Palm Bay and Melbourne have grown on aerospace and defense jobs, and the barrier island beaches add high-value homes. Jumbo rental loans here usually finance beachside homes or portfolios of newer inland rentals.
In short: LendingStreet finances jumbo DSCR loans from about $1.5M to $5M+ on 1-8 unit investment property in Palm Bay, Melbourne, Viera and the Brevard County beaches, qualified on rent with no W-2s or tax returns. In this market a jumbo balance usually means a beachside home or a portfolio, and Florida wind insurance is often the deciding line. Max LTV varies by program.
Indialantic, Melbourne Beach, Satellite Beach and Cocoa Beach have oceanfront and riverfront homes. Viera has newer master-planned homes.
Palm Bay has large numbers of newer single-family homes, often built on lots in the city's older platted subdivisions.
Melbourne's historic Eau Gallie and downtown areas have older homes and small multifamily, and the Indian River Lagoon adds waterfront homes on the mainland side.
| Property type | Typical areas | Main cost issue |
|---|---|---|
| Beachside home | Indialantic, Melbourne Beach, Satellite Beach | Wind and flood premiums |
| Newer single-family portfolio | Palm Bay, west Melbourne | Number of homes |
| Master-planned home | Viera | HOA and CDD assessments |
Most Palm Bay rentals finance well under $500,000. Jumbo files come from beachside homes or portfolios of newer homes.
Aerospace and defense employers near the Kennedy Space Center and Melbourne support demand.
Inland Palm Bay homes are often newer construction, which helps with insurance and condition, and many lease to families tied to the area's aerospace, defense and healthcare employers. A portfolio of these homes can reach jumbo size with fewer insurance surprises than beachside property.
Beachside homes in Indialantic and Melbourne Beach lease well, but rent is usually a modest share of value, so the example below lands at lower leverage.
Florida's homestead exemption applies only to a primary residence, so rentals pay on full assessed value. Many newer communities carry CDD assessments.
Buyers typically pay doc stamps on the new note and intangible tax on the new mortgage.
Florida limits annual increases on non-homestead property assessments for most levies, but a sale resets the value to market. Budget taxes on your purchase price and current Brevard County millage rather than the seller's bill.
Many newer Palm Bay homes were built on lots platted decades ago in large subdivisions. Check each tax bill for non-ad valorem charges such as stormwater or solid waste fees, which also count in the payment.
The Space Coast faces hurricanes, and beachside homes have storm surge exposure. Wind mitigation features can lower premiums.
Older homes typically need a four-system inspection.
Newer homes built to current Florida building codes usually get better wind pricing than older homes, which is one reason investors like Palm Bay's newer stock. Roof age is a major factor in whether a carrier will write the policy at all.
This example is illustrative and not a quote. An investor buys a beachside home in Indialantic that leases year-round for $9,800 a month. The price is $1,900,000 and rent totals $9,800 a month. Taxes are budgeted at $2,750 a month and insurance at $1,000, plus $300 for flood insurance.
At 60% LTV the loan is $1,140,000. Estimated principal and interest is about $7,680, so the full monthly payment is about $11,730 and DSCR is about 0.84x, below the 1.0x standard minimum. At 45% LTV the loan falls to $855,000, principal and interest to about $5,760, the payment to about $9,810 and DSCR rises to about 1.00x, just at the standard minimum. The lower-leverage version takes $285,000 more cash at closing.
Insurance and flood together are a big share of the payment here.
| Item | 60% LTV | 45% LTV |
|---|---|---|
| Loan amount | $1,140,000 | $855,000 |
| Estimated principal and interest | $7,680 | $5,760 |
| Property taxes (budgeted) | $2,750 | $2,750 |
| Insurance | $1,000 | $1,000 |
| Flood insurance | $300 | $300 |
| Total monthly payment | $11,730 | $9,810 |
| DSCR at $9,800 rent | About 0.84x | About 1.00x |
| Down payment before costs | $760,000 | $1,045,000 |
Brevard County and the beach cities regulate vacation rentals through registration and zoning. Florida limits how far local governments can restrict them.
Check city and HOA rules before relying on nightly income.
Many Viera and Palm Bay communities have HOA covenants with minimum lease terms. Read them before buying several homes in one development, especially if you plan to lease furnished.
A jumbo DSCR loan is the same rent-qualified loan as a smaller one, just bigger: roughly $1.5M to $5M+ for a purchase, a rate-and-term refinance or a cash-out on a high-value 1-8 unit rental. There are no W-2s or tax returns, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available.
What changes with size is the review. Larger balances get a closer look at the appraisal and rent support, reserve requirements are usually higher and maximum LTV is often lower than the 80% purchase and 75% cash-out ceilings on smaller loans. Exact limits vary by program.
Residential DSCR financing covers buildings up to 8 units; 9 units and up is commercial (see /multifamily-loans.html). If you own five or more rentals, a blanket portfolio loan can put them under one closing and one payment, qualified on combined cash flow, with release provisions when a property sells.
Space Coast investors often combine newer homes in Palm Bay into a blanket loan once they own five or more.
Underwriting on a big balance goes smoother with these in hand.
Use the form below or call (877) 298-1001 with the property details and target loan amount. We will size the loan on the rent and show you where the ratio lands at different LTVs.
On some programs, yes, using a third-party revenue projection instead of a lease, as long as city or county rules and the HOA allow short stays at that address.
Wind and flood premiums are part of the monthly payment. On a beachside home, a higher quote can lower the ratio enough to change the loan amount, so get quotes before you set your offer.
Yes. A blanket portfolio loan can cover five or more rentals under one closing and one payment, qualified on the combined rent.
At LendingStreet it is roughly $1.5M to $5M+ on a 1-8 unit rental. DSCR loans start at $150,000 with no stated maximum, and the larger balances get extra review.
You can lower the loan amount, add more down payment, or look at sub-1.0 DSCR programs, which exist for some files. Pricing and leverage on those vary by program.
Yes, 30-year terms are available on jumbo DSCR loans. Maximum LTV and reserves are what usually tighten as the balance grows.
No. Our investor loans are business-purpose loans on non-owner-occupied property. We do not finance a home you live in, full time or part time.
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