Debt Service Credit Ratio Loan
DSCR Loans — Smart Financing for Real Estate Investors
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DSCR Loan (Debt Service Coverage Ratio loan) is a type of investment property loan designed for real estate investors who want to qualify based on rental income, not personal income or tax returns. Instead of verifying pay stubs or W-2s, lenders use the property’s cash flow to determine if it can cover the mortgage payment. This makes DSCR loans a great fit for self-employed investors, business owners, and anyone building a rental property portfolio in
Miami’s growing
real estate market.
Basic Requirements
To qualify for a DSCR Loan in Miami Florida, the property’s rental income must be enough to cover the monthly mortgage payment, taxes, and insurance. This is measured using the Debt Service Coverage Ratio (DSCR) — calculated by dividing the property’s gross rental income by its total housing expense.
- A DSCR of 1.0 or higher means the property earns enough to pay for itself.
- Many lenders prefer a DSCR of 1.1 or higher, but some programs allow ratios below 1.0 with stronger credit or larger down payments.
Most DSCR programs require:
- Minimum credit score: typically 620–660
- Down payment: as low as 15–25%
- Loan amount: up to $2 million+ depending on the lender
- Loan type: first lien, interest-only, or fixed terms up to 30 years
Because these loans are based on property income, no personal income documents or tax returns are required — just a valid lease agreement, and or appraisal with rental analysis, and proof of reserves.
Who Can Qualify and Property Types
DSCR Loans are available to real estate investors, LLCs, corporations, or trusts purchasing or refinancing non-owner-occupied properties. Eligible property types include:
- Single-family homes
- Condos and townhomes
- 2- to 8-unit multifamily buildings
- Short-term rentals or Airbnb properties
- Mixed-use properties (case-by-case approval)
These loans are ideal for investors who want to grow their rental portfolio without the traditional income verification required by conventional loans.
What's Not Allowed
DSCR loans cannot be used for primary residences or owner-occupied homes. The property must generate rental income or have strong income potential. Loans with negative amortization, balloon payments, or prepayment penalties beyond typical investor terms are also not eligible. Borrowers must have a clean credit history without major recent delinquencies, bankruptcies, or foreclosures.
Why Choose a DSCR Loan
A DSCR Loan in Miami Florida gives investors freedom and flexibility. Since approval is based on property income — not personal income — it’s perfect for those with multiple properties, self-employment income, or complex financials. You can close faster, use business entities like LLCs, and build wealth through real estate with less paperwork.
Whether you’re buying your first rental property or refinancing a growing portfolio, I’ll guide you through every step — from analyzing cash flow to securing the best loan terms. As a trusted Miami mortgage broker, I work with top DSCR lenders to help you expand your investment opportunities with confidence.
Contact me today to get pre-qualified and start growing your real estate portfolio with a
DSCR
Loan built for investors.
FAQ
What programs are available for first-time homebuyers in Miami?
In Miami Florida, first-time homebuyers can take advantage of several programs, including FHA loans with low down payment requirements, state-sponsored first-time buyer assistance programs, and local grants to help with closing costs.
How can I qualify for a first-time homebuyer program?
To qualify, you generally need to meet criteria such as being a first-time buyer, having a steady income, acceptable credit score, and limitations on your maximum income based on your household size. Specific program requirements may vary, so it's crucial to consult with us to find the best fit.
What is the minimum down payment required for first-time homebuyer loans?
Many first-time homebuyer programs allow for down payments as low as 3% to 3.5%. FHA loans require a minimum of 3.5%, making them an attractive option for those looking to buy their first home.
Are there grants available for first-time homebuyers in Miami?
Yes, there are several grants available for first-time homebuyers in Miami through state and local programs. These grants can assist with down payments and closing costs, providing much-needed financial support.
Do I need a good credit score to qualify for a first-time homebuyer program?
While a higher credit score is beneficial and can improve your loan terms, some first-time homebuyer programs, like FHA loans, only require a credit score of 580 to qualify for the minimum down payment.
How can I start the application process for a first-time homebuyer loan?
To begin the application process, simply contact our team to schedule a consultation. We will help you gather essential documents, assess your eligibility, and guide you through the entire application process.
What are the key benefits of using a mortgage broker for first-time homebuyer loans?
A mortgage broker provides access to multiple lenders, offering you a wider range of loan products and competitive rates. We also simplify the application process and offer valuable advice tailored to first-time buyers, making the experience smoother and less overwhelming.