Loan programs · Florida, Ohio & Texas
Qualify on the property, not the paystub
Available in Fort Myers, Cape Coral, Naples and across Florida · Dallas, Fort Worth, Houston, Austin, El Paso and across Texas · Columbus, Cleveland, Cincinnati and across Ohio
A Debt Service Coverage Ratio loan qualifies an investment property on the rent it produces rather than on your personal income. No tax returns, no W-2s, no explaining to an underwriter why your business write-offs make you look poorer on paper than you are.
I started in real estate in Austin working with investors building portfolios, and I have been on the financing side of investment property ever since. DSCR is the tool I reach for when a self-employed investor or a portfolio builder hits the wall that conventional underwriting puts up.
The ratio is simple: the property’s monthly rent divided by its monthly payment including taxes, insurance and any association dues. A ratio of 1.0 means the rent covers the payment exactly. Lenders set their own minimums, and a stronger ratio earns better terms. Market rent from the appraisal counts even if the property is vacant at closing.
Expect a larger down payment than a primary home loan, typically twenty to twenty-five percent, and pricing above conventional because the lender is taking on more risk. Many DSCR loans carry a prepayment penalty for the first few years, which is fine if you plan to hold and a real cost if you plan to flip. I will tell you which lenders offer which terms.
Because this is a business purpose loan on a property you will not live in, it is underwritten differently from a consumer mortgage. That is what makes it flexible. It also means the property has to make sense on its own numbers, which for out-of-state investors buying in Florida usually comes down to insurance and taxes. I run those before we get attached to a listing.
The property is evaluated on what it earns. If the numbers work, the loan works.
No tax returns, no W-2s. For self-employed investors whose returns understate their actual capacity, this is often the only sensible path.
Investors expanding a portfolio, and self-employed buyers whose tax returns do not tell the whole story. This is an investor product and is underwritten differently from a consumer loan.
Florida rental property from Texas or Ohio, or the other way round, with one broker who is licensed in all three. See Where I Lend.
Whether this is the right program depends on your situation, the property and current guidelines, which change. That is the conversation to have before you start looking, not after you have found the house.
Good fit
Look elsewhere
I’m a broker. If your loan doesn’t fit one lender’s box, I’m not out of options. I shop it. And when it fits everywhere, they compete for it.
Questions
Debt Service Coverage Ratio: the property’s rental income divided by its full monthly payment. It is the number the lender uses instead of your personal income.
No. DSCR loans qualify on the property’s income, not yours. You will still need credit, reserves and a down payment, and the property still gets appraised.
Most DSCR lenders look for twenty to twenty-five percent down on a purchase. It varies with the property, the ratio and your credit. I compare lenders so you see the real range rather than one quote.
Often, yes. Many DSCR lenders allow the property to be vested in a limited liability company, with the members personally guaranteeing the loan. Ask me early because it affects how the application is set up.
Some lenders allow it and use short-term rental income projections, others do not. It depends on the lender, the property and local rules on short-term rentals. Tell me the plan and I will match it to the right lender.
Not a commitment to lend. All loans subject to credit approval and underwriting on a complete file. Program availability and guidelines change, so confirm current terms before relying on them. Equal Housing Opportunity.
