Florida DSCR Loan Questions, Answered

A DSCR loan is a business-purpose mortgage on an investment property that qualifies on the property’s rent compared with its full monthly payment (principal, interest, taxes, insurance and association dues) instead of your personal income. In Florida, insurance and dues are often the lines that decide the ratio.

It depends on the program. A ratio of 1.00 means rent exactly covers the full payment. Many programs prefer a cushion above that, and some accept lower ratios with more equity or reserves. Run your numbers in the calculator, then we can match the result to programs.

No. Each lender program sets equity requirements based on credit, DSCR, property type, loan size and purpose. Condos and short-term rentals may need more. We do not publish a standard figure because it would mislead many borrowers.

Yes. Most DSCR programs allow closing in an LLC, typically with a personal guarantee from the members. Keep the entity name consistent across the contract, insurance and application.

Yes, with programs that accept it, if the property can legally operate as a vacation rental under state licensing, local rules and HOA documents. Lenders use booking history, a short-term rental estimate or long-term market rent, by program.

Possibly, if the parcel’s jurisdiction allows non-hosted STRs, the property holds a DBPR vacation rental license where required, and the HOA permits it. Inside Orlando city limits, home-sharing generally requires an on-site host.

Florida reassesses non-homestead property to just value on January 1 after a sale. The non-homestead annual cap then applies to non-school levies only. A homesteaded seller’s lower bill does not carry over to you.

Citizens states that as of January 1, 2027, remaining personal residential policyholders with wind coverage must carry flood insurance, with limited exemptions. Confirm your policy type and include flood costs in the DSCR.

Yes. Association dues and assessments are part of the monthly housing expense lenders compare with rent. Request the milestone report, SIRS and budget before you are under contract.

Timing varies with the appraisal, the insurance quote, condo or HOA documents and the lender’s own process, so we do not promise a timeline. Missing insurance or association paperwork is the most common Florida delay, so gather both early.

No. Business-purpose, non-owner-occupied only. Any personal use, including seasonal stays, makes it a consumer loan, and we do not arrange those.

No. Loan Daddy LLC, which operates DSCR Loans Florida, is a mortgage broker, not a lender. We arrange and shop financing from wholesale lenders; the lender you choose underwrites and funds the loan under its own guidelines.

We compare wholesale partners for each scenario, but we do not claim any lender is the cheapest or best for everyone. The right fit depends on your property, leverage and goals.

No. Pricing comes from wholesale lenders, changes often and depends on the full file, so we do not publish rates. Our calculator asks you to enter a rate from your own quote.

Yes. Two-to-four unit properties are commonly financed with DSCR loans using the combined rent of all units. Some programs also finance five-to-ten unit buildings.