A Smarter Way to Finance Your Florida Investment Property

When it comes to real estate investing, finding the right financing can make all the difference. Traditional mortgages often involve strict income verification, tax documentation, and a long approval process. But what if you could qualify for a loan based on your property’s income potential instead of your personal income?

That is exactly what a DSCR loan offers.

At American Mortgage Services, we specialize in Florida DSCR loans designed for investors who want flexibility, faster approvals, and a simpler way to expand their rental portfolios.

Understanding the DSCR Concept

DSCR stands for Debt Service Coverage Ratio, a financial metric that measures how well your rental income covers your loan payments.

The formula is simple:
DSCR equals Net Operating Income divided by Total Debt Payments.

If your DSCR is one or higher, your property generates enough income to cover its mortgage payments. The higher the ratio, the stronger your cash flow and the better your financing options.

Unlike conventional mortgages that focus on your job history, income, or tax returns, a DSCR loan focuses on the property’s income performance. This makes it ideal for investors, self-employed professionals, and entrepreneurs whose financial situations do not fit traditional mortgage requirements.

How a Florida DSCR Loan Works

A Florida DSCR loan allows you to qualify based entirely on the income potential of your investment property.

Here is how it generally works:

• The lender reviews the property’s actual or projected rental income.
• Operating expenses such as maintenance, insurance, and taxes are subtracted to determine the net operating income.
• The net operating income is divided by your total annual loan payments to calculate your DSCR.
• If the ratio meets or exceeds the lender’s minimum requirement, typically between one and one point two five, you may qualify for the loan.

This streamlined process eliminates the need for employment verification, tax returns, or income documentation.
You can find more information on our Florida DSCR Loan page.

DSCR Loans Compared to Conventional Mortgages

The difference between a DSCR loan and a conventional mortgage is simple. A DSCR loan focuses on property income, while a conventional mortgage focuses on personal income.

With a DSCR loan, there is no employment verification, no tax return requirement, and no personal income calculation. You can close in the name of an LLC or corporation and use the property’s cash flow to qualify.

Conventional loans, on the other hand, require full documentation of income, employment, and tax history. They are typically used for primary or secondary homes, not for investment properties.

Key Benefits of a DSCR Loan

When you apply through American Mortgage Services, you gain access to a number of advantages:

• No income or job history required
• Qualification based on property cash flow only
• Loan amounts up to five million dollars
• Down payments starting at twenty percent
• Short term rental income such as Airbnb allowed
• Interest only payment options available
• Close under an LLC or corporation
• Unlimited cash out refinancing
• Non warrantable condo investments accepted
• First time investors eligible
• Credit scores starting at six hundred forty

These benefits make DSCR loans an excellent option for investors who want flexibility and faster approvals while maintaining strong property-based financing.

Example: How DSCR Is Calculated

Imagine you are purchasing a Florida rental property that earns three thousand dollars per month in rent, which equals thirty six thousand per year.

Your annual loan payments, including principal and interest, total thirty thousand.

Your DSCR would be thirty six thousand divided by thirty thousand, which equals one point two.

This means your property generates twenty percent more income than needed to cover the loan payments. Most lenders consider this a solid ratio for approval.

If your DSCR is lower than one, you may still qualify by increasing your down payment or improving the property’s rental income.

Who Should Consider a DSCR Loan

DSCR loans are a great fit for:

• Real estate investors looking to grow their rental portfolios
• Self employed borrowers or business owners with variable income
• Airbnb and short term rental hosts
• Investors who want to refinance existing rental properties
• First time investors entering the market

If you have been turned down for a conventional mortgage or simply want a more flexible financing solution, a DSCR loan can help you achieve your goals.

Qualification Requirements

To qualify for a Florida DSCR loan, you typically need:

• A minimum DSCR of one point zero
• A credit score of six hundred forty or higher
• A down payment of at least twenty percent
• Proof of current or projected rental income
• The property must be designated for investment use
• You can also close the loan under an LLC or corporation for added flexibility and asset protection.

If you are ready to get started, submit your information here.

Why Choose American Mortgage Services

At American Mortgage Services, we do more than just offer loans. We help you create financing strategies that fit your investment goals.

Our experienced team will guide you through:

• Calculating your DSCR and evaluating property performance
• Securing competitive rates and flexible terms
• Navigating the lending process for a smooth closing
• Finding solutions tailored to your investment strategy

Our goal is to make your real estate financing experience clear, efficient, and designed for long term success.

If you are ready to invest in Florida real estate or expand your current portfolio, a DSCR loan could be the key to achieving your next milestone.

Learn more about how DSCR loans work and explore your options with American Mortgage Services.

At We Get It Closed, we are committed to helping investors make smart financial moves and close with confidence.