DSCR Loan for Florida investment

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DSCR Loan for Florida investment

Laurens Van swol
Member since 2023 · 10 posts · 9 votes

We are exploring the possibility of purchasing an investment property in Florida. As U.S. citizens residing in Europe, we are required by the local tax code to hold the property in our personal name. However, our research indicates that many DSCR lenders require Florida properties to be held in an entity.

Are there any DSCR lenders that offer loans for properties held in a personal name?

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Elias HalvorsonBusiness Member
HI · Member since 2024 · 225 posts · 130 votes
1y

Tons of lenders will do this - just go to findamortgagebroker.com and search your local area. Each one you find probably has 10-30 DSCR lenders they work with that can do this. There is no issue doing it in your personal name.

Personally, I would be careful in Florida. I am biased but I see property insurance going up higher and higher annually from today's rates. If I were you I would factor in a 50-100% increase in your insurance rates over the next 3-5 years. If your investment is still profitable with the increase, then press ahead. Just my two cents. 

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  • Brandon Croucier
    Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes
    1y

    You can do DSCR in your personal name in Florida, just needs to be with the right investor.

    0Reply
  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    1y

    Tons of lenders will do this - just go to findamortgagebroker.com and search your local area. Each one you find probably has 10-30 DSCR lenders they work with that can do this. There is no issue doing it in your personal name.

    Personally, I would be careful in Florida. I am biased but I see property insurance going up higher and higher annually from today's rates. If I were you I would factor in a 50-100% increase in your insurance rates over the next 3-5 years. If your investment is still profitable with the increase, then press ahead. Just my two cents. 

    808-517-6416
    Elias Halvorson C2 Hawaii NMLS#1697041HI Branch NMLS#1244222 585 Reviews
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  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 664 posts · 226 votes
    1y

    Hey Laurens!

    There's definitely a few things to note since you are residing in Europe, most of the investors we work with that live over there do put it in an entity but there are a few details for how that would work since you aren't necessarily local. DSCR loans in themselves can be in a personal name, just a few nuances for international investors. Feel free to reach out! Happy to go through some details on that if that'd be helpful.

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group548 Reviews
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  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    @Laurens Van swol a few banks that we've worked with in the past allow you to close in your personal name. Happy to share some contacts with you. Feel free to reach out! 

    [email protected]619-456-8311
    Helm Mortgage Corp.5125 Reviews
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  • Jeff ChisumPro Member
    Lender · All 50 States · Member since 2020 · 248 posts · 142 votes
    1y

    This is my specialty.  Everything in house.

    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    1y

    Yep, there are lenders that'll allow you to close in your name!

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    1y
    Quote from @Laurens Van swol:

    We are exploring the possibility of purchasing an investment property in Florida. As U.S. citizens residing in Europe, we are required by the local tax code to hold the property in our personal name. However, our research indicates that many DSCR lenders require Florida properties to be held in an entity.

    Are there any DSCR lenders that offer loans for properties held in a personal name?

    It does depend on the lender. From my understanding, many require it be held in an entity name for compliance reasons.
    0Reply
  • Laurens Van swol
    OP
    Member since 2023 · 10 posts · 9 votes
    1y
    Quote from @Derek Brickley:

    Hey Laurens!

    There's definitely a few things to note since you are residing in Europe, most of the investors we work with that live over there do put it in an entity but there are a few details for how that would work since you aren't necessarily local. DSCR loans in themselves can be in a personal name, just a few nuances for international investors. Feel free to reach out! Happy to go through some details on that if that'd be helpful.


     Thank you for your reply I will send you an e-mail

    0Reply
  • Laurens Van swol
    OP
    Member since 2023 · 10 posts · 9 votes
    1y
    Quote from @Jeff Chisum:

    This is my specialty.  Everything in house.


     Hi Jeff I will send you a message 

    0Reply
  • Caleb Marks
    Austin, TX · Member since 2022 · 7 posts · 6 votes
    1y

    You are correct, it is common for DSCR lenders to require the borrower to be a business entity in Florida, and some other states sprinkled across the US. If you are set on closing under your personal name, you definitely want to check with your lender on that during the initial fact-finding stage.

    This is something we run into quite often and can easily navigate. Feel free to reach out! 

    0Reply
  • Crystal Stroessner
    Lender · Greater DFW area · Member since 2024 · 14 posts · 5 votes
    1y
    Quote from @Andrew Zamboroski:
    Quote from @Laurens Van swol:

    We are exploring the possibility of purchasing an investment property in Florida. As U.S. citizens residing in Europe, we are required by the local tax code to hold the property in our personal name. However, our research indicates that many DSCR lenders require Florida properties to be held in an entity.

    Are there any DSCR lenders that offer loans for properties held in a personal name?

    It does depend on the lender. From my understanding, many require it be held in an entity name for compliance reasons.

