DSCR loans in Florida

No state income tax, the nation's largest short-term-rental market, a deep pool of out-of-state and international buyers, and rents that broadly kept pace with prices — Florida has more DSCR-financed rentals than any other state for a reason. The loan fits how Florida investors actually operate: LLC vesting, portfolios across multiple counties, vacation rentals, and buyers whose tax returns don't tell the real story.

Everywhere else, the DSCR conversation starts with rent. In Florida it should start with insurance. Investor policies here — wind coverage included, flood added where required — commonly run double or triple what the same house costs to insure in most states, and every dollar lands inside the payment your rent has to cover.

Worked example: a $450,000 rental at 25% down and a 7.25% rate carries about $2,302 in principal and interest. Add taxes at Florida's investor reality (~1.1%, no homestead break) and a realistic $350/month insurance line, and the payment is roughly $3,065. At $3,200 rent that's a 1.04— it covers. Plug in a $150 placeholder insurance number instead and you'd think you had a 1.11 — and you'd find out at underwriting that the deal doesn't work the way you priced it. Get the real quote first; it's the most Florida piece of advice on this page.

Also budget the assessment cycle: investment property here doesn't get the homestead cap — non-homestead assessments can rise up to 10% per year, so a hot market shows up in your tax line faster than owner-occupants experience.

Orlando, the Gulf beaches, Miami, the Keys — Florida STRs are a core DSCR use case, and many programs accept short-term rental income, commonly counted near 75% of documented revenuewith a 12-month history. The underwriting isn't the only gate, though: local ordinances vary sharply— some cities restrict rental minimums or zones — so verify the property's local rules before you count the Airbnb income. Buying a condotel? Some programs allow those too; it narrows the field but doesn't close it.

Post-Surfside reforms put real teeth into Florida condo governance — structural inspections and funded reserves — and association insurance costs climbed with them. For financing, that means the building gets underwritten alongside your deal: budget, reserves, insurance, and any pending assessments. Buildings that fall outside standard criteria aren't dead ends — DSCR programs that accept non-warrantable condos exist — but know which kind of building you're buying before you write the offer.

The core requirements match the national picture — 20–25% down, credit floors around 620–640, DSCR of 1.0+ (with sub-1.0 tiers and No-Ratio options for deals with other strengths), and 3–12 months of reservesscaling with loan size. LLC vesting is standard. Foreign national programs are available — relevant in Florida's international markets — with larger down payments and reserves. The full breakdown lives on our DSCR requirements guide; the Florida twist is simply that insurance and association costs eat ratio, so the margins want checking earlier here than anywhere else.