Tampa DSCR Loans

Enjoy this guide to DSCR loans in Tampa, or, click the button below to get pre-approved for your own DSCR loan today! We are based in Tampa, Florida and operate nationwide.

What Is a DSCR Loan?

DSCR loans are for purchasing or refinancing rental properties.

The unique benefit of a DSCR loan is that you qualify based on the income produced by the property you are getting the loan for, rather than your personal income.

Most real estate loans are based on personal income, which makes it hard for people who are self-employed, for example.

DSCR loans solve this problem — at least when it comes to rental properties.

DSCR stands for Debt Service Coverage Ratio, which is a fancy way of saying “income compared to the loan payments”.

Want a full breakdown of how DSCR loans work? Read our complete DSCR guide here.

Why DSCR Loans Work Well in Tampa

Tampa Bay is well-known for its vibrant real estate investment market.

In addition to fix-and-flips and new construction developments, rental properties are a huge real estate investment vehicle here.

So Tampa has a lot of real estate investors, and DSCR loans are ideal for investors here because they don’t rely on personal income verification.

Many landlords don’t have traditional personal income because they rely on their rental properties for income.

Even if you do have a personal income, there are other benefits to DSCR loans, like the lack of a limit on the number of DSCR loans you can have.

Traditional banks place strict limits on how many mortgages you can have, putting a hard limit on the size of your rental portfolio!

This is not the case with DSCR lenders.

This makes DSCR loans highly effective for Tampa Bay’s hot investor-friendly market, especially in popular local markets like St. Petersburg, Tampa, Largo, Clearwater, Town n Country, etc. where rental income can often easily cover loan payments.

DSCR Loan Requirements in Tampa

To qualify for a DSCR loan in Tampa, your property typically must generate enough rental income to cover your monthly loan payments.

Most lenders look for a DSCR ratio of at least 1.0, meaning your rental income equals or exceeds your mortgage payments.

If you are a strong candidate, you might be able to get away with a lower DSCR ratio (closer to 1.0), and if your credit history is not as strong, for example, you are more likely to need a higher DSCR ratio (such as 1.5).

Additionally, lenders usually require:

Minimum credit scores typically around 650.
Down payments ranging from 20% to 30%.
Property appraisals to confirm rental income projections.
Adequate property condition, ensuring it’s marketable for rental.

If a property is not yet in rentable condition, you may want to apply for a bridge loan first so you can get the property in shape for renting.

Once it’s ready to rent, you can pursue a DSCR loan for the long-term.

DSCR loans can have loan terms of up to 30 years, like a regular mortgage!

Tampa Real Estate Market Snapshot

Like we said, Tampa Bay is one of the hottest real estate markets in the state of Florida, and in the entire country. Tampa is obviously the heart of that market.

The demand for vacation rentals and long-term rentals alike makes Tampa an ideal location for leveraging DSCR loans to expand your property portfolio.

Here are some details about the Tampa real estate market, updated as of May 2025:

Median Home Price: $380,451

This is down 3% from last year, but this is a normal fluctuation of the real estate market.

If you’re a landlord, you aren’t worried about periodic downward fluctuations of the market, and you might even be excited about them since it makes it easier to add new properties to your portfolio for less money.

The average rent in Tampa is $2,000.

That’s just a few hundred dollars below the state average, and still a very strong rent-roll!

Keep in mind that that number is based on all bedroom numbers and property types, so in addition to that number going up or down depending on which Tampa neighborhood you’re in, it also depends on what kind of property you are renting and how large it is.

How to Pick a Tampa DSCR Lender

Now that you know you a DSCR loan is right for you, you’ll want to make sure you choose the right lender.

Experience and Specialization

Look for local lenders who specialize in investment properties and have extensive experience in the Tampa Bay market.

Among other things, a lender who is in your local market is more likely to have good resources for you if you need trusted referrals for contractors, inspectors, real estate agents, and other specialties.

Transparency and Communication

Opt for lenders who clearly communicate all fees, costs, and loan requirements upfront.

Also prioritize high quality communication in general – the last thing you want is a lender who is hard to get ahold of.

Reputation and Reviews

Check reviews from previous borrowers to gauge reliability and customer service quality.

When in doubt, ask to speak with a previous borrower so you can learn about their experience with the lender.

Speed and Efficiency

A lender with a streamlined application and approval process can significantly speed up your property acquisitions and investments.

Top Tampa Neighborhoods for DSCR Loans

Ybor City

West Tampa

North Hyde Park

East Tampa

S. Tampa, South of Gandy

North Tampa

Frequently Asked Questions

What are the loan terms for a DSCR loan in Tampa?

When it comes to loan terms, most DSCR lenders in Tampa offer terms of up to 30 years.

Your rate will depend on the market, as well as other factors such as the strength of your DSCR ratio and credit history.

What are the requirements for a DSCR loan in Tampa?

In Tampa, most lenders require a DSCR ratio of at least 1.0 to 1.05, likely more if your credit history is not strong.

In addition, most Tampa lenders require a minimum credit score of at least 650, though including a cosigner can help make up for a credit score that is lower.

Can I get a DSCR loan for a property that needs rehab?

You will typically need to do the rehab before you get a DSCR loan on the property.

Luckily you can get a rehab (bridge) loan first so that you can get the property in rentable condition. For example, we offer loans for rehabbing property, with same-day draws, 100% construction budget financing, interest-only repayment, and no pre-payment penalty.

We have helped numerous borrowers structure things so that they can borrow the funds to rehab the property first, rent it out for more money, and finally secure a DSCR loan for the long-term.