🏢 The Ultimate Guide to DSCR Loans in Florida (2025)
Created by Tim Lyons - Senior Mortgage Loan Originator, Certified FHA Mortgage Professional - Licensed in Florida & Ohio | NMLS# 2182927
🏡Introduction: Why DSCR Loans Are the #1 Investor Tool in 2025
Investors in Florida are turning to DSCR (Debt Service Coverage Ratio) loans to grow their real estate portfolios. Unlike traditional loans, DSCR mortgages don’t require tax returns, W-2s, or even personal income verification. Instead, approval is based on whether the property’s rental income covers its expenses.
💡 What Is a DSCR Loan?
A DSCR loan is a mortgage designed for real estate investors. Lenders use the property’s Debt Service Coverage Ratio to decide approval, rather than the borrower’s personal income.
Formula:
DSCR = Gross Rental Income ÷ Property Expenses (PITIA)
DSCR ≥ 1.0 → Property pays for itself
DSCR < 1.0 → May require compensating factors (higher down payment, reserves, or rate)
Key Benefits of DSCR Loans
No personal income documentation required
Approval based on rental income potential
Works for short-term rentals (Airbnb, VRBO) and long-term rentals
Available for individuals or LLCs
Build unlimited investment portfolios (not capped at 10 properties like conventional)
🧠 Who Qualifies for a DSCR Loan?
Typical requirements:
Credit score 620–680+ (higher preferred)
Down payment 20–25% (sometimes 15% with strong DSCR)
Property must generate enough rental income to cover expenses
Reserves: Often 3–6 months of PITIA required
📊 DSCR Loans vs Conventional Investor Loans
Lenders generally look for:
Income Verification
DSCR: Rental income only
Conventional: Borrower’s W-2s, tax returns, and global DTI
Flexibility
DSCR: Works for LLC ownership, unlimited properties
Conventional: Capped at ~10 financed properties
Documentation
DSCR: Rent roll, lease, or market rent appraisal
Conventional: Personal income, tax returns, assets
⚖️ Common Myths About About DSCR Loans
“You need perfect credit” → False. Many lenders approve 620–640 scores.
“They only work for long-term rentals” → Short-term rental income can also qualify.
“You can only own a few properties” → DSCR loans are unlimited for investors.
🧮 Ready to Explore Your Options?
I’m Tim Lyons — I work with Florida investors daily to secure DSCR loans and scale their real estate portfolios. Let’s discuss your property goals.
📧 [email protected] | 📞 216-496-2375
✍️ Authored by Tim Lyons, NMLS# 2182927 Certified FHA Mortgage Professional. Serving Lakewood Ranch, Manatee County, and all of Florida
Want help figuring it all out? Let’s talk, no pressure, just real answers.
Contact Info
Tim Lyons
Pioneer Mortgage Funding, Inc.
Branch Manager
6901 Professional PKY E, Sarasota, Florida 34240
216-496-2375
941-390-6473
All loan approvals are conditional, not guaranteed, and subject to lender review of all information. A loan is conditionally approved when the lender has issued an approval in writing, but until all conditions are met, a loan cannot be funded. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. Pioneer Mortgage Funding, Inc is an Equal Opportunity Mortgage Broker headquartered in Tampa, Florida. This licensee is performing acts for which a mortgage broker license is required. Pioneer Mortgage Funding, Inc is licensed by the Florida Office of Financial Regulation, NMLS# 1936558. Pioneer Mortgage Funding, Inc. is approved to originate Conventional, FHA, VA, and USDA loans, and has the ability to broker such loans to Conventional, FHA, VA, and USDA approved lenders. Pioneer Mortgage Funding, Inc. is not acting on behalf of or at the direction of HUD/FHA or the VA.