Florida's rental market is one of the strongest in the country. DSCR loans let investors qualify based on what the property earns, not personal tax returns. No W-2s. No employment verification. Just the rental income.
DSCR stands for Debt Service Coverage Ratio. It measures whether a rental property's income covers its monthly mortgage payment. When the ratio is 1.0 or higher, the property pays for itself. That single number replaces the tax returns, W-2s, and employment verification that conventional lenders require, which is why it fits Florida's investor market so well.
Florida investors with rental income, business income, or complex tax returns no longer have to fight conventional underwriting. DSCR approval is based entirely on the property's rental income relative to its monthly debt payment.
Monthly rent divided by monthly PITI (principal, interest, taxes, insurance). A ratio of 1.0 means the rent covers the mortgage. A ratio of 1.25 or higher is a strong approval. Florida's higher rent levels in Orlando, Miami, and Tampa frequently support these ratios.
Conventional lenders cap investors at 4 to 10 financed properties based on DTI. Because each DSCR loan is underwritten on the property itself, you can continue building a Florida portfolio without hitting that income-documentation wall.
*Sub-1.0 DSCR programs exist for investors with strong credit profiles and reserves. Not available with all wholesale lenders. Ask your Clear2 loan officer for details.
Florida note: The homestead exemption does not apply to investment properties. Florida property taxes on investment properties are factored into the PITI calculation and affect your DSCR ratio. Clear2 accounts for this when structuring your loan.
Florida's rental market is driven by two forces: population growth that keeps long-term rental demand strong statewide, and one of the country's best short-term rental environments. Both translate to solid DSCR ratios across multiple markets.
Proximity to Disney, Universal, and SeaWorld makes Orlando one of the strongest STR markets in the US. Long-term rental demand is also growing as tech and logistics employers expand in the metro. The 2025 conforming loan limit for most Florida counties is $524,225, keeping many Orlando investment properties within standard DSCR loan parameters.
Tampa, St. Petersburg, and Sarasota attract long-term renters who have relocated from higher-cost metros. Florida's landlord-friendly laws, including no statewide rent control and a relatively efficient eviction process, make the Tampa Bay corridor popular with buy-and-hold investors. Median rents across the Suncoast have remained elevated since the 2021, 2022 migration surge.
Miami-Dade carries some of the highest rents in the state, which supports strong DSCR ratios even at higher price points. Fort Lauderdale and Boca Raton attract both long-term renters and STR tourists. Florida has no state income tax, which improves cash flow analysis for investors comparing Florida to other markets. The Panhandle and Florida Keys offer distinct STR income profiles driven by beach tourism.
Rate premium comparisons are general estimates and vary by lender, credit profile, and market conditions. Contact Clear2 for a current rate quote.
DSCR loans serve a wide range of investor profiles. Here are three situations Clear2 handles in the Florida market.
A Michigan-based investor wants to purchase a two-bedroom Tampa townhome as a long-term rental. The unit rents for $2,100 per month. Projected PITI comes in at $1,620. That puts the DSCR ratio at 1.30, a solid approval. The investor qualifies entirely on Tampa's rental income. No Michigan W-2s are reviewed. Florida's no-state-income-tax environment improves net cash flow compared to properties in taxable states.
A Jacksonville investor already owns four rental properties financed conventionally. A fifth property would push them past the conventional guideline. Their debt-to-income ratio, after factoring in all four existing mortgages, is too high for a standard bank loan. DSCR treats the fifth property on its own terms. The Jacksonville rental generates $1,550 per month against a projected PITI of $1,210, a DSCR of 1.28. They close without providing a single tax return.
An out-of-state investor purchases a warrantable condo near International Drive in Orlando for short-term rental. Comparable STR properties in the area generate $48,000 to $60,000 annually. The lender uses a 1007 rent schedule reflecting fair market STR income to establish the DSCR ratio. No personal income verification required. The condo qualifies on projected rental income, and the investor holds title in an LLC.
As an independent mortgage broker, Clear2 Mortgage has access to dozens of DSCR lenders, not just one bank's program. That means we can match each Florida investor to the lender whose rate sheet, reserve requirements, and STR income guidelines fit their specific property and market.
Whether you're buying your first Florida rental, pulling equity from an existing STR, or expanding a portfolio past the conventional property limit, our team shops the entire wholesale DSCR market on your behalf.
Clear2 is based in Troy, Michigan, and licensed in Florida. Every client works directly with their loan officer from quote to close, with no handoffs and no call-center queue.
Dominic Abdulahad brings more than 10 years of mortgage experience, including a background reviewing thousands of loans as an underwriter. He uses that technical knowledge, along with experience owning rental property, to educate first-time buyers and real estate investors.
(248) 230-5872
Five-star reviews from Clear2 clients on Google.
"Donavin was straightforward and a breeze to work with. Communication was quick and easy. The whole process was seamless and he was available for guidance or questions. I would not hesitate to use Clear2 Mortgage in the future."
"Alex was absolutely amazing from the beginning. He was patient and thorough with all of our questions. He even followed up after the process was finalized to ensure everything was still good. I would recommend him to everyone!"
"The process was seamless and every question I had as a first-time home buyer was answered. My loan officer gave me his professional opinion based on my specific circumstances to personalize my loan."
Does Florida's no state income tax affect a DSCR loan?
Florida's lack of a state income tax does not change the DSCR calculation itself, but it does improve net cash flow for investors who compare Florida returns to properties in states with income tax. Better net cash flow can support a stronger investment case even when the DSCR ratio on paper is the same.
Can I use DSCR to buy a short-term rental in Orlando or Miami Beach?
Yes. Many DSCR lenders in Clear2's wholesale network accept short-term rental income, typically supported by a 1007 appraisal rent schedule showing estimated fair market STR rates. Orlando, Miami Beach, the Panhandle, and the Keys are active STR markets where this program is commonly used. Note that local STR licensing requirements vary by municipality.
How does Florida property tax affect my DSCR ratio?
Florida's homestead exemption does not apply to investment properties. Non-homestead investment properties are taxed at full assessed value, which can be meaningfully higher than owner-occupied rates. Clear2 incorporates your property tax estimate into the PITI when calculating your DSCR ratio, so the number we quote reflects the real payment picture.
What is the conforming loan limit for Florida investment properties?
The 2025 conforming loan limit for most Florida counties is $524,225. Monroe County (the Florida Keys) has a limit of $874,000. DSCR loans are non-QM products and are not bound by conforming limits, so Clear2 can finance Florida investment properties above these thresholds through our jumbo DSCR lender relationships.
Can I buy a Florida investment property in an LLC?
Yes. LLC and other entity vesting is available through most DSCR lenders in Clear2's network. This is one of the primary reasons investors choose DSCR over conventional financing, which generally requires personal title. Clear2 can structure the Florida loan to match your entity setup.
Does Clear2 work with out-of-state investors buying in Florida?
Yes. Out-of-state investors are common in Florida's rental market. Because DSCR loans do not require employment verification or personal income documentation, the location of the borrower is less relevant than the performance of the Florida property. Clear2 handles the entire process remotely, from rate quote to closing.
No tax returns. No employment docs. Tell us about the property and we'll shop our wholesale lender network for the best Florida DSCR rate available.
Clear2 Mortgage, LLC. NMLS #1911663. Licensed Mortgage Broker. 2600 W Big Beaver Rd, Suite 100, Troy, MI 48084. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval, property appraisal, and underwriting guidelines. Rates and terms subject to change without notice.
