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

Real estate investing is one of the classical and time-tested ways of building wealth. To build or grow your real estate portfolio, you should first find a reliable financing option. With DSCR loans, you can finance more than one property. And the best part is that the lender only looks at the property's cash flow.

In the sections below, we have covered all you need to know before investing in Jackson County, Florida, from eligibility requirements and benefits of DSCR loans to the best areas to invest in.

What are DSCR Loans?

DSCR loans are real estate investment loans where the lender looks at the property's cash flow, not the borrower's income or employment status. Debt-Service Coverage Ratio or DSCR is a measure used to compare a real estate's cash flow to its debt obligation.

A DSCR of higher than one shows that the property generates enough income to cover its current debt obligation. However, a DSCR lower than one means that the revenue generated by the property cannot meet its current debts. Hence the investor will have to look for other means to settle the current debts.

A DSCR of exactly one indicates that the property can generate just enough cash flow to pay off its current debt. This means that the property cannot cover any other additional expenses.

DSCR loans are familiar to real estate investors. DSCR loans are ideal for borrowers who wish to grow their real estate portfolio significantly. The DSCR loan program allows new and seasoned real estate investors to qualify for a loan based entirely on the cash flow generated by the investment property.

Why Go for a DSCR Loan in Jackson County, Florida

Whether you are a veteran investor or are new to real estate investing, DSCR loans offer a convenient way to finance your real estate properties and build your portfolio from the ground up. With the loan, you can purchase any property of your choosing, and you won't have to put a lot of money down.

Jackson County is also a great County with lots of investment opportunities. The favorable tropical climate, lakeside living and attractions, and easy access to social amenities make this County an excellent spot for setting up businesses and residential properties. Below are the other reasons to go for a DSCR loan in Jackson County, Florida.

DSCR Loans Are Easy to Qualify

With DSCR loans, the loan application isn't evaluated based on your debt-to-income ratio. This is because the DSCR loan providers use a coverage ratio to determine your eligibility.

This suggests that lenders do not verify your employment history or income when applying for the loan, significantly reducing the paperwork required. Not to mention, DSCR loans are much more available to borrowers who might not have a significant amount of liquid assets.

Jackson County Has a Promising Real Estate Market

The population of Jackson County was 47,319 as of the 2020 Census, and the median household income was $40,754. The median listing home price as of September 2022 was $218,000.

This is a 15.3% increase from the previous year, which is a good sign for every investor that wants to invest in the area. Numbers don't lie. Like most Counties in Florida, Jackson County has an active and promising real estate market.

Suitable for Every Investor

A DSCR loan is a wise choice for financing any of your real estate investments, regardless of your experience in the space.

Unlike the other real estate financing options, lenders won't look at your real estate experience to qualify you for the loan. This is a massive plus for first-time investors.

DSCR Loans are Flexible

Some mortgages call for a one-time commitment to a single piece of property. That means you can't access a loan for another property until the first loan is paid off. However, DSCR loans are flexible and don't operate in that manner. They allow you to take out numerous loans for various properties simultaneously.

This allows you to grow your real estate business more quickly and with ease. In addition, you can close every loan in your company's name, unlike other types of loans. This will help keep your private information separate from your company's operations.

DSCR Loans Provide Quick Closing Times

DSCR loans offer a quicker closing time than conventional mortgages and bank loans. This is because there is no need for your loan provider to verify your income or look up your employment history during the application process.

The ultimate goal is to provide funding to the investor, and shortening this process is advantageous to both the investor and the loan provider.

Provide Option for Down Payment

Compared to other options, like sheriff sales, the DSCR loan does not require you to pay the entire amount for the investment property. The lender will require that you pay a down payment, which typically ranges from 20 to 25 percent, depending on your loan provider.

You can also roll the remaining amount into other properties and stand a chance to grow your real estate portfolio significantly.

House model on dollar cash stack in glass jar for real estate investment

DSCR Loan Eligibility Requirements in Jackson County, Florida

The application process for a DSCR loan is usually fast and flexible compared to conventional investment mortgages. In addition to meeting the set DSCR value, there are other requirements that you must fulfill to qualify for the loan.

Some of these requirements vary with different lenders, but others remain relatively consistent. Here are some eligibility requirements you must meet to qualify for a DSCR loan in Jackson County, Florida.

Credit Score

Your credit or FICO score shows how likely you are to repay the loan on time. Suppose your credit score is high; your chances of qualifying for the loan increase.

Like other home mortgages, DSCR loans have a minimum credit score ranging from 620 to 640, depending on your lender. If your credit score is lower, you will need to put more money down or incur higher rates.

Cash Reserves

Lenders will need proof that you can cover your DSCR loan should any unexpected change occur in your property. This is proven through cash or mortgage reserves.

Most DSCR lenders will require you to have a reserve equivalent to mortgage payments of six months. This may, however, go up to twelve months equivalent if your DSCR is less than one.

LTV Ratio

Loan to value is the total mortgage ratio to the property's total value. Most lenders usually have a maximum of 75% to 80%, meaning you need to pay a down payment of 25% to 20% respectively.


