Skip to content
Fact Checked by Experts

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

If you're a real estate investor in Liberty County, Florida, you know that it's a tough market to break into. Although the competition is fierce, there's a way to get started in the market quickly and with minimal hassle: DSCR loans. A DSCR loan is a "no-doc" loan that can be used to purchase or refinance investment properties in Liberty County, Florida.

DSCR loans are a great way to get started in the Liberty County real estate market quickly and easily. You can get a DSCR loan with little to no documentation, and you can use the loan to buy up to four properties in the county.

If you're looking for a way to build your portfolio quickly, a DSCR loan may be the perfect solution. Please keep reading to learn more about these loans and how they benefit you.

What are DSCR Loans?

DSCR loans are a type of loan that investors often use to finance large projects. The acronym DSCR stands for "debt service coverage ratio." This ratio measures a property's ability to repay its debt. A property's DSCR must be greater than 1.0 to qualify for a DSCR loan.

DSCR loans offer to finance projects requiring sizeable up-front capital, such as construction projects or purchasing new equipment. This type of loan can be beneficial for property investors that need to finance a large project but may not have the cash on hand to do so.

DSCR loans are typically offered to investors that may not qualify for traditional loans. The loans are typically repaid through the proceeds of the property and mostly have to carry a 30-year term or so.

Why Get a DSCR Loan in Liberty County, Florida?

Liberty County is a beautiful county located in the panhandle of Florida. Its sugar-white beaches, clear waters, and lush vegetation are known. The county is also home to many businesses, such as Dollar General, Erma Jean's Antiques & Gifts, and Busy Boy Mart, among others. This makes Liberty County a great place to live in Florida, attracting property investors.

The county is also growing rapidly, with new industries moving into the area. This growth will likely continue, which could mean big profits for investors.

Liberty County should be on your radar if you consider investing in property. With its strong economy and quality of life, the county is a great place to invest in property and reap the rewards.

Other factors that make Liberty ideal for property investment include:

  • There are several DSCR lenders in Liberty county. This makes the facility accessible to most property investors in Florida.

  • The county is in the panhandle of Florida, known for its beautiful beaches and sunny weather.

  • Liberty County is a growing community with a population that is expected to increase in the coming years.

  • The county is home to several businesses and industries, which means there are opportunities for employment and economic growth.

  • The cost of living in Liberty County is 81.6% which is relatively low compared to the national average. This makes it a great place to live and work.

  • There are tax advantages to investing in Liberty County property. For instance, partnerships and sole proprietorships in Liberty do not pay a special tax.

  • The county property market has a high demand for a diverse range of properties, from rural farmland to luxury beachfront condos.

  • You can get a DSCR loan in Liberty County based on the projected income of the property.

Taking out a DSCR loan can help you secure the property you need to start or grow your investment portfolio in this potential Liberty County market.

How Does a DSCR Loan Work?

DSCR loan works based on the property's projected cash flow, which is used as collateral for the loan. The lender uses the Debt Service Coverage Ratio (DSCR) of the property in question to determine the borrower's ability to repay its debt obligations. This ratio measures your business's ability to repay its debt obligations.

The loan is repaid through the property's future cash flow, which makes it a popular choice for businesses that do not have the collateral to secure a traditional loan.

How Is DSCR Calculated?

DSCR, or Debt Service Coverage Ratio, is calculated by dividing a company's net operating income by its total debt service obligations.

DSCR is usually expressed in decimal format, e.g., 1.25 or 1.25x. A DSCR of 1.0 or higher means that a company has enough cash flow to cover its debt payments. A DSCR of less than 1.0 means that a property does not have enough cash flow to cover its debt payments and is more likely to default on its debt payments.

For example, a company has a net operating income of $100,000. It requires $80,000 in principal and interest payments each year. This property's DSCR would be:

DSCR = Net operating income / Debt service obligations

$100,000/$80,000 = 1.25x

A Debt Service Coverage Ratio (DSCR) of 1.25X means that the property makes 25% more income than the monthly payment amount. This is generally considered a good thing, meaning the property can meet its obligations. A higher DSCR indicates a better ability to service debt, while a lower DSCR indicates a greater risk of default.

How To Determine DSCR Income

The determination of DSCR income is straightforward. For residential properties, the DSCR income is monthly rental income.

On the other hand, DSCR income for commercial properties in Liberty County refers to the net operating income (NOI). It is the difference between income and operational expenses, such as utilities, maintenance, and others.

Luckily, you don't have to go through calculating DSCR income yourself. Your lending institution will help in these calculations.

How To Determine DSCR Payment

DSCR payment is calculated using the PITIA method. This method considers the borrower's principal, interest, taxes, insurance, and associated fees.

Look at how higher property income can improve your DSCR

Rental Income Payments DSCR
$3,000 $2,500 1.2
$3,300 $2,500 1.32

As you can see, the higher rent income translates to higher DSCR and vice versa.

Look at how a lower payment can translate to a higher DSCR

Rental Income Payments DSCR
$2,000 $1,500 1.3
$2,000 $1,200 1.67

The above illustration shows that the lower the DSCR payments, the higher the DSCR.

Since DSCR is vital in determining eligibility for a DSCR loan, you will need to focus on increasing the rental income of your property. You can also seek ways to lower payments for the property.

Coins stack with model house on top for real estate mortgage

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

The minimum DSCR to qualify in Liberty County is 1.25x. Most DSCR lenders want this at least, but the higher the DSCR, the better.

Some Liberty County lenders may consider anything less than 1.25, while otters don't have a set minimum. However, as an investor, you should avoid a DSCR lower than 1.0, as this indicates an inability to repay the loan.

Liberty County, Florida DSCR Loan Guidelines

Most Liberty County, Florida, lenders use these guidelines when giving DSCR loans.

