DSCR Loans, Miami, FL
Miami is a global real estate market. International buyers, domestic relocations, tourism, and a growing tech and finance sector create strong demand for both long-term rentals and short-term vacation
Published by Pinnacle Funding Network | Updated March 2026
Miami is a global real estate market. International buyers, domestic relocations, tourism, and a growing tech and finance sector create strong demand for both long-term rentals and short-term vacation properties.
DSCR loans are particularly popular in Miami because many investors here are foreign nationals, self-employed entrepreneurs, or high-net-worth individuals whose income structures don't fit conventional underwriting.
Miami's international appeal drives demand from both renters and buyers. The city's position as a gateway between the US and Latin America creates a unique tenant pool - professionals, executives, and families who prefer renting in premium locations.
Short-term rental demand is significant in beach-adjacent areas like Miami Beach, Brickell, and Sunny Isles. STR investors can qualify for DSCR loans using AirDNA projections in these high-tourism markets.
South Florida's condo market offers accessible entry points for investors. Studios and one-bedrooms in desirable areas can produce strong rent relative to purchase price, though HOA fees must be carefully evaluated for DSCR impact.
Condo lending restrictions. Post-Surfside regulations mean not all Miami condos qualify for financing. Lenders require current reserve studies, structural inspections, and proof of adequate condo association insurance. Verify condo eligibility before going under contract.
Hurricane insurance. Windstorm coverage is mandatory and expensive. Budget $3,000-8,000+ annually for insurance on Miami investment properties. This is often the biggest variable in the DSCR calculation.
HOA fees on condos. Miami condos often have HOA fees of $400-800+/month. These fees are included in PITIA and can push DSCR below 1.00x on otherwise attractive properties. Run the numbers with actual HOA fees, not estimates.
Foreign national programs. Miami attracts significant international investment. DSCR programs for foreign nationals are available - no US credit history required, though rates carry a 0.50-1.00% premium.
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Property: 2BR/2BA condo in Brickell
Purchase Price: $520,000
Loan Amount (75% LTV): $390,000
Rate: 7.75% fixed, 30yr
Monthly Rent: $3,800
Monthly PITIA:
P&I: $2,798
Property Tax: $430
Insurance: $350
HOA: $650
Total: $4,228
DSCR = $3,800 ÷ $4,228 = 0.90x ✗
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This deal doesn't qualify at standard terms. The $650 HOA is the problem. Options: increase down payment to reduce P&I, target a property with lower HOA, or look for a sub-1.0 DSCR program (available with higher rate and 30%+ down payment).
Best cash flow: Hialeah, Homestead, North Miami, Pembroke Pines. Lower entry prices with solid rental demand.
Premium rentals: Brickell, Edgewater, Coral Gables, Coconut Grove. Higher prices and rents; watch HOA fees closely.
STR opportunities: Miami Beach, Sunny Isles, Fort Lauderdale Beach. Strong STR revenue but verify local regulations.
James Loffredo, Principal
Pinnacle Funding Network
214-846-8602
james@pinnaclefundingnetwork.com
pinnaclefundingnetwork.com
Pinnacle Funding Network is a mortgage broker. PFN does not make loans or credit decisions. Loans are originated through PFN's lending partners. Rates, terms, and programs are subject to change. All loan applications are subject to credit review, property appraisal, and underwriting approval.