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DSCR Loans in Bradford County, Florida: No-Doc Way To Build Your Real Estate Portfolio Quickly

In Bradford County, Florida, DSCR loans are becoming a popular way to finance the purchase of investment properties. DSCR loans do not require the borrower to provide documentation of their income or assets. This is because the loan is based on the property's income rather than the borrower's creditworthiness.

Debt service coverage ratio (DSCR) loans provide the most accessible means to finance your real estate investments in Bradford County, Florida. You can use these loans to quickly build your portfolio and take advantage of the county's strong rental market.

With DSCR loans, you can get the financing you need without going through lengthy approval processes. Keep reading to learn more about DSCR loans in Bradford County, Florida.

What are DSCR Loans?

DSCR loans are based on the debt service coverage ratio (DSCR). The DSCR is a financial ratio determining whether or not a borrower is capable of making loan payments.

DSCR loans are a type of financing that borrowers typically use for large projects. They are a popular choice for businesses because they are offered without proof of income and documentation. The loan is based on the business's future cash flow. Understanding DSCR loans work essential before taking one in Bradford County, Florida.

Why Get a DSCR Loan in Bradford County, Florida?

Several factors make Bradford County an excellent place to invest in property through DSCR loans.

Firstly, the county is located in the heart of the Sunshine State, known for its warm weather and abundance of outdoor activities.

Additionally, Bradford County is home to several small towns and cities that offer a variety of amenities and attractions. Local attractions in Bradford County provide a desirable place to live and play, creating a thriving community that people are excited to be a part of. When people visit local attractions, they are also spending money on local businesses. This cash injection can help revitalize a struggling economy and attract even more investment.

For example, Camp Blanding Museum houses a fantastic collection of weapons, uniformed mannequins, and others. The Kingsley lake near Trail Ridge formation attracts both locals and visitors alike.

Bradford County, Florida, is a naturally beautiful place with a temperate climate. Property investors are always looking for regions that offer a favorable climate. Temperatures that are too hot or too cold can harm the property and the people living in it. Temperate climates in this county are generally more pleasant to live in, making the property more attractive to potential tenants or buyers. That's why many investors focus on Bradford County for new investments.

The county is also home to many businesses and industries, which provide a stable economy. The leading businesses are retail, accommodation and food, and public administration. This helps build the economy of the county. The properties here are likely to attract good returns.

These loans allow you to borrow money without providing documentation or proof of income. This can be a significant advantage for borrowers who may not have the necessary documentation to qualify for a traditional loan.

Lastly, DSCR loans can be used for a variety of different purposes. Whether you're looking to buy a property in Bradford, make repairs, or even refinance, these loans can be a helpful tool in achieving your investment goals.

How Does a DSCR Loan Work?

A debt service coverage ratio (DSCR) loan is typically used to finance the purchase of a new property. The loan is structured so that the business makes payments based on its projected cash flow rather than its current income.

DSCR loans can be helpful for businesses expecting to see a significant increase in their cash flow in the future. It is also an attractive option for investors who do not have much money to put down or do not want to go through the hassle of providing documentation.

To qualify for a DSCR loan, businesses must have a substantial debt service coverage ratio. This ratio measures a business's ability to make its loan payments. A business with a substantial debt service coverage ratio is more likely to be approved for a DSCR loan. Lenders will often require a high DSCR from borrowers to approve a loan. This is because a borrower with a high DSCR is considered a low-risk borrower, and lenders are typically more willing to lend money to low-risk borrowers.

Therefore, it's crucial to understand how to calculate DSCR and how it can impact your loan approval. This is because it will influence lenders' decisions greatly.

How Is DSCR Calculated?

The Debt Service Coverage Ratio (DSCR) measures the company's ability to cover its interest and principal payments on the outstanding debt.

DSCR, or debt service coverage ratio, is calculated by dividing a company's net operating income by its total debt service. For example, if a property can generate $10 million in net operating income and pay $6 million in interest on its debt, the DSCR is 10/6 = 1.67. This means the company has enough cash left after paying all its debts and obligations.

