Jacksonville is Florida's largest city by land area, with Navy bases, logistics and finance jobs and prices below most of the state. A DSCR rate-and-term refinance replaces short-term financing on a leased Jacksonville rental with long-term, rent-based debt.
In short: LendingStreet's DSCR rate-and-term refinance replaces short-term or older debt on a Jacksonville rental with a long-term loan qualified on rent, not tax returns. Loans start at $150,000 with up to 80% LTV on some programs, a 1.0x standard minimum DSCR, 620 minimum credit, and LLC borrowers are standard. Jacksonville investors renovate older homes in the urban core and on the Westside and Northside, and buy newer homes in Clay, St.
Jacksonville investors renovate older homes in the urban core and on the Westside and Northside, and buy newer homes in Clay, St. Johns and Nassau counties. Military tenants from NAS Jacksonville and Naval Station Mayport add steady demand. A rate-and-term refinance pays off the bridge or rehab loan without taking cash.
With rate-and-term, the new loan covers the payoff and closing costs and nothing more. The payoff is a predictable long-term payment instead of a looming balloon or an extension fee.
Investors buy in Riverside, Avondale, Springfield, San Marco, Murray Hill, Arlington, the Westside, the Northside, Mandarin and the Southside, plus Orange Park, Middleburg, Fleming Island, St. Johns and Yulee.
The stock includes 1920s historic homes in Riverside and Springfield, mid-century block ranch homes across the city, and large numbers of newer subdivision homes. Roof age and wind mitigation drive insurance.
Jacksonville appraisals in newer subdivisions in Clay and St. Johns counties have plenty of comps. In Riverside and Springfield, historic homes vary widely with renovation quality. Rent comparables are strong near the Navy bases and major employers. The appraiser will also note flood zone status and roof age, both of which affect insurance and value. Homes in St. Johns County cost more, which can tighten the ratio even with higher rents.
If the goal is ending a short-term loan, rate-and-term is usually the cleaner path. If you want equity out for another purchase, a cash-out refinance is the tool, at a lower max LTV.
Before choosing, compare the payoff with what the appraisal is likely to show. If the loan you need is under 75% of value, either option works; if it is closer to 80%, rate-and-term may be the only fit.
| Item | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing debt and closing costs | Pull equity out as cash |
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to you | Little or none | Equity above the payoff |
| Seasoning | Varies by program | Varies by program; often longer |
| Best fit | Ending hard money or bridge debt | Funding the next purchase |
This example is illustrative and not a quote. An investor owns a 2006 three-bedroom block home on the Westside, appraised at $288,000, with a $190,000 balance on a short-term loan. Rent is $2,050 a month. The new loan pays off the existing balance and rolls in about $6,900 of closing costs, for a loan of $196,900, or about 68% of value.
On 30-year amortization, estimated principal and interest is about $1,343 a month. Adding taxes of about $330 and insurance of about $220 brings the total to about $1,893, so the DSCR is about 1.08x against the 1.0x standard minimum. Florida's note and mortgage taxes push the rolled-in closing costs higher than in most states. Paying them in cash at closing would lift the ratio a little.
| Item | Amount |
|---|---|
| Appraised value | $288,000 |
| Existing loan payoff | $190,000 |
| Closing costs rolled in | $6,900 |
| New loan amount | $196,900 (about 68% LTV) |
| Estimated principal and interest | $1,343 |
| Taxes, insurance and HOA | $550 |
| Total monthly payment | $1,893 |
| Monthly rent | $2,050 |
| DSCR | About 1.08x |
Florida's non-homestead cap limits annual increases in assessed value on rentals to 10%, but the assessment resets at sale. Duval County is consolidated with the City of Jacksonville, so most addresses pay one combined millage.
Florida charges documentary stamp tax on the note and intangible tax on the new mortgage. Both usually apply to a refinance with a new lender.
Jacksonville has fewer direct hurricane hits than South Florida, but storm surge and river flooding affected low areas during Hurricane Irma. Flood zones near the St. Johns River and creeks require flood insurance, and roof age matters.
Florida limits local bans on vacation rentals, but Jacksonville and the beach towns apply registration and tax rules, and HOAs often limit leasing. Confirm the rules before relying on short-term income. Because Jacksonville is consolidated with Duval County, most rental code enforcement runs through one city office, which keeps rules consistent across the urban core and suburbs inside the county. Clay, St. Johns and Nassau counties each have their own permitting and code offices, and the beach cities set their own short-term rental rules.
Our investor loans are business-purpose loans on non-owner-occupied property. Most borrowers close in an LLC and sign for the loan personally.
The appraisal includes a rent schedule, which sets market rent. The ratio uses the lower of the lease and market rent on many programs, so a lease well above market may not count in full.
Use the form below to get a quote, or call (877) 298-1001. Share the payoff, the leases and your tax and insurance numbers, and we will run the ratio and tell you what the appraisal needs to show. Our Florida rate-and-term page covers the statewide rules.
We look at the whole picture, including whether a sub-1.0 DSCR program, a lower loan amount or a blanket loan across several rentals would fit better than a single refinance.
Florida charges documentary stamp tax on the note and intangible tax on the mortgage. Both usually apply to refinances with a new lender.
Yes. The DSCR uses the lease and market rent, not the tenant's employer.
Yes. We refinance 1-8 unit rentals across the Jacksonville metro.
Yes. Historic district rules may affect repairs and exterior changes, so keep permits and approvals ready.
Up to 80% LTV on some programs, with loans from $150,000 and no stated maximum. The rent must cover the payment at the program minimum, usually 1.0x.
The minimum is 620. Higher scores can improve terms.
The DSCR basics are the same, but max LTV can be lower on 5-8 units and larger balances; it varies by program.
No. DSCR loans qualify on the property's rent. You do not need W-2s or tax returns.
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