Florida has long been a hot spot for real estate investors. With strong population growth, booming tourism, and year-round rental demand, it’s no surprise that both local and out-of-state buyers are looking to cash in on rental property opportunities.
But whether you’re buying a second home in Miami, a long-term rental in Tampa, or a short-term property near the beaches, the financing you choose can make or break your investment. Rental property loans aren’t the same as your typical home mortgage, and understanding the differences is key to growing your portfolio the right way.
Let’s break down the types of rental loans available, how they work in Florida, and how to pick the right one based on your goals.
What Is a Rental Property Loan?
A rental property loan is a mortgage used to buy or refinance real estate that generates rental income. This could be a single-family home, a duplex, or a small multifamily property with up to four units. These loans are not meant for primary residences—they’re specifically for income-producing properties.
What sets these loans apart from standard residential mortgages is that lenders view them as business investments rather than personal homes. That means stricter qualifications, different underwriting standards, and usually higher interest rates.
But on the flip side, rental property loans also give you more freedom to build wealth through real estate—especially when structured properly.
Who Should Consider a Rental Property Loan in Florida?
Florida is one of the most active rental markets in the U.S. With year-round demand, no state income tax, and constant inbound migration, it’s a prime location for all types of investors.
You should consider a rental property loan if you’re:
- A first-time investor buying a long-term rental or Airbnb
- A seasoned landlord expanding your real estate portfolio
- A fix-and-flipper looking to finance a short-term project
- An out-of-state buyer investing in Florida’s appreciation or vacation rental market
- A self-employed borrower needing non-traditional loan options
No matter your experience level, the right financing can help you scale faster, lower your risk, and keep more of your cash in the deal.
Types of Rental Property Loans Available in Florida
There’s no one-size-fits-all rental loan. Different strategies call for different loan types. Here’s a breakdown of the most common options available to Florida investors:
1. Conventional Investment Property Loans
These are traditional loans backed by Fannie Mae or Freddie Mac. They come with decent interest rates and 30-year fixed options but require full income documentation and excellent credit.
- Minimum 20–25% down payment
- Credit score typically 680+
- Strong borrower profile needed
- Cannot use short-term rental income unless it’s documented on tax returns
These loans are best for investors with stable W-2 income, solid reserves, and long-term buy-and-hold strategies.
2. DSCR Loans (Debt Service Coverage Ratio)
DSCR loans are designed for real estate investors who want to qualify based on property income, not personal income. This is one of the most flexible and popular rental loan options in Florida right now.
- Qualify based on the property’s rent vs. the mortgage payment
- No W-2s or tax returns required
- Minimum DSCR usually 1.0–1.25
- Down payment of 20–25%
- Great for short-term or long-term rentals
DSCR loans are especially helpful for investors who are self-employed, growing their portfolio quickly, or operating in cities like Orlando and Miami with strong rental cash flow.
3. Portfolio Loans
Portfolio loans are held by the lender and not sold to Fannie or Freddie. That gives them more flexibility on guidelines.
- Ideal for investors with multiple properties
- Can combine several properties into one loan
- Lenders often overlook small credit or income issues
- Great for growing your rental business
These loans may come with slightly higher rates, but the flexibility often makes them worth it for serious investors.
4. Hard Money and Private Loans
Hard money loans are short-term options often used by fix-and-flippers or BRRRR investors. They’re asset-based, meaning lenders care more about the property value than the borrower.
- Fast closing (as little as 7–14 days)
- Higher interest rates (9%–12% common)
- 6–24 month terms
- Ideal for distressed properties or quick-turn projects
Hard money can be a useful tool if you’re trying to secure a deal quickly or need funding for renovations before refinancing into a long-term rental loan.
5. Commercial Rental Loans (5+ Units)
If you’re financing a multifamily building with more than four units, you’re in commercial loan territory.
- Underwriting based on Net Operating Income (NOI)
- Typically require experience and larger down payments
- Often offered by banks and commercial lenders
- Terms vary from 5–30 years, with balloon structures common
These loans are best suited for experienced investors scaling into apartment buildings or commercial rental spaces.
Loan Requirements for Florida Rental Properties
While requirements vary by loan type, here’s what most lenders will look for when financing a rental property in Florida:
Down Payment
Expect to put down at least 20–25%. Some conventional loans may allow 15% for single-family rentals, but most programs—especially for multifamily or DSCR—will require 25% or more.
