Investors
If you own rental properties — or plan to — in South Florida's Broward, Miami-Dade, or Palm Beach markets, you've likely run into one stubborn wall: conventional lenders that want your W-2s, tax returns, and a clean debt-to-income ratio. The problem is that many of the best investors in this market are self-employed, write off significant income, or already carry mortgages on multiple properties. Their finances don't fit the conventional mold, even when their properties cash-flow beautifully.
That's exactly what DSCR loans were built to solve. They qualify you based on the property's rental income — not your personal income — and they've become the dominant financing vehicle for serious South Florida investors in 2026.
DSCR stands for Debt Service Coverage Ratio. It's a non-QM (non-qualified mortgage) product that measures whether a property's rental income is sufficient to cover its mortgage payment. The lender looks at the property's cash flow, not your bank account or pay stubs.
The formula is straightforward: divide the property's gross monthly rent by its total monthly PITI (principal, interest, taxes, and insurance). A ratio of 1.0 means the rent exactly covers the payment. A ratio of 1.25 means rent exceeds the payment by 25% — and that's where most lenders set their preferred minimum for the best pricing.
South Florida is one of the strongest markets in the country for DSCR financing because rental demand is structural, not cyclical. Population inflows from the Northeast and Latin America, Florida's zero income tax, and a chronic housing undersupply create the kind of durable rental demand that gives lenders confidence in the income stream.
The lender's appraiser will evaluate the subject property and provide a market rent schedule. That scheduled rent — not the rent you plan to charge — is what the lender uses to calculate your DSCR. In South Florida's tight rental market, appraised rents have generally held strong, which works in investors' favor.
Here's a simple example: a Broward County single-family home with a market rent of $2,800 and a total PITI of $2,200/month has a DSCR of 1.27. That clears the 1.25 threshold most lenders prefer, and you'd qualify for competitive rates without providing a single pay stub.
Key ratios to know: a DSCR below 1.0 means the rent doesn't cover the payment (hard to finance, high rates), 1.0 to 1.24 is borderline qualifying territory, and 1.25-plus gets you the best rate tiers. Some lenders offer "no-ratio" DSCR products for borrowers with strong credit, but expect to pay an additional 50–100 basis points for the flexibility.
DSCR loan rates in Florida currently range from 6.00% to 8.50% depending on your borrower profile, according to Griffin Funding. That's a meaningful improvement from the 8–9% range investors faced in 2024 and reflects broader interest rate normalization. The specific rate you'll be quoted depends on several factors: your credit score, your DSCR ratio, the loan-to-value, the property type (single-family, multi-unit, short-term rental), and whether you accept a prepayment penalty in exchange for a rate reduction.
A few points worth understanding: taking a 3-year prepayment penalty (also called a step-down) typically shaves 25–50 basis points off your rate. For a buy-and-hold investor not planning to refinance or sell in the near term, this is usually a smart trade. Conversely, if you're buying a property to stabilize and refinance within 12–18 months, a no-prepayment product at a higher rate may be worth it.
Requirements vary by lender, but the typical baseline looks like this: minimum credit score of 620–680, down payment of 20–25%, loan amounts ranging from $150,000 to $3 million-plus, and property types including single-family, 2–4 unit, short-term rental, and condos. There are no income documents required — no W-2s, no tax returns, no employment verification. Closings can happen in as few as 14–21 days, which matters when you're competing for South Florida inventory.
For most investors, 25% down is the realistic starting point. At 20% down the rate will be slightly higher, and some lenders require mortgage insurance or charge it into the rate. Running the numbers at both LTVs before you commit is worth the ten minutes.
Fort Lauderdale's average apartment rent hit $2,805 per month in 2026, according to RentCafe — and single-family home rents in suburban Broward run even higher, averaging around $3,000 per month. With new multifamily deliveries in the Fort Lauderdale metro projected at just 3,300 units in 2026 — the lowest since 2022 — the supply picture supports continued rent stability.
For a Broward investor purchasing a single-family home at $450,000 with 25% down ($112,500), the remaining $337,500 financed at 7.25% for 30 years carries a principal-and-interest payment of roughly $2,303. Add property taxes (average 1.8% in Broward = $675/month) and insurance ($400/month) and total PITI lands around $3,378. At a market rent of $3,000, the DSCR is 0.89 — tight. At $3,200, it's 0.95 — still thin. This is why purchase price and down payment structure matter enormously. Paying down to 30–35% equity, or targeting lower-priced properties with proportionally stronger rents, is how investors in Broward are making DSCR work.
Conventional financing caps you at 10 financed properties, requires personal income documentation, and uses your full debt-to-income ratio — meaning every other mortgage you carry counts against you. DSCR loans have no portfolio cap beyond what the individual lender imposes, require no personal income documentation, and evaluate each property on its own merits. For investors building a portfolio of three, five, or ten doors in South Florida, DSCR is the mechanism that makes scaling possible.
The trade-off is cost. DSCR rates run 100–200 basis points above comparable conventional rates. For a $300,000 loan, that's roughly $2,000–4,000 per year. Most investors absorb this in the rental spread, the portfolio scalability, and the speed to close — all of which matter in a competitive market like South Florida.
The most common error is running the DSCR math without accounting for insurance correctly. South Florida insurance costs have climbed sharply — averaging $5,000–$5,400 per year on a single-family home — and many investors underestimate this component of PITI, which tanks the ratio on paper after the appraisal comes back. Get a real insurance quote before you structure the deal, not after.
The second mistake is waiting for rates to drop before acting. Rates have eased in 2026, inventory is still tight, and South Florida rents are holding. The investors who succeed here consistently are the ones who buy to the numbers, not to the rate environment.
If you want to run the DSCR numbers on a specific property — or explore what you can qualify for without touching your tax returns — call or text Michael at 954-715-5668. This is what local investor financing looks like in practice.
Michael Mazar works with investors across Broward, Palm Beach, and Miami-Dade. Whether you're buying your first rental or adding to an existing portfolio, get a straight answer on what you can qualify for — without the paperwork hassle.
Call/Text Michael: 954-715-5668 Email Michael