Plenty of Florida investors are sitting on equity they built in Tampa, Orlando, Jacksonville or South Florida. A DSCR cash-out refinance turns that equity into cash using the property's rent, not your tax returns.
In short: Yes, LendingStreet finances DSCR cash-out refinances on investment property in Florida, up to 75% LTV, qualifying on the property's rent. The new payment, including Florida's often high insurance premium, has to be covered by the rent at the program minimum, which is 1.0x on standard programs. No W-2s or tax returns are needed, LLC borrowers are standard and the minimum credit score is 620. Condos, flood zones and new-money mortgage taxes are the Florida-specific items to check early.
You take a new loan for more than you owe, pay off the existing mortgage and keep the difference. The new loan is sized off the appraised value, up to 75% LTV on cash-out, compared with up to 80% on a purchase.
Qualification runs on the debt service coverage ratio: the property's rent divided by the new monthly payment, including principal, interest, taxes, insurance and any HOA dues. Because cash-out raises the balance, it lowers the ratio, so the post-cash-out number is the one that has to clear the minimum.
Florida homeowners and wind coverage costs are well known among investors, and coastal or older properties tend to sit at the high end. On a DSCR loan that premium sits inside the payment, so a higher quote lowers the ratio dollar for dollar.
Get a current insurance quote before you apply rather than using last year's renewal. If the property is in a flood zone, the lender will require flood coverage and that premium counts too. Roof age and wind mitigation features often affect what carriers will quote.
Condos are a large share of Florida's rental stock, especially in Miami-Dade, Broward, Palm Beach and along the Gulf coast. Since the 2021 Surfside collapse, Florida has tightened inspection and reserve requirements for many older condo buildings, and some associations have levied large special assessments.
For a cash-out, expect the lender to review the condo questionnaire, the association's budget and reserves and any pending assessments. Rising HOA dues also come straight out of the ratio. Condotels and non-warrantable buildings have fewer options, and terms vary by program.
Florida charges documentary stamp tax on new promissory notes and an intangible tax on new mortgages. On a refinance, how much applies can depend on how much new money is involved and how the transaction is structured.
These taxes can be a meaningful line on a cash-out, so ask your title company for an estimate early and confirm the final figures with them. Your term sheet will show lender and closing costs separately.
This example is illustrative and not a quote. An investor owns a single-family rental appraised at $400,000 with an existing loan of $180,000. Rent is $3,000 a month, and taxes plus insurance run $650 a month.
At 75% LTV the new loan is $300,000. After paying off the $180,000 loan, that leaves $120,000 before closing costs. At a sample rate of 7.25% on 30-year amortization, principal and interest is about $2,047, so the total payment is about $2,697 and the DSCR is about 1.11x, above the 1.0x standard minimum. If the insurance quote came in $300 a month higher, the ratio would drop to about 1.0x, which is why the quote matters.
| Item | Amount |
|---|---|
| Appraised value | $400,000 |
| Max loan at 75% LTV | $300,000 |
| Existing loan payoff | $180,000 |
| Cash before closing costs | $120,000 |
| New monthly payment (P&I + taxes and insurance) | About $2,697 |
| DSCR at $3,000 rent | About 1.11x |
Tampa, Orlando and Jacksonville draw long-term rental investors looking at single-family and small multifamily. Miami and the rest of South Florida lean toward condos and higher prices, where the ratio is usually tighter. Central Florida near the theme parks and the Gulf and Atlantic beach towns have large short-term rental markets.
If the property is a vacation rental, short-term rental DSCR programs can qualify on revenue, with rates from 6.49% for qualified borrowers. Check local STR rules in your city or county before relying on nightly income.
Pulling these together before you apply keeps the appraisal and underwriting moving.
Yes. LendingStreet finances DSCR cash-out refinances on non-owner-occupied investment property in Florida, up to 75% LTV, with loans starting at $150,000.
Up to 75% of the appraised value, minus your existing loan payoff and closing costs. The rent also has to cover the new payment at the program minimum, which can limit the amount.
Often, yes, but the building matters. Expect a condo questionnaire and a review of reserves, inspections and special assessments. Condotels and non-warrantable buildings have fewer options.
Seasoning varies by program. Some allow cash-out with little or no seasoning; others want several months of ownership or cap the loan at purchase price plus documented improvements.
Florida's documentary stamp and intangible taxes can apply to new notes and mortgages, and on a refinance the amount often depends on the new money involved. Confirm the figure with your title company.
No. The loan qualifies on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
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