8Twelve Mortgage US
Florida · Investor lending

Florida DSCR loans.
Where insurance decides the deal.

Florida is one of the deepest rental markets in the country and one of the hardest to underwrite, because insurance sits right inside the ratio. We price the whole PITIA - taxes at investor assessment, windstorm, flood where it applies - before you write the offer, so the DSCR you plan around is the one the lender sees.

Get my Florida DSCR quoteTalk to a broker
1.00+
Typical DSCR minimum
20-25%
Typical down payment
40+
Lender network
Who it's for

A fit if you're…

  • Buying a long-term rental in Tampa, Orlando, Jacksonville, or South Florida
  • Financing a short-term rental near the theme parks, the Gulf, or the Keys
  • Holding Florida property in an LLC for liability separation
  • Refinancing a Florida rental out of hard money into 30-year fixed debt
  • Self-employed, with Schedule E write-offs that block conventional qualification

Insurance modelled up front

Windstorm, flood, and roof age all move the ratio. We build them into the DSCR rather than discovering them at closing.

Short-term rental programs

Vacation-rental revenue is accepted by many lenders, using documented platform history or a market-rent schedule.

Non-warrantable condos

Florida's reserve and milestone-inspection rules have pushed many associations non-warrantable. Several DSCR lenders still lend, at lower leverage.

LLC closings

Title and debt in the entity with a personal guaranty, including doc stamp and intangible tax in the cash-to-close estimate.

DSCR calculator

Will the rent carry the loan?

Lender minimum used here: 1.00

Seeded with a Central Florida single-family rental: taxes at roughly 1.2% of value at investor assessment, and insurance at a Florida-realistic $4,800 a year. Try dropping insurance to a non-coastal $2,400 to see how much of the ratio that one line item controls.

$
%

Loan amount: $288,750

%
yrs
$
$
$
$
%

Most DSCR lenders use gross market rent (0%). Add a haircut to stress-test.

$

Defaults to 2% of the loan and follows it until you set a value. Drives the APR.

DSCR
1.07
Above the 1.00 minimum
APR
7.454%
Note rate 7.25% · Based on the points and fees you entered. Excludes third-party closing costs that are not finance charges.
Loan amount
$288,750
Principal & interest
$1,970 / mo
Taxes, insurance & HOA
$783 / mo
Total PITIA
$2,753 / mo
Qualifying rent
$2,950 / mo
Monthly cash flow before reserves
+$197
Max loan at 1.00 DSCR
$317,611
Terms of repayment
30 years, fixed, 360 monthly payments
Get my DSCR quoteTalk to an investor specialist

For illustration only. Not a commitment to lend, a rate lock, or an offer of credit. Rates, DSCR minimums, taxes, insurance, and rents vary by lender, property, and market. Your actual terms are determined after application and full underwriting.

Why Florida DSCR math is different

In most states, insurance is a rounding error inside PITIA. In Florida it can be the largest non-principal line on the page. Two identical rentals with the same rent, price, and rate can land on opposite sides of a 1.00 DSCR purely on the insurance quote - roof age, distance to coast, flood zone, and carrier appetite.

  • Get a bindable insurance quote during due diligence, not after the appraisal
  • Roof age drives both premium and insurability - a 15+ year roof narrows the carrier list sharply
  • Flood is a separate policy where required, and it counts inside the ratio
  • Citizens versus the private market can be a several-thousand-dollar annual swing on the same address

Florida property taxes on an investment property

Millage rates vary by county, but investor tax bills commonly work out to roughly 0.8% to 1.3% of value. The important point for a DSCR file: the homestead exemption and the Save Our Homes 3% assessment cap do not follow to an investment purchase. A property that has been owner-occupied for a decade may reassess sharply upward the year after you buy it, and the lender will underwrite the new number.

Florida markets where DSCR files concentrate

Demand shows up across quite different underwriting profiles, and the right structure differs by market.

