Florida landlords have more financing options than most realize. The right loan depends on whether you're buying, refinancing, cashing out equity, or structuring a portfolio. This guide covers every major rental property loan type available in Florida and when to use each one.
Types of Rental Property Loans in Florida
Florida rental property investors can access these primary loan structures:
DSCR Loans — For Qualifying on Rental Income
No W-2s. Qualifies based on property cash flow. Most popular with self-employed investors, LLC investors, and those with 10+ properties. Rates: 6.5–8.5%. Available statewide.
Conventional Investment Loans — For W-2 Investors Under 10 Properties
Lowest rates (6–7%). Requires full income documentation. Caps at 10 financed properties. Best for investors early in portfolio building who have clean W-2 income.
Cash-Out Refinance — For Accessing Equity
Replace existing mortgage with larger loan. Access appreciated equity without selling. Available through both conventional and DSCR programs. Up to 75–80% LTV.
Portfolio Loans — For Multiple Properties
Blanket loan covering multiple properties under a single note. Simplifies financing for investors with large portfolios. Typically 5+ properties minimum.
Florida Rental Market Snapshot
Florida's rental market fundamentals support long-term investor confidence:
- No state income tax — favorable for landlords and tenants alike
- Strong in-migration: Florida added 400,000+ residents in 2023–2024
- No rent control (state law prohibits local rent control ordinances)
- Landlord-friendly eviction process relative to many other states
- Year-round demand — no seasonal rental market collapse
- Insurance costs rising — factor actual premiums into DSCR calculations
Choosing the Right Florida Rental Loan
Match your situation to the right loan type:
| Your Situation | Best Loan Type |
|---|---|
| First investment property, W-2 income, under 10 properties | Conventional investment loan |
| Self-employed, no clean W-2 income | DSCR loan |
| At 10-property conventional limit | DSCR loan |
| Want to close in LLC name | DSCR or BPL loan |
| Property appreciated, need capital | DSCR cash-out refinance |
| Portfolio of 5+ properties to refinance | Portfolio/blanket loan |
| Short-term rental (Airbnb/VRBO) | DSCR loan (STR program) |
Frequently Asked Questions
For most investors, DSCR loans offer the best combination of flexibility and availability. They don't require W-2s or tax returns, allow LLC vesting, have no portfolio cap, and can close in 21-30 days. Conventional loans offer lower rates but require income documentation and cap at 10 properties.
Yes -- through a DSCR loan. Qualification is based on the property's rental income relative to the mortgage payment. No personal income documentation is required at any stage.
For conventional investment loans: 15-25% depending on property type and number of financed properties. For DSCR loans: 20-25%. For short-term rentals: 25% minimum with most programs.
Yes. DSCR cash-out and rate-and-term refinances are available without income documentation. Requirements include 6-month seasoning, minimum 1.0 DSCR at new loan amount, and maintaining 75-80% LTV for cash-out.