Unlock Your Investment Potential with DSCR Loans in Florida

Flexible Financing Solutions for Investment Properties

Free Home E-Appraisal & Rental Income

Why Choose MJS Financial for DSCR Loans?

Welcome to MJS Financial LLC, your trusted mortgage broker in South Florida. We specialize in DSCR loans (Debt Service Coverage Ratio) , offering expert guidance and personalized solutions to help investors secure the financing they need for their investment properties. Whether purchasing a new property or refinancing an existing one, our experienced team is here to support you every step of the way.

     EXCELLENT  
     Based on 40 reviews 
    
 
 
   
 
 
        
   Holly Pridgen 
 2024-04-03
 
 
 Trustindex verifies that the original source of the review is Google. Our office just closed on a purchase with Ben! My office was the title company for the closing. Ben is very efficient and a good communicator,  which is essential to a successful closing. Often times we wait for the broker to get back with us and keep us in the loop. Ben always answers the phone and gets the info you need quickly so we can keep the closing moving. The closing went smooth, and the buyers were extremely happy Ben :)
  
 
       
   Avi Wasser 
 2023-10-22
 
 
 Trustindex verifies that the original source of the review is Google. Benjamin was professional and communicative. He made the home buying process a smooth and quick one. Highly recommended!
  
 
       
   Jamie Steinberg 
 2023-09-12
 
 
 Trustindex verifies that the original source of the review is Google. MJS Financial and Benjamin made the closing process very easy and seamless.  As I work for a title company, sometimes the broker's can make our job harder but Benjamin was very helpful and insightful and made my job easier.  I wish all our transactions were with Benjamin.
  
 
       
   Josh Solomon 
 2023-03-30
 
 
 Trustindex verifies that the original source of the review is Google. An easy 5 stars, I’d put more if I could. MJS made the process of securing a mortgage so seamless. They exhibited the utmost in professionalism and kindness. Highly recommended!
  
 
       
   Michelle Dabrow 
 2023-03-30
 
 
 Trustindex verifies that the original source of the review is Google. Amazing brokerage! Ben worked quickly and efficiently. He always had what was best for me as his priority.
  
 
       
   Taly Feldman 
 2022-12-16
 
 
 Trustindex verifies that the original source of the review is Google. Martin and Ben are always prompt and informative.  I highly reccomend working with them for your mortgage needs.
  
 
       
   Tomer Alcalay 
 2022-01-12
 
 
 Trustindex verifies that the original source of the review is Google. Knowledgeable, proactive and very responsive.  It was a pleasure working with Ben to get the loan closed.
  
 
       
   Ely Amos 
 2021-11-10
 
 
 Trustindex verifies that the original source of the review is Google. I couldn't have found better mortgage brokers to work with than Martin and Ben. They walked me through every step of the mortgage process with great professionalism and knowledge. I was completely new to the process so I was really appreciative of their responsiveness to my emails and phone calls as well as prompt and thorough replies to all of my questions. They are a terrific team that skillfully navigated me through a long and sometimes complicated process. Would recommend their services in a heartbeat.
  
 
       
   Yeshai Bane 
 2021-10-04
 
 
 Trustindex verifies that the original source of the review is Google. Martin and Ben were extremely helpful and a pleasure to work with.
  
 
       
   Avi Raden 
 2021-08-09
 
 
 Trustindex verifies that the original source of the review is Google. Made the process as smooth and efficient as possible. Very responsive and accessible throughout, which was greatly appreciated. Excellent service.

See If You Qualify

What is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan is a specialized type of mortgage designed specifically for investment properties. Unlike traditional loans that consider the borrower’s income, DSCR loans evaluate the income generated by the property itself. This makes DSCR loans an ideal choice for investors looking to leverage the rental income from their properties to qualify for financing.

Why Choose a DSCR Loan in Florida?

Focuses on Property Income, Not Personal Income A DSCR loan primarily evaluates the income potential of the property itself, making it an excellent choice for investors. This means your personal income and employment history are not the central factors in determining your loan eligibility. Instead, the focus is on the property’s ability to generate sufficient rental income to cover the mortgage payments, providing a more flexible and accessible financing option.

Competitive DSCR Loans Interest Rates and Terms DSCR loans offer competitive DSCR interest rates, typically ranging from 7.75% to 9% as of July 2024. These rates help you maintain a healthy cash flow and maximize your investment returns. The favorable terms of DSCR loans provide the financial leverage you need to succeed in the real estate market. Apply now to see more about your scenario.

