Florida DSCR HELOC | Access Rental Property Equity Without Refinancing Your First Mortgage
Who offers DSCR HELOCs in Florida?
I do. I'm Travis Penny, Senior Mortgage Broker, NMLS 1649161, with Vision Mortgage (NMLS 1286953). I arrange DSCR HELOCs on Florida rental properties. The line sits in second position behind the first mortgage you already have, so you keep that loan and its terms. It qualifies on the property's rental cash flow, not your personal income. This program is for investment and business purpose only. It is not for a home you live in. DSCR is available in 38 states, and Florida is one of them.
Florida DSCR HELOC guidelines
These are the guidelines for the second-lien DSCR HELOC I arrange on Florida rentals. Every loan is subject to credit, appraisal and underwriting approval, and guidelines can change.
| Requirement | Guideline |
|---|---|
| Property use | Investment and business purpose only |
| Lien position | Second lien behind your existing first mortgage |
| Minimum credit score | 720 |
| Maximum combined loan-to-value (CLTV) | 70% |
| Line amount | $50,000 to $500,000 |
| Minimum DSCR | 1.10 |
| Draw period | 5 years, interest only |
| Repayment period | 25-year amortization after the draw (30-year maturity) |
| Rate type | Variable, tied to the Prime Rate, with a rate floor |
| Initial draw at closing | At least 80% of the line, $50,000 minimum |
| Additional draws | Allowed during the 5-year draw period, $5,000 minimum each |
| Ownership seasoning | 6 months (bought or refinanced within the last 6 months is ineligible) |
| Personal income documents | Not required; qualifies on the property's cash flow |
| Cash reserves | No minimum |
| Vesting | Your own name or an LLC (LLC vesting is for investment property only) |
| Eligible properties | Single family, PUD, townhome, 2 to 4 units, condo |
| Vacancy | No more than 1 vacant unit on 2 to 4 unit properties |
| Acreage | 10 acres maximum |
| Lease | Required on every property |
| Occupancy | Investment property only, not owner-occupied |
| Not eligible | Leasehold properties, age-restricted (55+) communities, modular homes, log homes, condotels, and properties listed for sale in the last 2 months |
What these numbers mean on a Florida rental
70% CLTV. Your first mortgage plus the new line can't be more than 70% of the appraised value. Illustrative math only, not an offer or approval: on a rental worth $400,000, 70% is $280,000 of total debt. If you owe $150,000, the most the line could be is $130,000, before credit, rent and underwriting are applied.
1.10 DSCR. The monthly rent has to cover the property's housing costs, including the first mortgage, the new line, taxes, insurance and any HOA dues, with about 10% to spare. The line is qualified on a fully amortizing payment on the full line amount at a rate above the starting rate, not on the interest-only payment, so the qualifying payment is higher than what you'd actually pay during the draw period. Florida insurance and condo dues move this number more than anything else, so get a current insurance quote before you count on a line size.
80% initial draw. This is not a line you open and leave at zero. At least 80% of it (and at least $50,000) comes out at closing. During the 5-year draw period you can take additional draws of $5,000 or more. It fits an investor who has a use for the money now, like a down payment on the next rental, a renovation or paying off higher-cost debt.
Six months of ownership. If you bought or refinanced the property within the last six months, it isn't eligible yet.
Lease required. Every property needs a lease. This is for investment property only, not a home you occupy. On 2 to 4 units, no more than one unit can be vacant.
DSCR HELOC or cash-out DSCR refinance?
Both let you pull equity from a Florida rental. A DSCR HELOC leaves your first mortgage alone and adds a line behind it: at least 80% comes out at closing, you can draw more during the 5-year draw period, and you pay interest only during the draw before the balance amortizes over 25 years. The rate is variable. A cash-out DSCR refinance replaces your first mortgage with a new, larger one. If your current first mortgage has a rate you want to keep, the line is usually the better fit. I'll run both for you.
Florida DSCR HELOC eligibility calculator
Enter your Florida rental's value, what you owe on the first mortgage, the monthly rent and the line you'd like. The calculator shows an estimate of the largest line the equity could support. It doesn't show a payment, a rate or an approval. To check whether the rent covers the payment, use my DSCR calculator.
Estimates only. Your actual line depends on the appraisal, your credit, the rent and underwriting.
Start a Florida DSCR HELOC prequal
Send me four things and I'll tell you whether the numbers work before you pay for an appraisal:
- Property address
- Current first mortgage balance
- Monthly rent from the lease
- How much you'd like to borrow and what it's for
Start your application. You can also text me the details at (207) 615-7770.
Travis Penny, Senior Mortgage Broker, NMLS 1649161 Vision Mortgage, NMLS 1286953 352 Warren Avenue, Suite 6, Portland, ME 04103 Office and text: (207) 615-7770
Florida DSCR HELOC FAQs
Do I have to refinance my first mortgage to get a DSCR HELOC?
No. The line is recorded in second position behind your current first mortgage. Your existing loan, its rate and its payment stay the same. That matters if your first mortgage has a lower rate than you'd get on a cash-out refinance today.
How much can I borrow on a Florida rental?
Up to 70% of the appraised value, minus what you owe on the first mortgage, with lines from $50,000 to $500,000. The rent also has to support the new payment at a 1.10 DSCR, so the line can be smaller than the equity alone allows.
Why do I have to take 80% of the line at closing?
The program requires an initial draw of at least 80% of the line, and at least $50,000. It's built for investors with a plan for the money now. If you only want a standby line for emergencies, this probably isn't the right fit.
Do Florida condos qualify?
Yes, condos are eligible, along with single-family homes, PUDs, townhomes and 2 to 4 units on up to 10 acres. The association has to allow rentals, and the unit needs a lease. Condotels and age-restricted (55+) communities are not eligible. Special assessments and rising dues can push the DSCR below 1.10, so bring me the HOA budget and any assessment notices early.
Can I get a DSCR HELOC on a rental I just bought?
Not yet. If you bought or refinanced it within the last six months, it isn't eligible. Once you pass six months, you can apply. If you need cash sooner, ask me about other options.
Will you need my tax returns or W-2s?
No. The line qualifies on the property's rental cash flow, so you don't provide personal income documents. You still need a 720 or higher credit score and a lease on the property.
What happens when the draw period ends?
For the first five years you pay interest only on what you've borrowed, and you can take additional draws of $5,000 or more. After that, the balance amortizes over 25 years with principal and interest, for a 30-year maturity in total. Because the rate is variable, plan for the payment to change over time.
Can I use this on my Florida vacation home or snowbird condo?
No. The DSCR HELOC is for investment property with a lease, not a home you occupy. For a primary or second home in Florida, see my Florida HELOC page instead.
Related guides
- DSCR HELOC: how it works in all 38 DSCR states
- Florida DSCR loans
- DSCR calculator
- Florida DSCR loan requirements
- What is a DSCR HELOC?
- HELOC on investment property
Investment and business purpose loans only. All loans subject to credit, appraisal and underwriting approval. Not all applicants will qualify. Guidelines subject to change. Travis Penny, NMLS 1649161. Vision Mortgage, NMLS 1286953. Equal Housing Opportunity.