LOAN PROGRAMS · DSCR

DSCR loans.Qualify on the rent.

A DSCR loan qualifies you on the property's rental income instead of your personal income. DSCR stands for debt service coverage ratio: the rent compared with the monthly payment. These loans are for investment properties only, not homes you live in.

By Abdallah H. Fragomeno, Mortgage Advisor, NMLS ID 366447 (opens in a new tab) · PREMIER Financial Group of Florida, LLC, NMLS ID 1318440 · Updated October 15, 2026

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DSCR loans in Miami: the short answer

What it is: An investment property loan that qualifies on the property's rent, not your personal income.
The ratio: Rent divided by the full monthly payment, including taxes, insurance and HOA.
Short-term rentals: Accepted by some lenders. Short-term rental income can be used with documentation.
Investment only: Business-purpose loans. You cannot live in the property.

Who itfits best.

Real estate investors

Buying or refinancing rental properties.

Self-employed investors

No personal income documentation in most cases.

Buying in an LLC

Many lenders allow the property to be held in an LLC.

How itworks.

The ratio

The lender compares the rent with the monthly payment, including taxes, insurance and HOA.

Long-term or short-term rentals

Some lenders accept short-term rental income, with their own rules.

Reserves

Most lenders require cash reserves after closing.

Purchase or refinance

Including cash-out refinances on rentals you own.

Good to know.Before you decide.

Investment only

DSCR loans are business-purpose loans. You cannot live in the property.

Cost

DSCR loans may carry higher rates, fees and down payment requirements than conventional investment loans.

Questions,answered.

What does DSCR mean?

Debt service coverage ratio. It compares the property's rent with its monthly payment. A higher ratio means the rent covers the payment more comfortably.

Do I need to show my personal income?

In most cases, no. The property's rent is used to qualify, though lenders still review credit and reserves.

Can I use Airbnb income?

Some lenders accept short-term rental income, with their own documentation rules. We will find the lenders that do.

What DSCR do I need?

Many lenders look for rent that covers the full payment or more. Some lenders accept a ratio below 1.0, usually with stricter terms.

How is short-term rental income documented?

Usually with 12 months of booking history, or a market rent analysis from a short-term rental data provider, depending on the lender. Not every lender accepts short-term rental income.

Can first-time investors get a DSCR loan?

Yes. Some lenders allow it, sometimes with added reserve requirements.

Can I close in an LLC?

Yes. Many DSCR lenders allow the property to be held in an LLC, usually with a personal guarantee.

Do DSCR loans have prepayment penalties?

Many do, for a set period after closing. Options with shorter or no prepayment penalties may be available at a different price. We explain the trade-off before you choose.