How Do DSCR Loans Work in Florida? The Property Qualifies, Not Your Paycheck

A DSCR loan qualifies an investment property on its rent, not on your personal income. The lender divides the monthly rent by the full monthly payment. At 1.00 or above, the rent covers the payment. No tax returns and no W-2s. In South Florida, though, insurance, taxes, and condo dues can move that ratio more than most investors expect.

I'm Reinier Cancio, a Miami loan officer who works with investors in English and Spanish. Here's how I'd run the numbers with you.

The math

DSCR stands for debt-service coverage ratio. The formula is rent divided by PITIA, which is principal, interest, taxes, insurance, and any association dues.

Illustrative numbers only, not a quote.

The rent comes from the lease or from the appraiser's estimate of market rent. Keep in mind that the ratio doesn't count vacancy, repairs, or management. A deal can qualify and still be thin on real cash flow.

What moves the ratio in South Florida

• Insurance. Wind and flood coverage can be the biggest variable in a Florida payment. Get a real quote before you go under contract.

• Taxes after the purchase. Florida generally reassesses a property after it sells, and rentals don't get the homestead exemption. The seller's tax bill may not be yours.

• Condo dues and assessments. Dues count in the payment. Special assessments from building inspections and reserve requirements can change the deal, so check the building early.

• Short-term rental rules. Many South Florida cities and condo associations restrict short-term rentals. Confirm the property can legally operate that way before you count on the income.

What else a DSCR lender looks at

The ratio is only one piece. The lender also reviews:

• Your down payment or equity, typically 20–25%

• Credit score

• Cash reserves left after closing

• Property type and condition, plus the building for condos

• Whether the rent comes from a long-term lease or short-term rental

The honest fine print

DSCR investment loans carry a prepayment penalty, with options from 1 to 5 years. If you plan to sell or refinance soon, tell me up front, because it changes which structure makes sense. This is also an investment-property loan. If you plan to live in the home, we're looking at a different program.

Straight answers

Can I close in my LLC?
Yes. Title can vest in a U.S. LLC, partnership, or corporation with a personal guarantee.

What if the rent doesn't fully cover the payment?
Often there's still a path. Under current guidelines, ratios from 0.75 to 0.99 can qualify with more equity in the deal.

Can I get a DSCR loan on my first rental?
Current guidelines allow it, with conditions, including a DSCR of 1.00 or higher and stronger credit.

Can Airbnb income count?
On top program tiers, projected short-term rental income can be used. Local rules still have to allow it.

Do foreign nationals qualify?
There are programs for foreign national investors. Send me the scenario, and I'll tell you where it stands.

Run your deal

Plug your rent, taxes, and insurance into my free DSCR calculator, then send me the scenario. I review every one personally. Call or text (305) 492-2404.

Reinier Cancio, NMLS #1615071, Loan Officer at Bold Mortgage (NMLS #386834), Miami, FL. Program guidelines change and vary by scenario. Not a loan offer or commitment to lend. Equal Housing Lender.