Florida’s booming rental market has opened the door for investors and property owners to grow their portfolios without relying on traditional income documentation. If you’re asking whether you can qualify for a mortgage using only rental income—the short answer is: yes, you can.
With the rise of alternative loan products, especially in investor-friendly states like Florida, lenders are now offering financing based solely on the income generated by the property itself. Whether you’re building a short-term rental business or buying your next long-term investment property, using rental income as your primary qualifying factor is not only possible—it’s becoming more common.
Let’s walk through how it works, which loans allow it, and what you’ll need to qualify.
Can You Get a Mortgage Using Only Rental Income?
Yes, but not with just any loan program.
If you’re expecting to walk into a big-name bank and qualify for a 30-year fixed mortgage based only on your property’s rental history—without showing tax returns, pay stubs, or W-2s—you’ll likely hit a wall.
But through the right lenders and loan programs, especially those tailored for real estate investors, it’s entirely possible to qualify using the cash flow of the property alone. These mortgage programs look at whether the property can support itself financially, not whether you have a day job or a W-2.
This is a major win for:
- Self-employed investors
- Retirees with large portfolios
- Full-time landlords
- Borrowers with strong assets but unconventional income
Loan Programs That Allow Rental Income-Only Qualification
Not all mortgages are created equal. Here’s a breakdown of the loan types that support qualifying without W-2 income and rely primarily on rental income:
DSCR Loans (Debt Service Coverage Ratio Loans)
This is the most common and most straightforward option. DSCR loans are designed for real estate investors who want to qualify based on the income generated by the property—not their personal income.
Instead of analyzing your debt-to-income ratio, lenders look at the property’s rental income vs. the mortgage payment. If the rent covers the loan costs, you’re in a good position.
Typical DSCR loan highlights:
- Minimum DSCR: 1.00–1.25
- Credit score requirement: 620–700+
- Down payment: 20–25%
- No personal income docs needed
- Works for single-family, multifamily, condos, and more
Conventional Loans (With Rental Income Documentation)
In some cases, Fannie Mae and Freddie Mac will allow projected rental income to help you qualify for a mortgage. But this typically requires:
- You already own a rental property
- You’re purchasing a new one as an investment
- You have lease agreements or a rental history
This path is more paperwork-heavy than DSCR loans and may still require tax returns, depending on your lender.
Bank Statement & Asset-Based Loans
These are alternative loans where lenders review bank deposits or assets in place of traditional income verification. While not strictly “rental income only,” they’re often used by landlords with multiple properties or self-employed income tied to real estate.
This route is ideal for investors with strong cash flow but inconsistent or unconventional income documentation.
What Is a DSCR Loan and How Does It Work?
DSCR stands for Debt Service Coverage Ratio. It measures how well a property’s rental income covers its mortgage payment.
Here’s how it works:
- If your property brings in $4,000 in monthly rent and your total mortgage payment (principal, interest, taxes, and insurance) is $3,200, your DSCR is 1.25.
- A DSCR of 1.0 means the property breaks even
- Lenders usually want to see at least 1.0–1.25, depending on your credit and loan amount
DSCR loans do not require:
- W-2s
- Personal income verification
- Tax returns
They are based entirely on how well the property performs. That’s why they’re a go-to product for Florida investors who want speed, flexibility, and the ability to scale without red tape.
Requirements to Qualify Using Rental Income in Florida
Even without personal income docs, you’ll still need to meet certain requirements. Here’s what most lenders will look for:
- Minimum credit score: Generally 660+, though some go lower with compensating factors
- Down payment: 20% minimum is typical, sometimes more for short-term rentals
- Proof of rental income: Lease agreements, rent roll, or appraiser’s market rent analysis
- Property type: Single-family, duplex, triplex, or fourplexes are common. Some condos and townhomes may also qualify
- Reserves: Many lenders require 3–6 months of mortgage reserves
In Florida, where rental demand is high and market rents are strong, many properties exceed DSCR requirements with ease—especially in short-term rental hotspots.
What Counts as Qualifying Rental Income?
When applying for a mortgage using only rental income, what actually counts toward qualification depends on the loan program and the lender. Here’s how it typically breaks down:
Current Lease Agreements
If the property is already rented, lenders will usually accept signed leases as proof of income. For DSCR loans, they’ll compare the lease income against the projected mortgage payment.
