Real Estate Investment Loans in Florida: Every Option Compared
Real estate investment loans Florida buyers use range from conventional to DSCR to hard money. Here is which fits which deal, and what each costs.
Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.
Real estate investment loans Florida investors use fall into four families. Picking the wrong one costs more than negotiating the rate.
The right choice depends on how you document income, how fast you must close, and how long you will hold. Our investment property loan page is the starting point.
Conventional, when your returns support it
Best pricing of the four. Twenty percent down on a single unit, 25% on two to four units, and full income documentation.
The limit is how many financed properties you hold. Agency guidelines cap it, and past that point you move on.
Run the payment on the investment property calculator.
DSCR, when the property carries the file
Qualifies on rent versus the full payment, with no tax returns and no debt-to-income test.
Most programs want a ratio of 1.00 or better and 20% to 25% down. Most programs allow purchases in an LLC. Conventional financing generally does not.
See DSCR loans and check your ratio on the DSCR calculator.
Hard money, when speed or condition rules it out
For auction purchases, distressed property, or anything that will not pass a conventional appraisal.
Interest-only, one to three points, and a term measured in months. See hard money loans and model the true cost on the hard money calculator.
The exit is the deal. Usually a sale, or a DSCR refinance once you lease the property.
Portfolio and blanket, at scale
Once you are past agency limits, portfolio loans keep the loan with the lender rather than selling it.
Blanket loans finance several properties under one note, which simplifies a growing rental portfolio.
Both trade rate for flexibility, and both lean on the asset more than on you.
Financing two-to-four units
Small multi-family carries higher conforming limits and stronger rent coverage.
Expect 25% down on conventional financing for a non-owner-occupied duplex through fourplex.
If you will occupy one unit, FHA at 3.5% down applies. It is the cheapest entry into Florida rental property.
Building a portfolio
Agency guidelines allow up to ten financed properties, though many lenders stop lower.
Past that, portfolio and blanket loans take over.
Lenders count reserves per property, which becomes the practical constraint on growth.
Modelling returns honestly
Use non-homestead taxes and a real insurance quote.
Assume vacancy, maintenance and management even if you self-manage.
Then check the return on the cash-on-cash calculator.
Matching the loan to the hold
Buying and holding: conventional if your returns support it, otherwise DSCR.
Buying, renovating and selling: hard money.
Buying, renovating and holding: hard money first, DSCR refinance after stabilizing.
Reserves and scale
Reserves are the practical limit on portfolio growth, not income.
Six months per property is common, and it compounds as you add properties.
Retirement accounts usually count at a discount.
The Florida numbers to model
Non-homestead property taxes after reassessment.
A real insurance quote, not a rule of thumb.
Vacancy, maintenance and management even if you self-manage.
Then check it on the cash-on-cash calculator.
Getting started
Identify the property and get a realistic rent figure first.
Assemble two months of statements showing down payment and reserves.
Then start with a pre-approval and we will price conventional against DSCR side by side.
A note on entities
Most DSCR programs allow an LLC. Conventional generally does not.
Set the entity up before applying rather than transferring title afterwards.
You will personally guarantee the loan either way.
Where most investors go wrong
Underwriting with the seller's tax bill rather than the reassessed figure.
Estimating insurance instead of quoting it for the specific address.
Forgetting that reserves scale with the portfolio and become the real growth constraint.
A simple decision path
Do your tax returns support the debt? Take conventional.
They do not, but the rent covers the payment? Take DSCR.
The property will not finance conventionally, or the clock rules it out? Take hard money, then refinance.
What to bring us
The address, the purchase price and a rent figure.
Two months of statements showing down payment and reserves.
That is enough for us to price every route and tell you which actually costs least.
Final thought
The financing rarely makes a bad deal good. It can make a good deal better.
Underwrite the property honestly first, then choose the loan.
Next steps
Bring the address, purchase price, rent figure and two months of statements. That is enough to price conventional against DSCR and hard money.
A note on reserves
Reserves are counted per property and become the practical limit on portfolio growth, well before income does.
Worth repeating
Florida property taxes reset on purchase and landlord insurance can double an inland equivalent. Both belong in your model at quoted figures.
The Florida numbers that decide the deal
Taxes reset on purchase because the homestead cap does not transfer. Insurance on a coastal rental can double an inland equivalent.
Both sit in the payment and therefore in your DSCR. Underwrite from real quotes, then check the return on the cash-on-cash calculator.
The CFPB non-QM explainer covers the category most of these sit in. Start with a pre-approval.