Florida investors who bought and renovated with hard money or a bridge loan need a long-term exit, and the insurance bill often decides how that exit looks. A DSCR rate-and-term refinance replaces the short-term loan with a fixed payment qualified on the rent.
In short: Yes, LendingStreet finances DSCR rate-and-term refinances on 1-8 unit investment properties in Florida, up to 80% LTV on some programs, qualified on the property's rent with no W-2s or tax returns. The new loan pays off your existing hard money, bridge or higher-rate loan plus closing costs, with only a small amount of cash back allowed on most programs. Our investor loans are business-purpose loans on non-owner-occupied property, starting at $150,000 with a 620 minimum credit score. In Florida, documentary stamp and intangible taxes on the new loan and the wind and flood insurance quote are the items to price first.
A rate-and-term refinance pays off the loan you have now and replaces it with a new one, changing the rate, the term or both, without pulling out equity. The new balance usually covers the payoff plus closing costs, and most programs allow only a small amount of cash back at closing. The exact allowance varies by program.
Because you are not taking cash out, some programs allow a higher ceiling than a cash-out refinance, up to 80% LTV on some programs. 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. The standard minimum is 1.0x.
Florida rental stock includes concrete block single-family homes from the 1950s through 1980s, newer suburban homes, townhomes and a large condo inventory. Investors in Jacksonville, Tampa, Orlando and smaller markets often buy dated block homes with hard money, renovate and refinance. Others hold higher-rate loans from recent years and want to fix the payment for 30 years.
In each case the goal is the same: a stable, long-term payment the rent can carry, without raising the balance. Keeping the loan close to the payoff also leaves more room under the ratio if taxes or insurance rise after closing.
Hard money and bridge loans are built to be replaced. Once the rehab is done and the unit is leased, a rate-and-term DSCR refinance pays off the short-term loan and sets a 30-year payment. Start the refinance a couple of months before maturity so appraisal and title do not run up against the deadline.
If you bought recently, expect the lender to look at your purchase price and documented improvements, not just the new appraisal. Seasoning requirements differ by program, and they can change how much of the after-repair value you can use.
Florida charges documentary stamp tax on promissory notes and an intangible tax on new mortgages, both figured on the loan amount. On a refinance, how much applies can depend on whether the new loan includes new money and how the payoff is structured. These taxes are a real cost, so get an estimate from the title company before you lock.
Florida closings are handled by title companies or attorneys. If you also deed the property into an LLC, documentary stamp tax on the deed can apply depending on the transfer, so ask before changing title.
Insurance is the line that most often decides Florida DSCR files. Wind coverage, roof age and wind mitigation features affect premiums, and older roofs can limit carrier options. Flood zones require flood coverage, which counts in the payment too. Get a fresh quote, not last year's renewal.
Rentals do not get Florida's homestead exemption or its assessment cap for homes owners live in, so taxes on a rental can be higher than a seller paid. Condo and HOA dues have risen in many older buildings after recent reforms, and they count in the ratio.
This example is illustrative and not a quote. An investor owns a concrete block single-family rental in Jacksonville appraised at $330,000. The existing hard money loan from the purchase and rehab has a payoff of $240,000, costs about $2,200 a month interest-only and matures in 3 months. Rent is $2,300 a month, and taxes, insurance and any HOA dues run $520 a month.
Rolling about $7,500 of closing costs into the loan gives a new balance of $247,500, or about 75.0% LTV, inside the 80% ceiling some programs allow. On a 30-year term, principal and interest is about $1,688, so the full payment is about $2,208 and the DSCR is about 1.04x. The short-term maturity is gone and the payment is fixed. That ratio is close to the 1.0x minimum, so a higher insurance quote or tax bill could push it under; check both before you apply.
| Item | Amount |
|---|---|
| Appraised value | $330,000 |
| Existing loan payoff | $240,000 |
| Closing costs rolled in | $7,500 |
| New loan amount | $247,500 |
| Loan-to-value | 75.0% |
| Principal and interest (30 years) | About $1,688 |
| Taxes, insurance and HOA | $520 |
| Total monthly payment | About $2,208 |
| Monthly rent | $2,300 |
| DSCR | About 1.04x |
If you need equity out of the property, a cash-out refinance is the tool. If you only need to retire the existing loan, rate-and-term usually offers more leverage room and a lower balance.
The underwriting is the same, but the outcome is not. A larger cash-out balance raises the payment and lowers the ratio, so ask for both options on the same property and compare the payment, the DSCR and the cash you would net side by side.
| Feature | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing loan and costs | Pay off loan and take equity |
| Maximum LTV | Up to 80% on some programs | Up to 75% |
| Cash at closing | Small allowance, varies by program | Up to the LTV limit |
| Minimum DSCR (standard) | 1.0x | 1.0x |
| Minimum credit score | 620 | 620 |
| Income documents | Rent only, no W-2s or tax returns | Rent only, no W-2s or tax returns |
Jacksonville, Tampa, Lakeland and Orlando are the core long-term rental markets, with plenty of single-family and small multifamily. Ocala, Palm Bay and the Space Coast offer lower prices. South Florida carries higher values, more condos and tighter ratios. Beach and theme park areas have large short-term rental markets, and some cities and counties regulate STRs, so check local rules.
Having these ready keeps the appraisal, title and underwriting moving, especially if a short-term loan is nearing maturity. Call (877) 298-1001 or use the form below to get a quote.
Yes. LendingStreet offers rate-and-term DSCR refinances on 1-8 unit investment properties in Florida, from $150,000 with no stated maximum, qualified on the property's rent.
Florida documentary stamp and intangible taxes apply to new notes and mortgages. On a refinance, the amount can depend on new money and structure. Your title company can estimate it.
Only a small amount on most programs, and the allowance varies by program. If you want to pull equity out, a cash-out refinance up to 75% LTV is the better fit.
Roof age and wind mitigation features drive insurance premiums and carrier options. Since insurance sits inside the DSCR payment, an older roof can lower the ratio.
Often, yes, but seasoning rules vary by program. Some use the new appraised value; others cap the loan near your cost basis if you bought recently.
Often, yes. Expect a condo questionnaire and a review of the association's budget, reserves and any special assessments.
Standard programs require a minimum of 1.0x, meaning rent covers the full payment. Sub-1.0 programs exist for properties that fall short, with tighter terms.
Yes. LLC borrowers are standard on DSCR loans. Expect to provide the operating agreement, articles of organization and an EIN letter, and to sign for the loan personally.
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