida's variable is the denominator: non-homestead property tax and insurance are a larger share of PITIA here than in most states, so the same rent-to-price ratio produces a lower DSCR.

How much down do I need for a DSCR loan?

20% to 25% is standard; 15% exists for borrowers with strong credit on select programs. A larger down payment is also the lever that raises the ratio, since it lowers the payment.

Can I get a DSCR loan on a Florida condo?

Yes, and it is one of the ways around a building that fails Fannie Mae's project review, since DSCR lenders set their own condo rules. Expect the association's budget, insurance and any special assessments to be reviewed, and HOA dues sit in the denominator.

Can I use short-term rental income to qualify?

Many DSCR lenders will, using projected income supported by market data or the appraisal on a purchase, and documented platform payouts on a refinance. Confirm the property's short-term rental legality first; Florida cities and counties regulate it by address.

Can I close a DSCR loan in an LLC?

Usually yes, which is a main reason investors use them; agency conventional loans require a personal name. Expect a personal guarantee.

Are DSCR rates higher than conventional?

Historically yes; the gap has narrowed and at many lenders the two now sit in a comparable range, with the ratio, credit score, LTV and the prepayment penalty you accept setting the price. A no-penalty option costs more in rate.