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West Forest Capital

Florida DSCR Loans

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If you you’re looking for a DSCR rental loan in Florida, we have you covered.

West Forest Capital is a leading Florida DSCR rental loan provider, financing real estate investments up to $3 million.

What is a DSCR Rental Loan?

  • A DSCR (Debt Service Coverage Ratio) rental loan is long term real estate financing – often up to 30 years
  • Personal income and personal credit are not significant factors in the underwriting
  • The loan is based off the property value, and the income it generates
  • Fast closing, can be done within 2-3 weeks

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(Investment Properties Only)

Property Types

Lending Parameters

Loan Size$100,000 - $3,000,000
Loan to ValueUp to 80%
Primary ResidenceNot accepted
Rental statusRented preferred but not required (can use market rents)
TermUp to 30 years
FormatFixed or Variable available
RateVaries by product, correlation with Treasury Rates
PointsTypically 2%

Counties Covered

We provide DSCR rental loans in the following counties in Florida:

  • Broward County
  • Collier County
  • Duval County
  • Hillsborough County
  • Martin County
  • Miami-Dade County
  • Orange County
  • Palm Beach County
  • Pinellas County
  • Volusia County

Recently Funded Bridge Loans

Why Use a Florida DSCR Rental Loan

  1. If you own your own business. Business owners have many expenses and unpredictable income.  Your business might have significant income, but you personally might not.  Since a DSCR loan does not require personal income, it’s ideal for business owners.
  2. If you have imperfect credit. To qualify for a DSCR rental loan, the underlying customer metrics, such as FICO score, are less important than the actual asset – your rental property.  Typically, if your FICO is in the mid-600s or above, we can work with you.
  3. Fast approval process. DSCR rental loans have a much faster approval process (2-3 weeks) than traditional loans, allowing investors to secure financing quickly and take advantage of investment opportunities as they arise.
  4. Flexible Repayment Terms. DSCR rental loans come with flexible repayment terms. This can be especially beneficial for investors who have multiple rental properties and need to manage their cash flow effectively.  Examples of options are 30 year fixed rate or a 5/1 ARM (which simply means the rate is fixed for 5 years and then resets every year going forward; there are also 7/1 ARMs, and so on).
Rental loan apartment
Florida rental loan lender
Fast rental loans Florida - finance house

Why Choose a Florida DSCR Rental Loan

Investing in rental properties in the state of Florida has historically yielded great returns: rents that grow much faster than the national average, historically strong appreciation as more and more people move to the state, and the added benefit of real estate depreciation for tax purposes. The most important aspect in growing your rental portfolio is finding the right capital partner. However, this can sometimes be tricky as most lenders – and therefore most loan products – are not designed for real estate investors who are looking to get a loan primary based on the property and its ability to generate income.

Enter Florida DSCR rental loans. DSCR loans offer a smart alternative for property financing without the annoying document requests and stringent requirements typically associated with run of the mill bank loans. DSCR rental loans also allow investors long term financing, up to 30 years, at attractive rates.  It’s worth noting that banks only offer their best rate on short duration loans, typically 3-5 years in length. This creates a refinancing risk in case property values fall or rates rise. Instead, it’s better to lock in long term financing with a Florida DSCR rental loan.

Florida offers attractive real estate opportunities in each part of the state. Urban centers like Miami, Orlando, Tampa and Jacksonville accommodate a busy lifestyle with an ever-growing corporate base.  As companies continue to move, and employees follow, demand for housing is at an all-time high. Other areas such as West Palm Beach, Fort Lauderdale, St. Petersburg, Naples, and Kissimmee offer elegant suburban living with convenient access to nearby larger cities.  Renters, particularly those in search of single-family homes, often gravitate towards these cities, fueling a robust demand for rental properties.  Consequently, Florida real estate investors can realize tremendous gains both in rental income and property valuations.

Florida’s economy has been very strong and continues to grow. The state feels more financially stable than at any time in the past.  No longer is the economy mostly tourist dependent; rather, an influx of industries have created steady new jobs, boosting job opportunities and wages. This trend has put upwards pressure on real estate rental prices, which fits nicely with the requirements of a DSCR loan.

Florida rental loan for house

Getting a DSCR Rental Loan in Florida

Off the bat, it’s important to know that a DSCR Rental Loan in Florida is much easier to quality for than a traditional bank loan. Bank loans have a lot of restrictions, many of which are tied to the person representing the property (credit, income, etc) but not necessarily the property itself. So, for example, if you have other debts or have too many properties, a bank may not provide you a loan on a real estate property that has exception cashflow.

However, Florida real estate investors who opt for DSCR rental loans understand that this loan type allows lenders to evaluate each property individually, and underwrite the property itself rather than the person managing it. Finally, you might be asking yourself about the timing. More good news here – the entire DSCR rental loan process takes just two to three weeks.