Market Rent via Appraisal (Form 1007)
If there’s no lease in place, lenders may use a rental market analysis from the property appraisal. This shows the estimated rent the property could earn based on similar homes in the area.
Short-Term Rentals (Airbnb, VRBO, etc.)
Some lenders allow income from short-term rentals, but the requirements are stricter. You may need a 12-month income history, proof of consistent bookings, and bank statements showing deposits.
Multiple Properties
If you’re applying using income from more than one property, lenders will assess the combined rental income vs. the combined monthly mortgage obligations. Some DSCR lenders will underwrite your entire portfolio if you’re refinancing or doing a blanket loan.
Benefits of Qualifying with Rental Income Only
Getting approved without personal income documents isn’t just possible—it can be the most efficient way for serious investors to grow their portfolios. Here’s why:
No W-2s or Tax Returns Needed
This is huge for self-employed borrowers, those with complex tax situations, or investors who want to keep things simple.
Focuses on the Property, Not You
DSCR loans treat the property like a business. If it cash flows, it qualifies. You’re not being judged on job history, employer tenure, or traditional income-to-debt ratios.
Faster Approval Process
Less paperwork often means quicker turnarounds. Many DSCR loans close in 3–4 weeks—sometimes faster with an experienced lender.
Scalability for Investors
Once you understand the DSCR model, you can repeat it across multiple properties, using income from one investment to help finance the next.
Limitations and Risks to Be Aware Of
While qualifying with rental income has serious upsides, there are also things to watch out for:
Higher Interest Rates
Because DSCR loans are considered riskier by lenders, they typically come with higher rates than conventional loans—often 0.5% to 1.5% higher.
Larger Down Payments
Expect to put down at least 20–25%. Some lenders may require 30% for certain property types or if your DSCR is on the lower end.
Stricter Property Guidelines
Not all properties are eligible—especially condos with high HOA fees or short-term rentals in restricted areas.
Rental Income Must Be Strong
If the property doesn’t cash flow well, you may not qualify—or you’ll be offered less favorable terms.
How Florida’s Market Affects This Strategy
Florida is one of the best states to use a rental-income-only mortgage strategy. Here’s why:
High Rental Demand
From Miami to Tampa to Orlando, rental demand is strong. This leads to higher monthly rents—and stronger DSCRs.
Seasonal Short-Term Rental Appeal
Many areas, especially near the coast or theme parks, attract short-term rental income that outpaces traditional rent.
Investor-Friendly Appraisers
Lenders in Florida work with appraisers who understand rental markets and produce accurate rent schedules.
Zoning and Regulation Awareness
Different cities and counties have varying rules around short-term rentals. A Florida-based lending team can help you navigate those rules during the loan process.
How Select Home Loans Helps You Qualify with Rental Income
At Select Home Loans, we specialize in helping Florida real estate investors secure mortgages using only the income from their rental properties. We know the ins and outs of DSCR loans and alternative lending—and we don’t make you jump through unnecessary hoops.
Here’s how we make it easier:
- Access to multiple DSCR and investor-focused lenders
- Streamlined application with minimal paperwork
- Support for both long-term and short-term rentals
- Expertise in Florida zoning, rental rules, and appraisal expectations
- Personalized guidance, whether this is your first or tenth investment property
We take the time to understand your portfolio, your strategy, and your goals—then match you with the best rental-income loan option available.
Step-by-Step: How to Get a Mortgage Using Only Rental Income
1. Find Your Property
Or refinance one you already own. We can help estimate potential rent and cash flow.
2. Provide Rental Documentation
Either lease agreements or let the appraiser determine market rent.
3. Apply Through Select Home Loans
We’ll match you with the best DSCR or investor-friendly program based on your goals.
4. Complete Appraisal and Underwriting
The lender will evaluate the property’s income and your credit profile.
5. Close and Fund
Use the funds to acquire or refinance, then move on to the next one.
Conclusion
Yes—you absolutely can get a mortgage using only rental income in Florida, as long as you’re working with the right lender and the right loan product. DSCR loans and other rental-focused options are built for today’s investors, and Florida’s market makes it an ideal place to use this strategy.
If you’re ready to scale your portfolio or invest without showing W-2s and tax returns, Select Home Loans is here to help. Reach out today and see how far your rental income can take you.
