By state
DSCR and Investor Loans in Florida
Loan terms are national, but Florida property taxes and insurance move your DSCR. Here is how much, with a worked example.
Florida is a magnet for investors with no state income tax and strong population growth. Investors concentrate in Tampa, Orlando, Jacksonville, and South Florida, and the financing question is the same one everywhere: will the deal cover its own loan once the local costs are counted?
Loan terms are national; Florida changes your costs
The rates, leverage, and minimums on a DSCR loan or hard money loan are set by lenders that operate nationwide, so the ranges in the independent Rate and Terms Survey apply in Florida as anywhere. What Florida changes is your full monthly payment, because two of its parts, property taxes and insurance, are local.
How Florida property taxes and insurance move your DSCR
Property taxes are near the national middle, often around 0.8 to 0.9 percent of value. Insurance is the factor that surprises Florida investors: hurricane and wind exposure push premiums among the highest in the country, and they have risen sharply. Both feed directly into PITIA, the full payment a lender divides into the rent to get your debt service coverage ratio, so a deal in Florida can score differently from an identical property in another state purely on these lines.
A worked Florida example
Take a $330,000 property renting for $2,450 a month, financed with 25 percent down at an illustrative 7.5 percent over 30 years. The loan is $247,500, so principal and interest run about $1,731. Add roughly $248 a month in property tax and $350 in insurance, and the full PITIA payment is about $2,329. The ratio is $2,450 divided by $2,329, or about 1.05, which clears the 1.0 floor, so it finances, with room that depends on the exact numbers. Change the tax or insurance line and watch the ratio move; that is the Florida factor in one number.
Confirm your Florida deal
Run the property through the DSCR calculator with the real county tax bill and a true insurance quote, then check your own profile with the pre-qualifier and read how to qualify. Choose the right loan and confirm the deal qualifies before you apply, which is the whole idea behind The Lender's Lens.