What is a DSCR loan and how does it work in Florida?

A DSCR (Debt Service Coverage Ratio) loan lets you qualify based on rental income rather than personal income or W-2s. Lenders divide the property's monthly rent by the mortgage payment (PITI). A ratio above 1.0 means rent covers the payment. Most Florida DSCR lenders require a 1.15-1.25 minimum DSCR, though some accept as low as 0.75 for strong-credit borrowers.

What credit score do I need for a DSCR loan in Florida?

Most DSCR lenders in Florida require a 680+ credit score. Some programs accept 640+ with a higher down payment (25-30%). Above 720, you'll qualify for the best rates. DSCR loans are available to LLCs and foreign nationals in many cases, which conventional loans don't allow.

What is the minimum down payment for a DSCR loan in Miami?

DSCR loans in Miami typically require 20-25% down for single-family properties. Multifamily (2-4 units) often requires 25-30% down. Unlike FHA, DSCR loans are investment properties only — you cannot use them for owner-occupied homes. The down payment requirement is higher because there's no government backing.

What are current DSCR loan rates in Florida?

DSCR loan rates in Florida in 2026 typically run 1-2% higher than conventional investment property rates. Expect 7.5-9.5% depending on your DSCR ratio, credit score, and loan-to-value. Higher DSCR (above 1.5) and stronger credit (above 740) push rates toward the lower end of that range.

Can I get a DSCR loan for a short-term rental or Airbnb in Miami?

Yes. Many Florida DSCR lenders now accept Airbnb income using AirDNA data or a letter from the property manager. Some require 12 months of short-term rental history. Rates may be slightly higher, and you'll need to document that the market supports the STR income projections.

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DSCR Loans Miami: How Investors Are Buying Properties Without W-2s in 2026

2026-03-29 · 4 min read

What Is DSCR and How Is It Calculated?

DSCR = Monthly Rental Income ÷ Monthly Debt Service (PITI)

A DSCR of 1.0 means the rent exactly covers the payment. Most Miami lenders want to see 1.15–1.25 minimum. Some programs accept as low as 0.75 if your credit is strong.

Example: - Rental income: $3,200/month - Mortgage (PITI): $2,560/month - DSCR: 3,200 ÷ 2,560 = 1.25 ✅

That property qualifies. No W-2. No paystubs. No employment history required.

Current DSCR Loan Rates in Miami (March 2026)

As of Q1 2026, DSCR loan rates in Miami typically range from 6.25% to 7.50%, depending on:

Your credit score (740+ gets the best rates)
Loan-to-value ratio (75% LTV is the sweet spot)
Property type (SFR, 2-4 unit, condo, short-term rental)
DSCR ratio (higher ratio = lower rate)

Rates are 0.5–1.0% higher than conventional loans, but the flexibility is worth it for most investors.

Why Miami Investors Rely on DSCR Loans

Miami's median listing price sits around $627,000 in 2026. Typical rents are $3,000–$3,500/month for a well-located SFR or 2BR condo. That math makes DSCR qualification achievable for a large portion of deals — especially in Little Havana, Hialeah, and the Miami Gardens corridor where prices are lower but rents hold firm.

Short-term rental investors in Brickell and Wynwood also benefit — most DSCR lenders now accept STR income from documented Airbnb/VRBO history.

How to Know If a Property Qualifies Before You Make an Offer

This is where most investors waste time — running DSCR math manually on every potential deal. SpillDeals does it automatically.

Type any Miami-Dade address at spilldeals.com and you'll instantly see:

Estimated monthly rent
DSCR at current market rates
Cash-on-cash return
Cap rate

You'll know in 10 seconds whether a property pencils as a DSCR deal — before you even call a lender.

DSCR Loan Requirements in Miami (2026 Checklist)

Requirement	Typical Minimum
Credit Score	680 (740+ for best rates)
Down Payment	20–25%
DSCR	1.0–1.25 (varies by lender)
Property Types	SFR, 2-4 unit, condo, STR
Loan Amount	$150K–$3M+
Reserves	6–12 months PITI

The Bottom Line

DSCR loans have unlocked Miami real estate investing for entrepreneurs, business owners, and self-employed investors who never qualified under traditional guidelines. If the property cash flows, you can buy it.

Before you apply anywhere, run your target address through SpillDeals to confirm the DSCR math works. Takes 10 seconds and saves you hours with lenders on deals that won't close.

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Alejandro Gonzalez is a Florida real estate investor and founder of SpillDeals — the only platform that grades every FL investment property A–F using live MLS data. Learn more →