"DSCR math is simple. The part investors miss is that Florida's LTV cap doesn't move just because your credit score is great — plan for 25% down, not 20%."David DonovanSarasota & Manatee Counties
Investors Hub / DSCR Loans Explained
Investing With David · Financing & LendingIf the rental income covers the mortgage payment, you can qualify — no W-2s, no tax returns, and no cap on how many properties you hold. Here's how the ratio actually works, and the Florida-specific catch most national guides skip.
DSCR stands for Debt Service Coverage Ratio: rental income divided by the mortgage payment (principal, interest, taxes, insurance, and association dues). A ratio of 1.0 means the rent exactly covers the payment. Above 1.0 means the property cash flows on paper; some lenders will go below 1.0 for stronger-credit borrowers willing to put more down.
That's why serious investors scaling past their first rental almost always end up looking at DSCR financing — it qualifies you on what the property itself earns, not your personal debt-to-income ratio.
Many Florida DSCR lenders cap purchases around 75% loan-to-value (roughly 70% on refinances), largely independent of your DSCR ratio or credit score — tighter than the 20% figure often quoted in generic national guides. In practical terms: budget for at least 25% down on a Florida investment property, not 20%, and confirm the exact cap with your lender before you count on a number.
LTV caps vary by lender, loan program, and property type — this is the pattern I see most often on Florida investor deals, not a fixed statute. Some lenders go further on stronger-credit files; others are more conservative on coastal or flood-zone properties. Confirm the specific number with your lender before you build a budget around it.
Many DSCR programs look for a credit score in the 640 range as a starting point, with meaningfully better pricing at 700+. Reserve requirements typically run 3–12 months of payments, depending on loan size and how many properties you already own. Exact minimums vary by lender and program — these are typical patterns, not fixed thresholds.
Run your numbers on the DSCR calculator first so you know your target purchase price and rent — then bring those numbers to a lender who actually knows Florida's LTV pattern. I can point you to lenders who work DSCR deals here regularly if you don't have one yet.
"DSCR math is simple. The part investors miss is that Florida's LTV cap doesn't move just because your credit score is great — plan for 25% down, not 20%."David DonovanSarasota & Manatee Counties