Are There Mortgage Companies That Specialize in Investment Properties in Florida?

Yes. Some Florida mortgage companies specialize in rental and investment property loans, including conventional investment loans that qualify on your income and DSCR loans that qualify on the property’s rent. FLO Mortgage, which lends across Florida and Georgia, offers conventional investment loans and arranges DSCR loans through partner lenders. To find the right company, ask which investor programs they offer, how they count rental income and whether they can close in an LLC.

What does it mean for a lender to specialize in investment property?

Most lenders can write a loan on a rental house. A lender that focuses on investors does more of it and offers more ways to qualify. In practice that means three things:

• More than one program. You can compare a conventional investment loan against a DSCR loan, and sometimes a bank statement loan, for the same property.
• Experience with rental income. The loan officer knows how underwriters count a lease, a rent schedule from the appraiser or short-term rental history.
• Business-purpose options. Many DSCR programs let you close in an LLC, which a standard home loan does not.

Residential investor loans cover properties with one to four units. A building with five or more units usually needs a commercial loan, which works differently.

Which loan types do Florida investors use?

Conventional investment property loans follow Fannie Mae and Freddie Mac rules. The lender looks at your tax returns, your debts and your credit, and it can count documented rent from the property toward your income. Fannie Mae caps the number of financed properties a borrower can have on second home and investment property loans at 10, and the reserve requirement goes up as you add more.

DSCR loans qualify on the property’s cash flow. The lender divides the monthly rent by the monthly payment, including taxes, insurance and any HOA dues. You don’t show tax returns or W-2s. These are non-QM loans for investment property only. Our DSCR loan page answers 19 common questions and has a calculator.

Bank statement loans use your business or personal bank deposits to show income. Self-employed investors whose tax returns show a low income after write-offs often look at these. See our bank statement loan guide.

Investor loans usually ask for a larger down payment and more cash reserves than a loan on a home you live in, and the pricing is higher. A licensed loan officer can show you the figures for your property.

What Florida costs change the numbers on a rental?

Property taxes. A rental doesn’t get the homestead exemption. Florida currently caps yearly assessment increases on non-homestead residential property at 10%, but that cap doesn’t cover the school board portion of the tax bill, and it resets when the property sells. Ask the county property appraiser for the tax estimate at your purchase price, not the seller’s current bill.

Insurance. A rental needs a landlord policy, not a standard homeowners policy. If the property sits in a FEMA special flood hazard area, a federally backed loan requires flood insurance as well. Get insurance quotes before you make an offer, because they feed straight into a DSCR calculation.

Condo rules. Florida’s 2022 condo safety law, as amended since, requires milestone inspections and structural integrity reserve studies for condo buildings three habitable stories or taller. A building with low reserves, pending repairs or a cap on rentals can be hard to finance. Ask for the association’s documents early.

Short-term rental rules. Florida law limits how cities and counties can restrict vacation rentals, but local registration, parking and noise rules still apply, and HOA or condo documents can ban short stays outright. Read both before you count on nightly income.

How do I choose a mortgage company for an investment property?

Ask each lender the same questions and compare the answers in writing:

• Which investor programs can you offer me: conventional, DSCR, bank statement?
• Will you count the lease, the appraiser’s rent schedule or short-term rental history?
• Can I close in my LLC?
• Do you make the loan yourselves or place it with a partner lender?
• Can you send a Loan Estimate so I can compare your offer with another lender’s?

Get Loan Estimates for the same property, loan amount and program in the same week. Rates and pricing can change daily, so quotes taken a week apart don’t compare well.

How does FLO Mortgage handle investment property loans?

FLO Mortgage offers conventional investment property loans and arranges DSCR loans through partner lenders. A licensed FLO loan officer compares the programs for your property, takes your application and stays with you through closing. We’re licensed in Florida, Georgia, Michigan, North Carolina (broker license only), Tennessee and Texas. If you’re refinancing out of a hard-money loan, read our hard-money to DSCR guide.

To talk through a rental you’re buying or refinancing, contact FLO Mortgage or call (386) 882-9980.

Investment property loans in four points

• Some Florida mortgage companies focus on investors and offer conventional, DSCR and bank statement programs.
• Conventional loans qualify on your income. DSCR loans qualify on the property’s rent.
• In Florida, budget for non-homestead property taxes, landlord and flood insurance, condo association health and local rental rules.
• Compare written Loan Estimates from more than one lender for the same scenario.

General information only, not a commitment to lend or financial advice. Subject to credit approval and program guidelines. FLO Mortgage, LLC is a licensed mortgage broker/correspondent, company NMLS #1835856. Joy McCoy Flores, Broker Owner, individual NMLS #1096400. Equal Housing Opportunity. 212 Moody Blvd, Flagler Beach, FL 32136. (386) 882-9980.