    This primarily. It's the lenders who usually require that the property is listed under an entity, depending on the state that they operate on. The good thing is there are so many lenders available, you just have to vet and research what will be the best fit for you. 

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Laurens Van swol:

    We are exploring the possibility of purchasing an investment property in Florida. As U.S. citizens residing in Europe, we are required by the local tax code to hold the property in our personal name. However, our research indicates that many DSCR lenders require Florida properties to be held in an entity.

    Are there any DSCR lenders that offer loans for properties held in a personal name?


    There are very few lenders that will allow you to close in a personal name in FL. I see a lot of posters on here saying a lot of lenders can do it. Florida is one of those tricky states so you need to work with a DSCR lender that is very lenient on vesting requirements.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 500 votes
    1y

    There are DSCR lending options in your personal name. Different DSCR lenders have different guidelines.

    More on DSCR loans: DSCR loans won't use your income to underwrite the loan. DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

    Here's a bit more in detail about how rates are calculated for DSCR loans:

    1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.


    2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

    3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

    4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

    I've included an example below to help illustrate this.

    So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

    See example below:

    DSCR < 1

    Principal + Interest = $1,700

    Taxes = $350, Insurance = $100, Association Dues = $50

    Total PITIA = $2200

    Rent = $2000

    DSCR = Rent/PITIA = 2000/2200 = 0.91

    Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

    DSCR >1

    Principal + Interest = $1,500

    Taxes = $250, Insurance = $100, Association Dues = $25

    Total PITIA = $1875 Rent = $2300

    DSCR = Rent/PITIA = 2300/1875 = 1.23

    If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

    DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

    Happy to connect to discuss further. 

    [email protected]818-770-0340
    Bright Skyline518 Reviews
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    0Reply
  • Amish Munshi
    Member since 2025 · 12 posts · 0 votes
    1y

    Thank you for reaching out! We understand the unique considerations for U.S. citizens residing abroad, especially when it comes to investment properties and DSCR loans. While many lenders require properties to be held in an entity, there are options available for properties held in a personal name. We would love to assist you in navigating these options and securing the right DSCR loan for your Florida investment. Let's connect to explore the best solutions tailored to your needs!

    0Reply
  • Eduardo J Olmos
    Financial Advisor · Parkland Fl · Member since 2026 · 1 post · 0 votes
    2mo

    Hi Laurens,

    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Laurens Van swol:

    We are exploring the possibility of purchasing an investment property in Florida. As U.S. citizens residing in Europe, we are required by the local tax code to hold the property in our personal name. However, our research indicates that many DSCR lenders require Florida properties to be held in an entity.

    Are there any DSCR lenders that offer loans for properties held in a personal name?

    @Laurens Van swol
    That's a great question. DSCR vesting requirements can vary quite a bit by lender, so it's worth checking individual program guidelines rather than assuming they're all the same. If your tax situation requires personal ownership, there may still be options depending on the lender and loan structure.

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    0Reply
  • James Driscoll
    Banker · MA · Member since 2026 · 120 posts · 32 votes
    2mo

    Good advice above about stress-testing insurance — that point deserves to be front and center for any Florida DSCR deal right now.

    A few things worth layering in from an underwriting perspective:

    **How DSCR lenders actually underwrite Florida insurance costs**

    Most DSCR lenders use the current binder at the time of closing to calculate your debt service coverage ratio. The problem: if your insurer reprices aggressively at renewal 12 months later, your actual cash flow can erode fast, even though the loan is already closed. The advice to model a 50–100% insurance increase over 3–5 years is conservative but realistic for coastal and flood-prone areas. Run your DSCR at that stressed number *before* you commit.

    **The DSCR math you want to pass**

    Most lenders want a minimum DSCR of 1.0x–1.25x (gross rent divided by PITIA — principal, interest, taxes, insurance, and HOA if applicable). Many price better at 1.25x or higher. If your deal is barely at 1.0x today, a significant insurance jump could push you into negative cash flow even though the loan remains current.

    **Personal name vs. LLC**

    Fine to close in personal name on a DSCR — many lenders actually prefer it and rate it slightly better. LLC is doable too; just expect a small rate adjustment and confirm your lender allows it.

    **Florida-specific flags underwriters are watching**

    - Flood zone designation (AE zones add material insurance cost)

    - Wind/hurricane coverage requirements, especially in coastal counties

    - Condo projects require additional due diligence on the HOA financials post-Surfside legislation

    With 31 years in the mortgage business I've worked through a lot of DSCR deals, and the ones that go sideways almost always traced back to insurance and tax assumptions that were too optimistic at the time of analysis. Model the deal conservatively and it'll either hold up — or tell you to walk away, which is equally valuable.

    Happy to help you think through the numbers if you want another set of eyes on it.

    ---

    Jim Driscoll

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