Jordan Vreeland
Licensed Mortgage Broker · NMLS #795404
No W-2s. No tax returns. No pay stubs. If the property cash flows, you can qualify. Florida investors use DSCR loans to grow portfolios the IRS can't slow down.
How It Works
A DSCR loan is an investment property mortgage where qualification is based entirely on what the property earns. DSCR stands for Debt Service Coverage Ratio. The formula is straightforward: divide the property's gross rental income by the total monthly debt service (principal, interest, taxes, insurance, and HOA where applicable).
If that ratio is at or above what the lender requires, the deal qualifies. Your personal income, W-2 history, or tax return doesn't enter the picture. For real estate investors who show low taxable income on paper due to depreciation and write-offs, this is the product that conventional underwriting can't match.
Read the full breakdown in our DSCR loan guide for a deeper look at how lenders structure these loans and what the qualification process looks like from start to finish.
A 1.33 DSCR means rental income covers the payment by 33%. Most lenders qualify this loan with no personal income review. The property is doing the work.
The Investor Advantage
Traditional mortgage qualification relies on your personal income as shown on tax returns. For most active real estate investors, that's the wrong metric entirely.
An investor with 5 properties, solid cash flow, and a high net worth may show negative taxable income on paper. Depreciation, cost segregation, and write-offs are doing their job. Conventional lenders see a loss. DSCR lenders look at the actual rental income and ignore the paper loss.
No two years of tax returns. No explanation of write-offs. No employer verification letters. The documentation package for a DSCR loan is leaner: the lease or rent appraisal, credit report, and property details. When the numbers work, the loan moves forward without the paper chase.
Each property is evaluated on its own cash flow. As you add properties, each new one qualifies on its own merits. You're not waiting for your W-2 income to catch up with your growing portfolio. The math scales with the deals, not with your day job.
Qualification Standards
Short-term rental properties, such as Airbnb and VRBO, are treated differently depending on the lender. Some accept projected STR income based on comparable listings. Others require a 12-month operating history. If you're targeting a short-term rental in a Florida vacation market, confirm how your lender handles that income before you're under contract.
DSCR loans are investment property tools only. They're not available for primary residences or second homes. If you're buying a primary with the intent to convert later, you'll need a conventional or other product for the initial purchase.
Entity Structuring
DSCR loans allow you to take title in an LLC. This is a meaningful distinction from conventional investment property loans, where most lenders require the borrower to hold title personally. Investors building a portfolio typically want properties in a business entity for liability protection, estate planning, or tax structuring reasons.
Single-member and multi-member LLCs are both eligible on most DSCR programs. The borrower still signs personally on most loans, but title is held in the LLC. This gives you the asset protection structure without having to close conventionally and then transfer the deed, which can trigger a due-on-sale clause.
For a more detailed look at how LLCs work with investment financing, see our guide to LLC mortgage structures for real estate investors. DSCR and LLC structures often go together for investors who want both the underwriting flexibility and the entity protection.
Run your DSCR numbers before you make an offer. We'll tell you exactly what the property needs to produce to qualify and whether it clears the threshold.
Florida's rental market makes DSCR financing particularly well-suited to the state. The Orlando corridor, with its Airbnb and short-term rental demand near Disney and the theme parks, produces strong rental income numbers. Tampa Bay, Miami Beach, and the Gulf Coast all have established long-term rental demand that supports DSCR ratios well above 1.0 in most submarkets.
Jordan's team has closed DSCR loans on properties across Florida, from single-family long-term rentals to multi-unit short-term rental portfolios. Each deal starts the same way: run the DSCR math before you commit to a price.
Common Questions
A DSCR loan is an investment property mortgage where qualification is based on the rental income the property generates, not your personal income. DSCR stands for Debt Service Coverage Ratio: the ratio of rental income to the total monthly mortgage payment. No W-2s, tax returns, or pay stubs are required.
Most DSCR lenders set 1.0 as the minimum. A ratio of 1.0 means rental income exactly covers the payment. A ratio of 1.25 means income is 25% above the payment. You'll get better pricing above 1.25. Some lenders will approve below 1.0 for strong borrowers, typically at a higher rate. A ratio below 0.75 will be hard to qualify anywhere.
No. DSCR loans are specifically structured to skip personal income verification. The property's rental income does the qualifying work. This is the point of the product. If your tax returns show low income due to depreciation and write-offs, DSCR underwriting doesn't penalize you for that.
Yes. DSCR loans allow LLC title, which is one of the key advantages over conventional investment property financing. Single-member and multi-member LLCs are both eligible. You'll typically still sign personally on the loan, but title is held in the entity. This avoids the conventional transfer problem where deeding into an LLC after closing can trigger a due-on-sale clause.
Some lenders accept short-term rental income for DSCR, but treatment varies. Some use a percentage of projected STR income from comparable listings. Others require an operating history. Long-term lease income is more straightforward and more widely accepted. If you're buying a short-term rental property, ask your lender upfront how they handle that income calculation before you're under contract.
Most DSCR programs require 20–25% down. The standard for most residential investment properties is 20%. Short-term rentals and condos sometimes require 25% depending on the lender and market. Some programs offer 15% down for files with strong DSCR ratios and borrower profiles, but this is not the standard.
Individual results may vary. Closing timelines depend on factors including appraisal, title, inspection, and borrower circumstances. 14 Days To Close does not guarantee a specific closing date.
Tell us the property, the expected rent, and your purchase price. We'll calculate your DSCR ratio, tell you if you qualify, and get you moving before someone else makes an offer.