Credit Score
A minimum of 620–680 is typical, depending on the lender and loan type. Higher scores can help lower your rate or reduce reserve requirements.
Rental Income Documentation
For conventional loans, you’ll need lease agreements and tax returns. DSCR loans may only require a rent schedule from the appraisal. Short-term rentals may need 12+ months of Airbnb or VRBO income history, or appraised market rent.
Reserves
Many lenders require at least 3–6 months of mortgage payments in reserves. Some portfolio lenders ask for more, especially on multiple-property deals.
Property Appraisal
A standard appraisal is required. For rental properties, lenders also use Form 1007 (market rent schedule) to determine potential income if the home isn’t currently rented.
Short-Term vs. Long-Term Rentals in Florida
Florida is unique because both short-term and long-term rentals can be extremely profitable—if financed correctly.
Short-Term Rentals (Airbnb/VRBO)
- Higher gross income, but can fluctuate seasonally
- Some lenders don’t allow STRs, others require 12+ months of proven income
- Zoning laws can limit STRs in certain areas (Miami Beach, Orlando suburbs)
- DSCR and bank statement loans are often better fits than conventional loans
Long-Term Rentals
- More stable income
- Easier to document and underwrite
- Works well with all loan types (conventional, DSCR, portfolio)
- Great for areas with strong year-round demand (Tampa, Jacksonville, Palm Bay)
Before you buy, make sure the financing matches your rental strategy—and that local laws allow for the type of rental you plan to operate.
Best Areas in Florida for Rental Property Investment
Florida is filled with investment hotspots. Here are a few standouts where rental property loans are commonly used:
Orlando
Tourism-driven and short-term rental-friendly. DSCR loans perform well here thanks to consistent demand.
Tampa Bay
Strong job market, growing population, and mix of short- and long-term rental opportunities. Popular with out-of-state investors.
Miami & Fort Lauderdale
Luxury and vacation markets dominate here. Higher price points often require jumbo or DSCR loans. STR zoning is tighter—do your homework.
Jacksonville
Steady appreciation, affordable prices, and consistent tenant demand. Great for long-term, cash-flowing rentals.
Cape Coral & Fort Myers
Rising in popularity for vacation and seasonal rentals. Many homes qualify for DSCR loans based on high market rent.
How to Choose the Right Loan for Your Rental Strategy
Your investment approach should drive your financing decision. Here’s a quick breakdown:
A good lender will help you match your goals with the right loan product—not try to fit you into a box.
How Select Home Loans Helps You Finance Rental Properties in Florida
At Select Home Loans, we don’t just do loans—we help investors build portfolios. Whether you’re buying your first rental or expanding across the state, we’re built for Florida’s fast-moving market and investor needs.
Here’s what we bring to the table:
- Access to rental loan programs other lenders can’t offer (DSCR, portfolio, STR-friendly)
- Flexible underwriting for self-employed borrowers, LLC purchases, and non-traditional income
- Florida-specific expertise, from short-term rental regulations to market rent analysis
- Quick turnarounds so you can close fast and move on to the next deal
We guide you through the full process, help you choose the best loan type, and connect you to underwriters and appraisers who understand rental properties—not just primary homes.
Step-by-Step Guide to Getting a Rental Property Loan
1. Define Your Strategy
Know what kind of rental property you want to buy (short-term, long-term, flip, etc.)
2. Get Pre-Qualified with Select Home Loans
We’ll look at your goals, finances, and property type to match you with the best loan.
3. Choose the Right Loan Program
We’ll walk you through conventional, DSCR, or portfolio options based on your deal.
4. Submit Your Docs
Depending on your loan type, we’ll collect lease agreements, bank statements, or just a property address and credit check.
5. Complete Appraisal and Underwriting
We coordinate the appraisal, rent schedule, and final loan conditions.
6. Close and Cash Flow
Once you close, you’re ready to start collecting rent—or get started on renovations.
Conclusion
Rental properties in Florida offer incredible opportunities—but only if you have the right financing. From long-term rentals in Jacksonville to vacation homes in the Keys, there’s a loan that fits your strategy.
At Select Home Loans, we help Florida investors get the funding they need—fast, simple, and built for real estate growth.
If you’re ready to buy your next rental, let’s talk. We’ll help you get pre-qualified, pick the right loan, and start building your portfolio the right way.
