Florida DSCR Loan Lenders for Long-Term and Short-Term Rentals

RCN Capital, a national direct private lender, funded a $1,043,285 1st lien position equity cash-out loan secured by a 4-unit residential property in St. Petersburg, FL. The property value was estimated at $1,630,00 so our loan-to-value was 64%. We paid off a previous loan balance of $891,094 and provided some cash-out. The Borrower is an experienced investor who has owned the property since 2020. It was leased for $10,040 per month which is slightly less than the market rates per the appraiser’s estimate ($10,300). This resulted in a 1.10 DSCR (debt service coverage ratio). The property was appraised for $1,630,000.00 as-is, confirmed by a Collateral Desktop Analysis. The Sponsor had excellent credit with a mid-score of 735 and bank statements that reflected a sufficient balance to close the deal. The loan was structured and priced in accordance with our qualification model. The 4,247-square-foot subject property was in excellent condition. The Borrower plans to continue leasing the property and hold it for a long term. The interest rate was 7.41% with amortized payments and an adjustable rate. We charged 2% origination points. The loan term was set at 30 years. This DSCR refinance loan was funded in September 2023.

Easy Street Capital, a direct private real estate lender, funded a $1,105,000 1st lien position DSCR refinance loan secured by an SFR short-term rental home in Vero Beach, Florida. The loan-to-value was 58.2, and the interest rate was 8.875% fixed for a 30-year term. It was cash-flow positive with a healthy debt service coverage ratio. This trophy vacation home features a sizable in-ground pool and surrounding patio, first-story and second-story balconies, and a screened-in porch. Outside the house, the property includes an oversized driveway with room for up to five cars in the front and a three-car garage in the rear. The housing market in Vero Beach is strong with stable values, a shortage in housing supply, and under three months of marketing time. Vero Beach is about equal distance from West Palm Beach and Orlando and is on the eastern front of the Florida panhandle, making it an excellent spot for long-term beach-loving tenants with medical, recreational, and professional amenities. This STR refinance loan was funded in October 2023. 

RCN Capital, a national direct private lender, funded a $329,631 1st lien position long-term rental loan for the acquisition of a single-family home in Westlake, Florida. We funded 70% of the $447,683 purchase price, while the Borrower contributed 30% cash at closing. The subject property was appraised for $472,000 As-Is, and a CDA (Collateral Desktop Analysis) confirmed that the value was acceptable/within allowable variance. The market rental rate per the appraiser’s estimate was $3,310.  The Sponsor on the loan had good credit; their bank statements reflected solid liquidity which was sufficient to meet the reserve requirement. The total loan amount is 69.84% loan-to-value and 73.63% loan-to-cost with a 1.10 DSCR. The subject property was in excellent condition and vacant at closing. It is approximately 1,978 square feet. The interest rate was fixed at 6.72% with amortized payments, and we charged 4% origination points. The loan term was set at 30 years. This DSCR long-term rental loan was funded in August 2023.

RCN Capital, a national direct private lender, funded a $407,750 1st lien position long-term rental loan for the acquisition of a duplex in Deerfield Beach, FL. We funded 70% of the $582,500 purchase price, while the Borrower contributed 30% cash at closing. The subject property was in excellent condition and was appraised for $583,000 As-Is which is in line with the collateral desktop analysis (CDA). The total loan amount was 70.00% LTC & 69.93% LTV with a 1.12 DSCR. The Borrower had good credit with a mid score of 772 and bank statements that reflected sufficient liquidity. They plan to continue leasing the property long-term. The subject property was approximately 2,585 square feet set in a 7,400-square-foot lot. It was tenant-occupied at closing. The interest rate was fixed at 7.37% with amortized payments. We charged 2% origination points. The loan term was set at 30 years. This DSCR rental purchase loan was funded in January 2023.

RCN Capital, a national direct private lender, funded an $842,921 DSCR long-term refinance loan secured by a single-family residence in Pompano Beach, FL. The Borrower is an experienced investor looking to cash out on the subject property and pay off an existing lien. The subject property’s value was approximately $1,900,000 as-is, subject to a Collateral Desktop Analysis, so the loan-to-value for our 1st mortgage was 44%. We paid off a previous loan balance of $550,000 and provided over $290,000 in cash-out funds. The subject property was being leased for $9,000 per month which was above the market rates as per the appraiser’s estimate of $8,500. The Sponsor had good credit with a mid-score of 693 and bank statements that reflected sufficient liquidity which met our reserve requirement. The total loan amount was 43.3% LTV with a 1.10 DSCR. The 9600-square-foot property was in excellent condition. The fixed interest rate was 7%. We charged 4% origination points. The loan term was set at 30 years. This DSCR refinance loan was funded in October 2022.

RCN Capital, a national direct private lender, funded a $348,000 DSCR long-term rental loan secured by a single-family residence in Sarasota, Florida. The subject property’s value was $435,000 as-is so the loan-to-value for our first mortgage was 80%. The Borrower initially purchased the property for $275,000 and completed a $50,000 rehab. Our loan paid off the previous loan balance of $327,000. The Borrower was an experienced repeat investor and planned to hold it as a long-term rental. The deal closed with 6.2583% fixed interest rate and 4 points for origination. The loan term was set at 30 years with a 5-year prepayment period. They were delayed finding a tenant due to the hurricane at the time, but the market rent was estimated at around $3,000 which resulted in a debt service coverage ratio (DSCR) of 1.19. The Borrower had a mid-score of 758 and a bank statement that reflected sufficient liquidity. The approximately 9,147-square-foot subject property was newly renovated and vacant at closing. This DSCR rental refinance loan was funded in November 2022.

i Fund Cities (iFC), a direct lender, funded this 30-year fixed mortgage loan for an experienced investor in the on-fire Delray Beach, Florida real estate market who wanted to use the property for short-term rentals. The investor currently has more than a half dozen rental properties in the booming beach town that sits about halfway between West Palm Beach and Fort Lauderdale. The client came to i Fund Cities to fund a property in Delray Beach that he intended to use as a short-term rental. Although some lenders do loan on short-term rentals, the property type is considered more of a risk, and so lender loan criteria tend to be more stringent than a long-term single-family rental loan. In this case, the client was getting resistance from other lenders because the home had the furniture included in the deal. He needed a lender who would loan on a home that was a turnkey short-term rental. i Fund Cities offered the borrower 80% loan-to-value on the appraised value of the property.

Key Loan Benefit to Borrower:

The client acquired a new investment property that will cash flow up to $6,000 a month in short-term rentals.

Customer Feedback:

Says iFC Loan Officer Andrew, “This client told me he was ecstatic to get 80% leverage on his property with no lease (since he was doing short-term rentals) and he was very happy that we closed without changing the originally quoted terms!”