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

By Reinier Cancio (@reiniercancio) · Published 2026-11-04

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**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._

Item

Monthly

Rent

$3,000

Principal and interest

$1,900

Property taxes

$400

Insurance

$250

**Full payment (PITIA)**

**$2,550**

**DSCR ($3,000 ÷ $2,550)**

**1.17**

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](https://reinierloans.com/dscr-loans#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._