If you’re an investor looking to buy rental property in Daytona Beach, you’ve probably heard about DSCR loans, and for good reason. Unlike traditional mortgages that focus on your personal income or tax returns, a Debt Service Coverage Ratio (DSCR) loan is all about the property’s ability to pay for itself.
In simple terms: if the rental income can cover the loan payments, you’ve got a shot.
That’s what makes DSCR loans so attractive for real estate investors, especially in Florida markets like Daytona Beach, where short-term and long-term rentals are in high demand. Whether you’re building your first Airbnb or expanding your rental portfolio, this type of financing could be your best tool for scaling, without the usual W-2s, tax returns, or income docs.
In this article, we’ll break down why Daytona Beach is such a strong market, what to look for in a DSCR lender, and which providers stand out from the rest in 2025.
Why Daytona Beach Is Prime for Rental Property Investment
Daytona Beach isn’t just about fast cars and spring break anymore. Over the past few years, it’s become one of Florida’s most appealing mid-tier markets for both short-term and long-term rental investors.
Here’s why:
- Affordable entry prices: Compared to South Florida or Tampa, Daytona Beach offers more value per square foot. Investors can get in with less capital and still generate strong returns.
- Consistent rental demand: Thanks to tourism, racing events, college traffic, and a growing retiree population, rental demand stays relatively steady year-round.
- Flexible property types: Investors are buying everything from beachfront condos and duplexes to single-family homes and multifamily buildings, all eligible for DSCR financing if they cash flow.
- Short-term rental friendly (in the right zones): With the right permits, Airbnb-style rentals can perform extremely well here, especially during high-traffic seasons like Bike Week, Daytona 500, and summer.
What to Look for in a DSCR Loan Lender
Not all DSCR lenders are built the same, and if you’re investing in a city like Daytona Beach, where rental strategies can vary widely, choosing the right financing partner matters. Some lenders are more flexible with short-term rentals. Others may offer better rates for long-term holds. The key is knowing what to look for before you apply.
Here are the most important factors to consider when comparing DSCR loan lenders:
1. Minimum DSCR Requirements
The Debt Service Coverage Ratio tells lenders how well your rental income covers the cost of the loan. A 1.0 DSCR means the property breaks even. Most lenders want to see at least 1.1 to 1.25, but some will go lower if you have strong credit or extra reserves.
Tip: The higher your DSCR, the more favorable your terms. Aim for 1.25+ if possible.
2. Experience with Florida Investment Properties
Florida has unique insurance costs, property tax variables, and zoning quirks, especially in coastal cities like Daytona Beach. Working with a lender who already understands these dynamics can save you from delays or missed details.
Look for lenders who:
- Offer DSCR loans specifically in Florida
- Understand short-term rental regulations
- Know how to underwrite beach-area properties
3. Support for Short-Term and Long-Term Rentals
Some lenders only work with long-term rentals. Others are open to Airbnbs and vacation properties, as long as you can document income through platforms like Airbnb, VRBO, or historical rental data.
If you’re running or planning a short-term rental, ask up front:
- Do they accept short-term income as qualifying income?
- How do they calculate expected rental income?
4. Loan Terms, Rates, and Fees
DSCR loans often come with slightly higher interest rates than conventional mortgages, but the terms can vary a lot.
You’ll want to compare:
- Interest rates (fixed vs. adjustable)
- Prepayment penalties (many DSCR lenders have 3- or 5-year penalties)
- Down payment requirements (usually 20–25%)
- Origination fees or junk fees
The best lenders are transparent and can break down your cost of capital clearly.
5. Ease of Process and Communication
Some DSCR lenders are quick and responsive. Others are slow, uncommunicative, or overly rigid. If you’re buying in a hot market like Daytona, where timing matters, make sure you’re working with a lender who keeps the process moving.
What to look for:
- Pre-approval timelines
- Investor-friendly underwriting
- Direct access to your loan officer
1. Select Home Loans (Top Local Pick)
When it comes to DSCR financing in Florida, Select Home Loans stands out for one simple reason: they actually take the time to understand your investment goals.
Instead of pushing one lender’s product, they act more like an advisor, shopping across multiple DSCR programs to find the best fit for your property, your timeline, and your strategy. Whether you’re buying a long-term rental, a short-term Airbnb, or adding to a multi-unit portfolio, they’ve helped investors across Daytona navigate the local rules, market quirks, and cash flow requirements.
Why investors choose them:
- Florida-based and investor-focused
- Personalized support for first-time and seasoned buyers
- Strong relationships with lenders who allow short-term rental income
- Fast communication and no hidden fees
Best for: Anyone who wants smart financing advice and more than one option on the table.