DSCR is an essential metric for lenders to consider when assessing a company's creditworthiness. A DSCR of 1.0 or higher is considered healthy, while a DSCR below 1.0 indicates that a company is not generating enough income to cover its debt payments.

Therefore, a high DSCR means that a company is less likely to default on its debt obligations, while a low DSCR indicates a higher risk of default.

A higher DSCR means more cash is available for repaying the loan and interest. A lower DSCR means insufficient cash or inability to repay loans and may indicate risk on the lenders' side. Hence, lenders in Bradford County will often set a minimum DSCR requirement for borrowers to mitigate risk.

How To Determine DSCR Income

Lenders use two standards when calculating DSCR in Bradford County, Florida. First, the DSCR income for residential properties is simply the monthly rental collection.

The DSCR means the net operating income (NOI) for commercial properties. The property's NOI means its gross income, less operating expenses.

How To Determine DSCR Payment

DSCR lenders in Bradford County use the PITIA method to determine DSCR payments.

PITIA is the acronym for PITI (principal, interest, property taxes, insurance, and associated costs) for a residential loan.

Here is an illustration of how income and payments affect DSCR.

Income Vs. DSCR

Income Payments DSCR
$4,000 $3,000 1.3
$3,500 $3,000 1.16

As seen above, when income increases, DSCR goes up as well.

Payments Vs. DSCR

Income Payments DSCR
$4,000 $3,000 1.3
$4,000 $2,500 1.6

As seen above, the lower the payments, the higher the DSCR.

To increase the DCSR, a borrower needs to focus on increasing income and reducing payments.

What Is the Minimum DSCR To Qualify in Bradford County, Florida?

The minimum DSCR (debt service coverage ratio) to qualify in Bradford County may vary depending on your lender. However, most lenders will require a DSCR of at least 1.25. Your net operating income must be at least 1.25 times your debt service (principal + interest + taxes + insurance).

Remember that this is just the minimum requirement to qualify - a higher DSCR will give you a better chance of being approved for a loan.

Wooden home model coins holder and calculator on wooden table for real estate investment

Bradford County, Florida DSCR Loan Guidelines

The following are the DSCR guidelines in Bradford County, Florida.

  • Credit score - Your credit history is a factor in this process. You need to have at least a 640 credit rating. Lenders in Bradford County have different credit score requirements.

  • Loan amount - The maximum DSCR loan amount is $5,000,000.

  • DSCR loan penalties - If you repay your loan too early or refinance too quickly, your lender might impose a penalty on your DSCR loan.

  • Cash reserves - Your DSCR lender will scrutinize your cash reserves. Some lenders will demand cash reserves for up to twelve months of mortgage payments. Others may demand cash reserves of 6 months' mortgage payment.

  • Loan-to-value (LTV) ratio - DSCR loans in Bradford carry an LTV of up to 75-80% or a 20%-25% down payment.

  • Future income - An appraiser has to verify the prospective property's proceeds. They use form Fannie Mae Form 1007 for verification.

  • Loan purpose - Borrowers can use the DCR loan to buy a property or refinance an existing one.

  • Property use - You can use your DSCR loans to acquire rental properties. The DSCR loan cannot be used to purchase a primary residence.

  • Loan type - DSCR loans carry a 30-year term or 5-year adjustable rates. Some lenders may also offer interest-only ARMs, so check with your lender first.

  • Income and employment, debt-to-income (DTI) ratio - DSCR lenders in Bradford don't use proof of income to determine illegibility. They focus on the future cash flow of the property.

  • Maximum properties owned - Borrowers may own several properties or loans with DSCR loans.

  • Seller-paid closing costs - Sellers can usually cover a portion of closing costs with DSCR loans.

  • Closing in the name of an LLC - Lenders don't prohibit borrowers from closing in the name of an LLC.

