DSCR Loans in Florida: Financing Rental Properties in the Sunshine State

Introduction: Why Florida Investors Are Using DSCR Loans to Scale Fast

Florida is one of the hottest real estate markets in the U.S.—and not just because of the weather. With no state income tax, a booming population, and strong rental demand in cities like Tampa, Orlando, and Jacksonville, it’s no wonder investors are piling into the Sunshine State.

But traditional mortgages aren’t always the best fit—especially for self-employed investors, LLC buyers, or anyone scaling beyond 2–3 properties. That’s where DSCR loans (Debt Service Coverage Ratio loans) come in.

DSCR loans in Florida allow investors to qualify based on a property’s income—not their own. Whether you’re buying a short-term rental in Miami or a duplex in Fort Myers, this flexible financing tool is helping investors close more deals and grow their portfolios faster.

What Is a DSCR Loan? A Quick Refresher

A DSCR loan is a type of investment property mortgage that focuses on the income the property generates—not the borrower’s personal income or employment history.

• No W2s, pay stubs, or tax returns required
  
• Approval based on property cash flow (DSCR ≥ 1.0)
  
• Often closes in an LLC or business entity
  
• Unlimited properties allowed
  
• Available for short-term and long-term rentals
  

How DSCR Is Calculated:
DSCR = Monthly Rent / Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA)

If a property generates $2,500/month in rent and monthly expenses are $2,000, the DSCR is 1.25—a great number for approval.

Why Florida Is Ideal for DSCR Loans

1. High Rent Demand

Florida is one of the strongest rental markets in the U.S., driven by:

• Job and population growth
  
• Migration from high-tax states
  
• A large short-term rental tourism base
  

This makes it easier for properties to meet DSCR thresholds.

2. Investor-Friendly Laws

Florida is considered landlord-friendly with no state income tax, favorable eviction laws, and support for business entities owning rental property.

3. DSCR-Friendly Lenders Target Florida

Florida is a top focus market for DSCR lenders like Angel Oak, Lima One Capital, and New Silver due to its high deal volume and steady rental performance.

Best Florida Cities for DSCR-Backed Investment Properties

Here are five markets where DSCR loans work especially well in 2025:

Tampa

• Median home: ~$395,000
  
• Avg. rent: ~$2,400
  
• Popular for both long-term and short-term rentals
  

Orlando

• Median home: ~$390,000
  
• Avg. rent: ~$2,250
  
• Disney tourism + rising tech scene = STR & MTR potential
  

Jacksonville

• Median home: ~$330,000
  
• Avg. rent: ~$1,950
  
• Affordable with room for appreciation and strong rent coverage
  

Cape Coral / Fort Myers

• High Airbnb demand, excellent winter rental market
  
• Smaller homes can still generate solid DSCR ratios
  

Pensacola / Gulf Coast

• Lower entry prices, high cash flow potential
  
• Popular for mid-term travel nurse rentals and STRs
  

💡 Pro Tip: Many DSCR lenders now accept AirDNA data for short-term rental projections in markets like Orlando and Tampa.

Florida DSCR Loan Requirements (Typical Guidelines)

Can You Use DSCR Loans for Short-Term Rentals in Florida?

Yes! Many DSCR lenders allow you to use projected Airbnb income to qualify—especially in Florida markets with high tourism demand.

What You’ll Need:

• AirDNA or VRBO historical rental reports
  
• Proof of STR zoning compliance
  
• Property management plan or past bookings (if applicable)
  

Top STR Markets for DSCR Loans in Florida:

• Kissimmee
  
• Destin
  
• Sarasota
  
• St. Augustine
  
• Clearwater Beach
  

When to Use a DSCR Loan in Florida

• You’re self-employed or have complex income
  
• You’re buying in an LLC
  
• You’re scaling past 5+ doors
  
• You want to use rental income—not tax returns—to qualify
  
• You’re buying or refinancing a short-term rental
  

Real-World Example: Using DSCR to Scale in Tampa

Investor Profile: Carla, a part-time investor in Georgia

• Bought a duplex in Tampa for $370,000
  
• Rents totaled $2,800/month
  
• Used a DSCR loan with a 1.26 ratio and 20% down
  
• No tax returns or employment verification required
  
• Closed in 3 weeks, property titled under her LLC
  

“Without the DSCR loan, I wouldn’t have qualified due to my self-employed taxes. Now I’m cash flowing over $500/month and planning deal #2 in Fort Myers.”

Tips for Getting a DSCR Loan Approved in Florida

• Have at least 20–25% down
  
• Know your market rent (or STR projections)
  
• Keep your credit score above 700 for best terms
  
• Have 6–12 months of reserves if possible
  
• Work with a lender that understands Florida markets and STRs
  

Best DSCR Lenders in Florida (2025)

• Angel Oak Mortgage Solutions
  
• Lima One Capital
  
• Easy Street Capital
  
• New Silver
  
• Visio Lending
  
• Kiavi
  

💼 Want help finding the best lender for your Florida rental? REInvestorGuide.com is building a DSCR lender match tool—stay tuned.

Final Thoughts: Florida + DSCR = Fast Track to Portfolio Growth

If you’re investing in Florida in 2025, a DSCR loan could be the simplest, fastest way to grow your portfolio—without getting buried in paperwork or disqualified due to personal income.

Whether you’re buying in Orlando, Tampa, or the Panhandle, Florida’s strong rent demand, tax structure, and short-term rental appeal make it perfect for DSCR financing.