2. Griffin Funding
Griffin Funding is a national lender offering DSCR loans throughout Florida, including Daytona Beach. They’re known for flexible terms and allow short-term rentals in many cases, making them a good choice for Airbnb investors.
Pros:
- Competitive rates and 30-year fixed options
- Accepts short-term rental income in underwriting
- Streamlined application process
Things to know: You’ll likely need a DSCR of at least 1.1 and a credit score above 660.
3. Easy Street Capital
Easy Street Capital caters to real estate investors and offers DSCR loans across Florida. They’re a good fit for borrowers who plan to build a rental portfolio and want repeat financing options.
Strengths:
- DSCR loans for both short- and long-term properties
- Flexible with loan amounts and property types
- Common-sense underwriting
Watch for: Higher rates on smaller loans or lower DSCRs.
4. Visio Lending
Visio Lending is one of the most well-known lenders in the DSCR space. They’ve built their entire model around financing rental properties, nothing else. Their streamlined platform makes it easy to get approved if you’re an experienced investor with a clean portfolio.
Best for: Investors with multiple properties or who plan to grow a large rental business
Highlights:
- No personal income verification
- 30-year fixed loans available
- Allows title vesting in LLCs or corporations
Limitations: Not always the best fit for new investors or those with borderline credit.
5. Jumbo Mortgage Source
For investors looking to avoid traditional income documentation and focus purely on property performance, Jumbo Mortgage Source offers DSCR loans throughout Florida, including Daytona Beach. They’re especially useful for investors working with higher-value properties or unique rental structures.
What stands out:
- DSCR as low as 1.0 in some cases
- Tailored for buy-and-hold strategies
- Good option for high-LTV deals
Heads up: May require larger down payments or higher reserves for more complex deals.
Tips for Getting Approved for a DSCR Loan in Daytona Beach
DSCR loans are easier than traditional loans in some ways, but that doesn’t mean they’re a sure thing. Since lenders are looking at the property’s income, not your personal finances, your approval depends on how well that rental performs on paper.
Here are a few tips to help you get approved and land favorable terms:
1. Know Your DSCR Before You Apply
Don’t wait for the lender to tell you whether your numbers work. Run the math yourself:
DSCR = Gross Monthly Rent ÷ Monthly Mortgage Payment (PITI)
If the result is 1.25 or higher, you’re in great shape. Some lenders go as low as 1.0 or even 0.75 (with higher rates or more down), but 1.2+ opens the best options.
Example: If your rental brings in $2,500 a month and your mortgage payment is $2,000, your DSCR is 1.25.
2. Keep Your Rent Roll Tight
For long-term rentals, provide a signed lease or rent roll showing current tenants and amounts paid. For short-term rentals, use Airbnb or VRBO income reports, 12-month trailing statements, or appraiser rent projections (if you don’t have a history yet).
Clear documentation helps your lender move faster and avoid pushback during underwriting.
3. Watch Your Credit Score
While DSCR loans don’t rely on your tax returns or DTI, most lenders still check your credit. The sweet spot is 680 and up, but some lenders (including those Select Home Loans works with) can go down to 620–640, depending on the deal.
Bonus tip: Fewer inquiries, low credit card balances, and no recent late payments all make your file more appealing.
4. Be Ready to Put 20–25% Down
DSCR loans typically require a larger down payment than conventional loans, 20% is common, but high-performing properties can sometimes go lower. If you want to avoid paying points or higher rates, bring more cash to the table.
5. Work With a Lender Who Knows the Market
Local market knowledge matters. Daytona Beach has unique zoning rules, insurance quirks (especially near the coast), and varying rent expectations depending on the neighborhood. A national lender might not understand all that, but a local-focused group like Select Home Loans will.
Final Thoughts: Using DSCR Loans to Grow in Daytona Beach
The real estate market in Daytona Beach offers a rare combination of affordability, strong rental demand, and long-term growth potential. Whether you’re starting with your first rental or adding to an existing portfolio, DSCR loans make it possible to scale without the usual red tape.
Instead of getting buried in W-2s, tax returns, and income calculations, you’re judged on one simple question: Does the property cash flow? If it does, you’ve got a shot.
That’s what makes DSCR loans so valuable for investors, and why choosing the right lender makes all the difference. Some lenders will treat you like a transaction. Others will dig into your deal, help you structure it properly, and make sure you don’t run into surprises at closing.
That’s where Select Home Loans stands out.
They’re not just here to hand you a rate sheet and move on. They’ll walk you through your options, help you understand what’s realistic, and, if needed, find a lender that fits your exact strategy, whether it’s short-term rentals, long-term holds, or something in between.
Want to see what your property qualifies for?
Reach out to Select Home Loans for a free consultation. No pressure. No fluff. Just clear answers, multiple lending options, and local expertise built for Florida investors.
