Florida's real estate investment market, from Tampa rental properties to Orlando vacation rentals to Miami multi-family units, is active enough that choosing the right loan type matters. DSCR, conventional, and FHA (for owner-occupied multi-family) each have different requirements, pricing, and use cases. Here's how they compare side by side.
Conventional Investment Property Loans
Conventional loans from Fannie Mae and Freddie Mac are available for investment properties but require stronger qualification than for primary residences. Minimum 15 percent down for single-family rentals, 25 percent for 2–4 unit properties. Rates run 0.5 to 1.5 percent above primary residence rates, and you must qualify based on your personal income, credit score, and debt-to-income ratio.
Conventional is also capped at ten financed properties per borrower across all Fannie/Freddie loans. After that, you're in non-agency territory regardless of how strong your profile is.
DSCR Loans: Qualifying on Property Income
DSCR (Debt Service Coverage Ratio) loans underwrite based on the rental income of the subject property rather than the borrower's personal income. If the monthly rent divided by the monthly PITIA, principal, interest, taxes, insurance, and HOA, equals 1.0 or higher, many DSCR lenders approve the loan.
This is the major differentiator. A self-employed investor with aggressive deductions on their tax returns might show $80,000 in taxable income but deposit $250,000. Conventional underwriting uses the $80,000. DSCR looks at whether the rental income covers the payment, and your personal income is irrelevant.
DSCR requirements typically include 20 to 25 percent down, a credit score of 620 to 680 minimum, and a DSCR of at least 1.0, some lenders require 1.1 or 1.25. Rates are higher than conventional, reflecting the non-QM nature of the product. For an overview of how DSCR loan underwriting works, the details matter when you're comparing lenders.
FHA Loans for Owner-Occupied Multi-Family
FHA loans can't be used to purchase a pure investment property, one you don't intend to occupy. But FHA's owner-occupied multi-family exception is significant. If you're buying a 2-, 3-, or 4-unit property and living in one of the units, you can use FHA with as little as 3.5 percent down.
FHA's multi-family path is especially relevant in markets like Tampa and Orlando where multi-family properties trade frequently. The comparison between FHA and conventional becomes meaningful once you know how each one underwrites multi-family income.
Which One Fits Your Situation
Use conventional if you have W-2 income, fewer than ten financed properties, a strong DTI, and at least 15 to 25 percent down. It's the most straightforward product with the lowest rate if you qualify cleanly.
Use DSCR if your personal income documentation doesn't support the loan through conventional underwriting, you're self-employed with significant deductions, or you already have more than ten financed conventional loans. DSCR qualifies on property performance, not yours.
Use FHA if you're buying a 2–4 unit property and will live in one unit, you want the lowest possible down payment, and the property's rental income supports your finances. This is the first-time investor path.
Financing your next Florida investment property?
DSCR loans can qualify you on rental income alone, your tax returns don't have to tell the whole story. Talk to us about which product fits your situation.
Florida Vacation Rental Considerations
Florida's vacation rental market is active in Orlando, Tampa, and coastal markets. DSCR lenders typically use a market rent analysis or short-term rental income projections from services like AirDNA to establish qualifying rental income for vacation rentals. Not all DSCR lenders accept short-term rental income, find one that does if the property is intended for vacation rental use.
In any Florida market, the right loan type depends on how your income is documented, how many properties you already own, and what you plan to do with the property. 14 Days To Close works with investors on conventional, DSCR, and FHA multi-family products. We've closed investor deals in as few as 5 days when the file is ready.
