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, and 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. Purchases in an LLC are usually permitted, which conventional generally is 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 the property is leased.
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 are underwritten more on the asset than on you.
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.