The Five Best Cities To Invest in Bradford County, Florida

If you're considering investing in Florida property, you'll want to research to find the best locations. There are many factors to consider, such as the local economy, quality of life, and population growth.

Here, we look at the five best cities to invest in Bradford County, Florida.


Brooker City is a great investment location for many reasons. First, the city is located in a prime spot for growth. The city has experienced a market growth of 1.2% within one year.

The population of Florida is expected to continue to grow in the coming years, and Brooker City is well-positioned to attract new residents.

The city also has several vital industries driving the economy, including tourism, agriculture, and manufacturing.

In addition, Brooker City has a low unemployment rate of 4.3% compared to the national average of 6.0%. For property investors, a low cost of living could mean more renters are looking for affordable housing, which could lead to more rental income.


The city of Graham is situated southwest of Starke. It has a strong economy with a diverse mix of businesses. This attracts many investors due to the booming economy.

The median household income is higher than the national average, and the unemployment rate is below the national average. The cost of living in Graham is also below the national average.

There are various housing options available in Graham, from single-family homes to apartments. The median home price is around $130,000, below the national average. This means that properties are affordable here and likely to attract many renters. These factors make Graham city an attractive choice for property investment.


Hampton city, Florida, has continued to attract property investment for many reasons. First, the city has a strong economy and diverse industries. This provides stability for property values and ensures that there will be a consistent demand for rental properties.

Second, Hampton is a popular tourist destination, meaning there is a steady stream of potential renters. Vacationers and business travelers are always looking for short-term rentals, making Hampton city an ideal place to invest in rental properties.

Finally, Hampton city is home to several universities and colleges. These include Hampton Center College of Central Florida, Morning Star Catholic School, St. Brendan the Navigator Catholic School, etc. This provides a ready pool of tenants for rental properties, as students always need housing.


Many factors make Lawtey city a good place for property investment. The city has the following desirable features:

  • A thriving economy.

  • Low cost of living.

  • A variety of housing options.

  • The city is located in a desirable climate.

  • The city has a robust transportation infrastructure.

  • The city is home to many top-rated schools.

Investors looking for a solid return on their investment will find that Lawtey city is a wise choice. The city has all the makings of a thriving community, and its location makes it a prime target for future growth.


Starke City, the county seat of Bradford County, is a great place to invest in property for several reasons. The first reason is that the city is constantly growing. The population of Starke city, Florida, has been steadily increasing for the past few years, which means a growing demand for housing. This is a good thing for investors because it means that there is a good chance that property values will continue to rise in the future.

Another reason to invest in Starke city, Florida, is because the city is located in a desirable part of the state. The city is situated in the northeastern corner of Florida, known for its beautiful beaches and mild climate. This makes Starke city a great place to live, another plus for investors.

Tips for Bradford County, Florida Property Investors

Research the Local Property Market

As a property investor, it is essential to do your research on the local market before making any investment decisions. There are several reasons why this is the case.

For starters, you need to understand the local market well to know what type of property will be in demand. You also need to know what prices properties sell for to ensure you make a wise investment.

Local market research can help investors identify trends, opportunities, and risks. Awareness of potential risks or problems in the local market is crucial. Doing your research can minimize the risks associated with investing in property.

Also, market research can help investors understand the local economy and demographics impacting property prices and rental demand.

Consult Experts

Experts have the knowledge and experience to help investors make the best decisions. They also have access to the latest market information, which can give investors an advantage. Experts can also guide how to manage best and grow a property portfolio.

Another reason working with experts benefits property investors because experts can help save time. They can handle the research and paperwork associated with investment properties, freeing investors to focus on other aspects.

Have a Solid Investment Plan

A well-thought-out plan can help you to avoid making impulsive decisions that may not be in your best interests. A plan can also help you to set realistic goals and expectations for your investment journey.

Notably, a plan can provide you with a roadmap to success, keeping you on track and helping you to avoid common pitfalls.

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

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