DSCR loan Florida: who does them, what it takes, and where I close

Florida and the other states on my Licensing page, 37 states total. General education, not a loan offer or a commitment to lend. I confirm current program and entity requirements for each property.

Take the documented rent and divide it by the full housing payment. That is the coverage ratio.

A ratio around 1.0 means the rent and payment are roughly equal. I review the actual figures for each file.

Rent may come from a signed lease or an appraiser's supported estimate. For a short term rental, accepted documentation depends on the program. Try the DSCR calculator as a starting point.

I also do DSCR loans on small apartment buildings with 5 to 9 units. Read how that review works on the DSCR loans overview.

Miami Dade, Broward and Palm Beach are a different rental math than the rest of the state. Entry prices run higher there, so rent coverage tends to run tighter than in inland markets. Get a real wind and flood insurance quote on the exact address before you count on a coverage ratio. A coastal quote and an inland quote for the same size home can land in very different places.

A lot of the South Florida inventory is condos, so association rental rules, building inspections, reserve studies and special assessments all matter before I can tell you what the loan looks like. See my special assessment guide and my non warrantable condo guide. Two to four unit buildings are a common long term rental play across the area as well.

Short term rental rules in South Florida are set city by city and county by county, not statewide. In the City of Miami, single family homes and duplexes in T3 and T4-R transect zones are not eligible for short term rental or lodging use, based on the ruling in City of Miami v. Airbnb (see the city's short term rental and lodging procedures). Elsewhere in the city, lodging use needs the right zoning and city approvals. Unincorporated Miami-Dade requires a county Certificate of Use that gets renewed every year (see the Miami-Dade residential short term rental page). For Broward and Palm Beach, check with the city and county before you make an offer.

Can I get a DSCR loan for a Miami rental or condo? Yes, anywhere in Miami Dade, Broward and Palm Beach. Condo approval, the insurance quote and local rental rules decide it, and I check those first.

A good DSCR broker compares programs for you. One application, and I compare several DSCR programs against your property, your entity and your rent, then tell you which one fits. Some clients go straight to a single lender, and that works fine when the file is simple. Comparing programs tends to help most when coverage is tight, the property is a condo or condotel, the rent is short term, or you're closing in an LLC. More detail in my post on how to choose a DSCR lender in Florida.

Budget from your own reassessed property tax bill after purchase, not the seller's bill. A new owner's bill can be different than what the seller was paying. Ask the county property appraiser or your CPA about your own situation before you count on a number.

Florida sets the statewide framework in Florida Statutes §509.032(7)(b): a local government generally can't prohibit vacation rentals or regulate how long or how often they're rented, but local rules adopted on or before June 1, 2011 still stand. Cities and counties can still require local registration, inspections and occupancy limits, which is why Naples, St. Petersburg and Sarasota look so different from each other. If a short term rental isn't legal at a given address, I may need to use long term rent instead, and that can change whether the numbers work. See short term rental loans for the city by city detail.

Depending on the program, I use a 12 month rental history, a projection report for a property without history, or the appraiser's long term market rent. Run the numbers on the DSCR calculator, and see short term rental loans for more on how each method works. On a 5 to 9 unit building, plan on the loan qualifying on long term rent instead, meaning signed leases or the appraiser's market rent.

Insurance sits inside the full housing payment, so a higher premium can lower the coverage ratio. Roof age, wind mitigation, and flood exposure can affect the quote. So can condo association dues and assessments.

I ask clients to get a property specific insurance quote before relying on a projected coverage ratio.

Condos can work. Look at the association's rental rules and any rental cap first, then building inspections, reserve studies and the chance of a special assessment. Condotels and non warrantable condos are program by program, not automatically excluded. See my special assessment guide and my non warrantable condo guide for how buildings get reviewed.

You don't have to live in Florida. A DSCR loan qualifies on the property, not where you live. Live in Maine and want a Florida rental? I'm licensed in both states, so one person handles it. If you invest in other states too, my licensing page lists all 37 states where I do DSCR loans.

1. Send me the address and the rent
2. Run it in the DSCR calculator
3. Check the association and local rental rules
4. Get a real insurance quote
5. Pre qualify
6. Appraisal with a rent schedule
7. Entity documents if you close in an LLC
8. Underwriting
9. Closing

The rent and full payment, including taxes, insurance, and association dues, determine whether a Florida rental meets a program's coverage requirement. Check the property and insurance quote before committing.

• Miami, Broward and Palm Beach: see the South Florida section above.
• Tampa and St. Petersburg: insurance and flood exposure vary by address. St. Petersburg limits rentals under a month, see short term rental loans.
• Orlando and Kissimmee: short term rental demand is strong. Check county rules and the HOA first.
• Jacksonville: long term rentals and small multi units. See the Jacksonville duplex DSCR example.
• Cape Coral, Fort Myers and Naples: check the flood zone and get a wind quote for the address. Naples has a 30 day minimum for single family homes, see short term rental loans.
• Sarasota: the city has a 7 night minimum stay and a registration certificate, see short term rental loans.
• Lakeland: mostly inland long term rentals.
• The Panhandle (Destin and nearby): seasonal short term rentals, check the city and county rules first.

Use the DSCR calculator to see if a deal pencils before you write the offer. Then call, text, or email me and we will structure it.