DSCR loans can purchase short-term or long-term rental homes but can never be used to finance primary residences. The loan can also be used in refinancing existing properties as long as you meet other requirements.

Projection of Property's Future Income

As part of the DSCR loan application process, you will need to find an appraiser to determine how much income your home can generate.

Your property's income will determine whether you can pay your debt obligations without looking for an alternative method to repay your debts. The rate of vacancy loss also contributes to the total expected rental income.

How to Calculate DSCR

As noted earlier, DSCR is a ratio of the property's total income to its debt obligations, such as mortgage payment, insurance, taxes, and HOA fees. DSCR is often represented in decimals.

A DSCR of 1.30x, for instance, shows that the property has 30% more income than its debt obligation. The higher the DSCR, the more promising the investment and the higher the chances that the lender will finance it. One way to improve a property's DSCR is to increase rent and lower expenses.

How to Determine DSCR Income

DSCR income is the monthly income you get from your real estate property. Everyday expenses are management maintenance, property taxes, and all the property's operating expenses.

To determine the monthly income, you'll use the Net Operating Income or NOI, which refers to the total rental income minus the costs or expenses.

How to Determine DSCR Payment

DSCR payment is the total amount you pay from your rental income. Your DSCR payment often includes principal, interest, taxes, insurance, and homeowners association fees. The exact amount you'll pay varies from one lender to another.

Ideally, most lenders will consider the debt amount, your DTI, credit score, and DSCR income. Other factors may include your repayment timeline and the agreed interest rates.

To reduce your DSCR payment, you'll need to put more money down, increase rent, boost the property's value and lower the operating expenses.

What's the Minimum DSCR in Jackson County, Florida?

Most DSCR lenders in Jackson County, Florida, work with a standard DSCR of 1.25x. However, this may change from time to time and from one lender to another. Some lenders may lower their DSCRs while raising the rates, while others may have a higher DSCR minimum.

Before choosing a lender, confirm their minimum DSCR and how they have structured their other requirements and policies.

The Best Areas to Setup Real Estate Investment in Jackson County, Florida

Jackson County, Florida, is one of the rapidly growing counties in Florida, thanks to a massive influx of new homeowners from Florida and neighboring states such as Alabama and Georgia.

The County is known for its serene neighborhoods with a rural-suburban feel, a rich historical heritage, and numerous landmarks. Below are the best places to grow your real estate investments in Jackson County, Florida.


The city of Marianna is the county seat of Jackson County, Florida. Marianna is nicknamed "The City of Southern Charm" and is quite popular in northwestern Florida. The city also has a lower cost of living (24% lower than the national average), peaceful neighborhoods, numerous attractions, and welcoming residents. In 2020, Marianna had 6,607 residents and a median household income of $26,747.

The median household income increased by 16.8% between 2019 and 2020, from $22,909 to $26,747, a positive indicator for investors. As of September 2022, the median listing price was $226,000, while the average listing price for a home was $138 per square foot.


Graceville is a city in Jackson County, Florida, with 2,188 residents per the 2020 census. As of the same year, the city had a median household income of $27,181, while the median listing price of a home was $259,000 as of September 2022.

Similarly, the average listing price per square foot was $138, and the average cost of the homes sold was $185,000. The city has some of the best neighborhoods with great restaurants, shopping centers, and other landmarks.

Jacob City

Jacob City, Florida, offers a unique blend of a rural and suburban feel. The city is home to impressive attractions and experiences, from heritage trails and state parks to shopping centers and exhibition halls.

Approximately 257 people lived in Jacob City, Florida, per the 2020 U.S. Between 2019 and 2020, the city saw a 5.76% increase in population, and real estate developments are picking up in significant suburbs.


Malone is a town in Jackson, Florida, with a population of 2,080 per the 2020 national census. The area has numerous outdoor activities, attraction sites, great restaurants, and serene neighborhoods.

From 2019 to 2020, the population grew by 3.5%, and the town has seen new real estate developments and a rise in the number of new homeowners. The town's median household income was $41,719 in 2020, while the median listing price as of September 2022 was $160,000.


The town of Sneads, Florida, had 2,130 residents per the 2020 census, with a median household income of $33,622. Sneads offers a sparse rural-suburban feel with extensive outdoors and fantastic sightseeing opportunities. The town is popular among families and retirees, and most residents in the area own their homes.

As of September 2022, the median listing price in the area was $177,500, rising 4.4% from the previous year. This town has a promising real estate market, considering it offers more land and space for the money and is currently seeing an influx of new homeowners.

Bottom Line

Getting started in real estate is becoming more accessible now than ever, thanks to the many practical and reliable financing options. Nowadays, you don't need a lot of cash to invest. With DSCR loans, you can put a small amount of money down and use the property's cash flow to qualify for flexible real estate financing.

If you want to build or expand your real estate portfolio, Jackson County, Florida, is an excellent market to explore. You need to contact your local lender to determine your eligibility before discussing the way forward in your investment journey.

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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