Rental and Airbnb loans that qualify on the property's rent
A DSCR loan looks at whether the rent covers the payment, not at your tax returns or debt-to-income ratio. We finance long-term rentals, vacation rentals and small multifamily across Cape Coral, Fort Myers and the rest of Southwest Florida.
What is a DSCR loan?
A DSCR loan is an investment property mortgage that qualifies you based on the debt service coverage ratio: the property's monthly rent divided by its monthly payment, including taxes, insurance and any HOA. A ratio of 1.0 or higher means the rent covers the payment, and most lenders price their best terms there. You do not provide tax returns, pay stubs or a debt-to-income ratio. In exchange, expect a larger down payment and a higher rate than a conventional investor loan.
Talk it through with a licensed loan officer. No credit pull to ask questions. NMLS # 226100.
- Who it is for
- Landlords, Airbnb and vacation rental hosts, first-time and portfolio investors
- How you qualify
- Rent divided by the full monthly payment (DSCR); many lenders want 1.0 or higher, some go lower with more down
- Down payment
- Usually 20% to 25% on a purchase; cash-out refinances are available
- Rent used
- Signed leases, the appraiser's market rent, or short-term rental history or projections, depending on the lender
- Ownership
- Close in your name or in an LLC
- Watch for
- Reserves and prepayment penalties are common; we show you the options side by side
What to have ready for an investor loan
Bring what you have. We will tell you which pieces matter for the loan that fits your deal.
- The property details. Address, price, unit count, and whether it will be a long-term or short-term rental.
- Rent numbers. Current leases, or the rental history or projections for a vacation rental.
- Down payment and reserves. Bank or brokerage statements showing funds to close plus several months of payments.
- Your entity documents. Articles of organization and an operating agreement if you are buying in an LLC.
Investing in Southwest Florida takes local math
Cape Coral canal homes and Gulf-access rentals can pencil out well, but only when the costs are real. We build these into your ratio before you make an offer.
Insurance moves the ratio
Wind and flood premiums are part of the payment in a DSCR calculation. We get real quotes early, because they can decide whether a property qualifies.
Vacation rental rules
Florida requires a state vacation rental license and Lee County tourist tax registration, and HOAs and condos may limit rentals. Check before you count on short-term income.
Seasonal rent
Winter demand is strong and summer is slower. Lenders that use short-term income usually average a full year, so plan around the annual number.
From first call to closing, step by step
Share the deal
Tell us the property, price, expected rent and how you want to hold title.
Run the ratio
We calculate DSCR with real taxes, insurance and HOA, and compare it with a conventional option.
Lock in terms
Pick the rate, prepayment structure and down payment that fit your plan.
Close and rent
We coordinate appraisal, rent schedule, insurance and title through closing.
Investment property and DSCR questions, answered
Straight answers. If yours isn't here, call or send it through the form below.
What DSCR do I need to qualify?
Most lenders offer their best terms at a DSCR of 1.0 or higher, meaning the rent covers the full payment. Some programs accept ratios below 1.0 with a larger down payment or higher rate.
Can I use Airbnb or vacation rental income for a DSCR loan?
Yes, with lenders that accept short-term rental income. They typically use your 12-month rental history or a market projection for the property, instead of a long-term lease.
How much do I need to put down on an investment property?
DSCR loans usually need 20% to 25% down on a purchase. Conventional investor loans can start at 15% down for a single-unit property if your personal income qualifies.
Can I buy an investment property in an LLC?
Yes. Most DSCR lenders let you close in an LLC, usually with a personal guarantee. Conventional loans generally require you to own the property in your own name.
Do DSCR loans have prepayment penalties?
Many do, often stepping down over three to five years. You can usually choose a shorter penalty or none in exchange for a higher rate, so we price the options for how long you plan to keep the loan.
Do I need landlord experience for a DSCR loan?
Not always. Many lenders accept first-time investors, sometimes with a larger down payment or more reserves.
Send us a deal and we will run the numbers
Share the property, price and expected rent. We will come back with the ratio, the loan options and the cash you need to close.
- Phone
- (239) 634-6685
- Serving
- Cape Coral, Fort Myers and Southwest Florida
- NMLS
- Company 2371310 · Loan Officer 226100