  • Tampa, Jacksonville, Ocala, Lakeland - long-term rental cash flow, the most straightforward ratios
  • Orlando, Kissimmee, Davenport - short-term rental corridors, where documented platform revenue matters more than market rent
  • Miami, Fort Lauderdale, West Palm Beach - higher values, thinner ratios, frequent condo and non-warrantable questions
  • Panama City Beach, Destin, the Keys - strong revenue with the heaviest insurance load in the state

Florida condos and DSCR

Since the 2021 legislative changes, Florida associations must fund reserves and complete milestone structural inspections on older buildings. That has moved a meaningful share of the state's condo inventory to non-warrantable. It is not a dead end - a number of DSCR lenders will lend on non-warrantable projects, typically at 20-25% lower leverage and slightly higher cost. Pull the reserve study, the milestone status, and any special assessment history before you commit.

Costs specific to a Florida closing

Beyond standard lender and title charges, Florida levies documentary stamp tax on the promissory note and intangible tax on the mortgage. Together these are a real line in cash-to-close on an investor purchase and should be in your model from the start rather than appearing on the closing disclosure.

Things to weigh

  • An insurance quote that lands well above your estimate is the most common reason a Florida DSCR file has to be restructured. Quote it early.
  • Prior-owner tax figures are misleading on Florida investment purchases - underwrite the post-sale reassessment, not the current bill.
  • Short-term rental income is only as good as the local ordinance. Several Florida municipalities restrict or license short-term rentals; confirm before you underwrite the revenue.
  • Prepayment penalties are standard on DSCR loans. Price the buy-out if you might sell or refinance within three years.
  • Closing in an LLC does not remove your personal guaranty and is not legal or tax advice - consult your attorney and CPA.
FAQ

Questions buyers actually ask

Can I get a DSCR loan in Florida?+

Yes. 8Twelve Mortgage US Inc. arranges DSCR financing on Florida investment property, including single-family rentals, 2-4 unit properties, condos, and short-term rentals in the vacation markets.

How does Florida insurance affect my DSCR?+

Heavily. Insurance sits inside the PITIA denominator, so a windstorm or flood premium that comes in higher than projected lowers the ratio directly. On coastal and older-roof properties an insurance quote can be the single largest variable in whether a Florida DSCR file qualifies - get a bindable quote early, not at closing.

Do Florida DSCR loans work for short-term rentals?+

Many programs allow them, which matters in Orlando, Kissimmee, Davenport, Panama City Beach, and the Keys where short-term revenue can substantially exceed long-term market rent. Lenders will typically want documented platform revenue or a market-rent schedule, and some restrict specific condo-hotel projects.

Are Florida condos harder to finance with a DSCR loan?+

They can be. Florida's post-2021 structural-integrity and reserve-funding requirements have pushed a number of associations into non-warrantable status. Several DSCR lenders will still lend on non-warrantable condos, usually at lower leverage. Milestone inspection status and reserve studies are worth pulling before you go under contract.

What are typical Florida property taxes for a DSCR calculation?+

Florida property tax rates commonly land in the 0.8% to 1.3% range of assessed value depending on the county and millage. Note that the Save Our Homes assessment cap and homestead exemption do not apply to investment property, so an investor's tax bill is often materially higher than the prior owner's.

Can I close a Florida DSCR loan in an LLC?+

Yes, and it is common for Florida investors. Title and the debt vest in the entity with a personal guaranty. Florida also charges documentary stamp tax on the note and intangible tax on the mortgage, so factor those into cash-to-close.

What down payment do I need on a Florida DSCR loan?+

Typically 20-25% on a purchase and 25% or more on a cash-out refinance. In coastal markets where insurance is high, more down is often the cleanest way to lift a marginal DSCR into the qualifying band.

Price your Florida rental.

A 3 minutes application. No credit pull to start. A rate estimate from a broker shopping 40+ lenders for you.

Get my Florida DSCR quoteTalk to a broker
CallGet Started