DSCR Loan for Investment Property in Florida

What Is a DSCR Loan? (Investor Cash Flow Loan)

A Debt-Service Coverage Ratio (DSCR) loan—also called an Investor Cash Flow Loan—focuses on the property’s rental income, not your W‑2 or tax returns. Lenders assess the rental income versus loan expenses to qualify you.

How it works

You qualify based on the property’s projected cash flow—no proof of personal income required.

If the expected rent covers debt with some cushion (typically DSCR ≥ 1.1–1.25), you’re in.

Why DSCR Is Ideal for Homeowners With Equity

• No income verification: Great for self-employed or high-deduction earners

• Portfolio-friendly: No limit on the number of DSCR loans

• Equity leverage: Tap your current home equity via HELOC, second mortgage, or cash-out to fund down payment

🛠️ Typical DSCR Loan Terms (2025)

Why You’d Choose DSCR Over Conventional Loans

• Easier qualification: Ideal for rental-income-based investors

• Flexible refinance: Use DSCR refinance to fund future investments—no waiting like Fannie Mae

• Portfolio scalability: Continue adding properties; no 10-property limit

How to Maximize Terms With Secure The Funding

• Boost DSCR: Increase rental income or reduce expenses to qualify for better rates

• Improve credit: Scores above 740 lock in best pricing; 700s are still strong

• Optimize LTV: Use more down payment—via equity or savings—to secure lower rates

• Pick the right term: Choose fixed for stability or interest-only/ARM for cash flow flexibility

Ready to Use Equity to Start Investing?

If you own a home in Florida and are curious about using your equity to buy a second home or rental property, DSCR loans offer a smart and efficient path.

Send me a message: “I’m a homeowner looking to invest.”
Let’s explore your equity, evaluate DSCR options, and craft a custom investment strategy.