Diverse Property Types for Single-Family Homes, 2-4 Unit Properties, and Warrantable Condos DSCR loans in Florida are versatile and can be used for a variety of property types. Whether you’re investing in single-family homes, multi-family properties with up to four units, or warrantable condominiums, a DSCR loan can provide the financing you need. This diversity allows you to tailor your real estate investment strategy to market conditions and your personal investment goals.

DSCR Loan Calculator

Purchase Price

Down Payment

Interest Rate

Years

Interest Only Payment?

Insurance

Taxes

HOA

Gross Rental Income

LTV:

PITI:

DSCR:

DSCR Loan Requirement

To qualify for a DSCR loan, the property must meet a minimum Debt Service Coverage Ratio (DSCR) requirement:

Minimum DSCR:

1.0 or higher

What is DSCR? The Debt Service Coverage Ratio (DSCR) is a key metric used to determine the property’s ability to generate enough income to cover its debt obligations. It is calculated by dividing the property’s annual net operating income by its annual debt service (the total amount of mortgage payments).

Example Calculation:

$500,000 Purchase Price, $100,000 Down payment (20%), 8% interest rate, 30 years, insurance $750, taxes $500, HOA $0, Gross Rental $4500

Monthly Debt Service (PITI): $4,185
Gross Monthly Rental Income: $4,500
DSCR Calculation: $4,500/ $4,185 = 1.08

A DSCR of 1.0 or higher indicates that the property generates sufficient income to cover its mortgage payments, making it a viable investment for lenders. Properties with a higher DSCR are considered less risky and more likely to qualify for favorable loan terms.

DSCR Loan FAQ

How to qualify for a DSCR loan in Florida?

To qualify for DSCR loans in Florida, you need to meet certain criteria such as a minimum DSCR of 1.0, a minimum FICO score of 660, and sufficient reserves. The property must generate enough rental income to cover the debt service, and you must provide the necessary qualifying documentation.

Is it hard to get a DSCR loan in Florida?

Getting a DSCR loan can be easier for investors compared to traditional loans because it focuses on the property’s income potential rather than the borrower’s personal income. As long as the property meets the required DSCR and other eligibility criteria, securing a DSCR loan can be straightforward.

How much do you need to put down for a DSCR loan?

The down payment for a DSCR loan typically ranges from 20% to 30% of the property’s purchase price. This percentage may vary based on the lender’s requirements and borrower credit score along with DSCR lenders overlays.

Can an LLC get a DSCR loan?

Yes, an LLC can obtain a DSCR loan in Florida. Many investors choose to close DSCR loans in an LLC to separate personal and business liabilities and take advantage of potential tax benefits. Additional LLC-related documents will be required.

Can I live in a home bought with a DSCR loan?

No, Florida DSCR loans are intended for investment properties. The property must generate rental income and cannot be used as the borrower’s primary residence.

Is a DSCR loan hard money?

A DSCR loan is not considered a hard money loan. While both types of loans are used for investment properties, DSCR loans typically offer more favorable terms and interest rates compared to hard money loans.

What are the disadvantages of DSCR?

Some disadvantages of Florida DSCR loans include higher interest rates compared to traditional loans, larger down payment requirements, and the need for the property to meet specific income criteria. Additionally, DSCR loans are not suitable for primary residences.

What documents are needed for a DSCR loan?

Documents required for a DSCR loan typically include an appraisal, rent schedule or active leases, a business purpose declaration, filed articles of organization (for LLCs), purchase contracts, reserves accounts, and more.

Can you pay off a DSCR loan early?

Yes, you can usually pay off a DSCR loan early. However, some loans may have prepayment penalties, so it’s important to review the loan terms with your lender.

Do you need income for a DSCR loan?

DSCR loans Florida focus on the property’s income potential rather than the borrower’s personal income. While personal income is not the primary factor, you still need to demonstrate the property’s ability to generate sufficient rental income to cover the debt service.

What are current DSCR loans interest rates?

Current DSCR loan interest rates typically range from 7.75% to 9%, depending on factors such as the property’s DSCR, the borrower’s credit score, loan amount, and LTV ratio. Use the mortgage calculator to get an idea of payments. Give us a call to find out your DSCR loan interest rate today!

Why would someone use a DSCR loan?

Investors use DSCR loans in Florida to leverage the income potential of their properties. These loans allow investors to qualify based on rental income, making them ideal for those with multiple properties or who want to keep personal income separate from their investment activities.

Disclaimer: The information provided on this page is for general informational purposes only and should not be construed as financial advice. MJS Financial LLC does not guarantee the accuracy or completeness of the information provided and is not responsible for any errors or omissions. Loan products, terms, and conditions are subject to change without notice and may vary based on individual circumstances and qualifications. It is recommended to consult with MJS Financial LLC for specific advice tailored to your situation.