Asset Based rental loan Lender

Asset Based Lender Providing DSCR Rental Loans in Florida

As a Florida asset-based lender focused on rental loans, we primarily only look for one thing: does the property’s operating income (NOI) surpass the property’s debt service. We often get asked about credit score requirements – and yes there is a minimum score in the mid 600s, but other than that, we don’t require a high FICO.

Talk to us about your real estate investment property and want type of financing you are seeking. Chances are a Florida real estate DSCR rental loan is your best bet.


Also known as a Debt Service Coverage Ratio loan, a DSCR loan is a type of real estate mortage loan that can be used to purchase or refinance a property. They differ from a traditional mortgage loans in two primary ways:

They are intended for investment properties only and they are based on the value and rental income potential of the property rather than the income of the borrower.

You are typically eligible for a DSCR loan if the below conditions are met:

  • The property is a condo, single-family residence, a duplex, triplex, quadplex, or multi-family
  • Investment property, cannot be primary residence
  • The property does not require rehab
  • The property is an LLC rather than a personal name (can be transferred to an LLC upon closing)
  • Insurance and taxes are up to date

Since DSCR loans are primarily lent on the asset rather than the borrower’s credit or income, FICO requirements are limited.  Typically, a score above 660 will work.

Additionally, since the property must be able to be able to produce income, vacant land, or primary residences are not permitted.

The minimum DSCR ratio requirement is typically 1.1x. DSCR ratios are calculated by dividing the Net Operating Income (NOI) by the Property Debt Service. The NOI is equal to the total rent minus taxes and insurance, while the Debt Service is equal to the mortage payment (principal plus interest).

DSCR loans make it possible for borrowers with non-W2 income and other non-traditional income sources to receive a loan to purchase real estate since they are based on the value of the property and the property’s ability to generate rental income and cashflow. As mentioned, these types of loans are not based on personal income, making the borrower’s income irrelevant.

There are several benefits which make DSCR loans superior to bank loans or other real estate financing products.  First, DSCR loans make it possible for borrowers with non-traditional forms of income to obtain a mortgage. Second, even if you can satisfy a bank’s requirements for income, DSCR loans allow borrowers with credit issues to secure a mortgage.  Finally, DSCR loans are simply much faster to get – they can be approved within as little as two weeks, a significantly shorter amount of time than a traditional mortgage loan.

The most common misconception about DSCR loans is that borrowers assume the qualification terms are the same for these types of loans as they are for traditional mortgage loans. But this is incorrect. Unlike mortgage loans, DSCR loans do not have any income requirements, and much fewer credit requirements. This makes it more likely for borrowers to receive funding for real estate properties that they otherwise would not qualify for.

One potential drawback to a DSCR loan can be the down payment requirement upon purchase, which can sometimes be close to 20 or 25% of the purchase price. A second drawback is that the mortgage rates tend to be a bit higher than traditional mortgage loans.  And finally, unlike traditional mortgage loans, DSCR loans are usually provided by smaller lending companies, so it’s important to understand the loan and be comfortable with the company providing it.

A lender evaluates the borrower’s ability to repay a DSCR loan based on the property’s DSCR ratio. As mentioned earlier, this metric takes into account the property’s NOI (Net Operating Income) and the total debt service.

The NOI is the income amount expected to be generated by a property after all operating expenses have been deducted (utilities, maintenance on the property, management fees, etc.).

The total debt service includes both the principal amount and interest payments due on the loan.

When both are taken into consideration, the ratio often needs to be at least 1.1x to show lenders that the borrower will have enough cash flow coming from the property to make the mortgage payments on the loan.

Borrowers can improve their chances of getting approved for a DSCR loan by having cash on hand to cover the down payment amount in the event of a purchase (which can be close to 20-25% of the purchase price).  (It’s worthwhile to note that borrowers don’t need to come up with a down payment when refinancing into a DSCR loan).  They also can improve their chances of being approved by having the property held in an LLC, rather than in the borrower’s name. The type of property and its use will matter as well – investment properties such as condos, single-family residences, multi-family homes, and some commercial properties will likely be easier to approve than land, primary residences, or properties for industrial use.

Borrowers can use a DSCR loan to expand their business by purchasing their first rental property and additional rental properties thereafter.   In fact, when using DSCR loans, there is no limit on the number of properties that can be acquired, so long as each property is able to produce cash flow with an acceptable DSCR ratio (typically 1.1x or more).  Before applying for a loan, borrowers should have enough cash to cover the down payment on the property.  They should also evaluate the costs associated with each rental purchase, including utility fees, any potential HOA costs, management fees, and maintenance expenses.   These costs, plus the mortgage payment should be compared against the actual or potential rents to make sure there is sufficient coverage.  In the event of refinancing, a DSCR loan can also be used.  In this case, the borrower should make sure that the maximum loan amount can be covered by the same calculation.

West Forest Capital is the fastest DSCR Loans Lender in Florida

Florida DSCR Loans Loan Lender

We fund DSCR Loans in 2-3 weeks.
Commercial and industrial loans are funded in two weeks.

If you are looking for a Florida DSCR Loans Lender, give us a call.

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