  • Loan-to-value (LTV) - Borrowers in Liberty can enjoy LTV up to LTV of 75-80%, requiring them to make a 20-25% DSCR down payment.

  • Future Income Verification - An appraiser fills out the Single-Family Comparable Rent Schedule form to verify your property's future rental income.

  • Credit score - Most lenders in Liberty require a minimum credit score of 640, while others may require a higher rating.

  • Property types allowed - This requirement varies significantly by the lender, but most consider single-family units, townhomes, condos, and more. Others allow commercial properties such as 5+ unit apartments and office buildings.

  • Property use - Lenders in Liberty County can approve DSCR loans for short- and long-term rental properties.

  • Loan type - Most lenders offer 30-year fixed-rate loans. Others may offer adjustable-rate and interest-only loans.

  • Loan purpose - DSCR loans in Liberty can be used to refinance, purchase or cash-out refinance.

  • Income and employment, debt-to-income (DTI) ratio - DSCR lenders use the property's income, so DTI ratios and income verification are not required.

  • Maximum loan amount - Some lenders in Liberty may offer loans up to $5 million, but some will offer less.

  • Cash reserves - PITIA payments typically require 6-12 months of reserves, though lender requirements vary.

  • Closing in the name of an LLC - Most Liberty DSCR lenders allow you to close in the name of an LLC.

  • Prepayment penalties - If you sell the property, pay the mortgage, or refinance too soon, you will usually incur prepayment penalties.

The Five Best Cities To Invest in Liberty County, Florida

If you're thinking about investing in Liberty County, here are five of the best cities to consider:


Hosford is an excellent option for real Liberty County Property investors. Here are a few reasons:

  • The city is in a prime location for growth. It's situated near the Gulf of Mexico, which means there are plenty of opportunities for businesses in the tourism and hospitality industries.

  • Hosford has a low living cost, making it an attractive option for families and retirees.

  • The city is home to several businesses and industries, including Georgia-Pacific LLC, a large paper mill. This provides a stable economic base for the city.

  • Hosford has an excellent school system, such as Hosford Elementary Junior High School and Apalachicola Forest Youth Camp.


Sumatra is a city in Liberty County located on the east bank of the Apalachicola River, about 50 miles (81 km) southwest of Tallahassee.

Also, the city is an excellent place to invest in because of its low crime rate of 34.9. This is lower compared to the national average of 35.4. This town is a safe place to live and, therefore, can attract real investors.

Sumatra is a great place to raise a family or retire. The city has a small-town feel, but it also has all the amenities of a larger city. There are plenty of things to do in Sumatra, such as visiting Carrabelle Beach RV Resort if you like camping. This would attract young people to this town, raising demand for rental properties. For Liberty County aspiring investors, Sumatra would be a great option.


Telogia is a small city in Liberty County, Florida, situated (17.5 km) east-southeast of Bristol and is home to several businesses and industries such as the BioMass Power Plant & Equipment. As a result, Telogia city has a strong workforce, with many skilled workers employed in the city's businesses and industries.

There is also a good supply of land available for development, and the city is located in a beautiful scenic area. This sparks the area's economic development and creates housing demand for the growing workforce population. All these and many more make Telogia a good choice for businesses and investors.

Bon Ami

For several reasons, Bon Ami city is an excellent place to invest in property. The city is growing rapidly, with a population expected to double in the next ten years. This population growth is due to several factors, including the city's proximity to the beaches, reasonably priced housing, and vibrant nightlife.

The city is also home to several large corporations, such as Bon Ami Group Housing INC, which brings in a steady stream of new residents and helps keep the city's economy strong.

Additionally, the real estate market in Bon Ami city is also very stable, with prices remaining steady for the past few years.


Bristol, located in Northwest Florida, has a lot to offer investors. The city has a booming economy with diverse healthcare, aviation, and manufacturing industries. The city is also home to a large military installation, which provides a steady stream of renters. The several Christian Military Schools within the city further increase demand for families with school-going children.

In addition to a strong economy, Bristol city has a lot to offer regarding the quality of life. The city is home to many parks and recreational facilities, such as the Veterans Memorial Civic Center and the Nature Conservancy Apalachicola Bluffs and Ravines Preserve (Garden of Eden trail). These make Bristol desirable to live and work, leading to high property values.

3 Tips for Property Investors in Liberty County, Florida

As you plan to invest in the Liberty County property market, you need to consider a few things. Here are three essential tips:

Research the Local Market

Before investing in any property, it is essential to do your research and understand the local market. This is especially true in Liberty County, where the real estate market can be volatile. You'll need to have a good understanding of the area before you can make any investment decisions.

For example, what is the population of the place? What is the median home price in the city? How about the crime rate in the areas? These and many aspects of a city can significantly influence housing demand.

Choose the Right Location

Choosing the right location for property investment is crucial to success. The local market location will significantly impact your investment price, the potential for rental income, and the overall profitability of the venture.

For example, Liberty County is home to some of the natural body waters of Florida. This makes it a popular destination for vacationers, leading to a healthy rental market for investors. The county is also home to several major employers, including the Liberty County School District. This provides residents with good jobs and helps to keep the economy strong.

Work With Experts

One of the most important things to consider when investing in property in Liberty County is the expertise of the professionals you work with. There are a lot of factors to consider when investing in a rural property, and it is essential to work with experts who understand the property market in Liberty County.

For instance, your need to work with a real estate agent who knows the local market well. They know the prices for properties within Liberty and can advise you according to your budget. A DSCR lender can help you finance your Liberty property investment and start building your property portfolio. Therefore, working with experts is the best way to successfully build your real estate portfolio.

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.

Find The Right Mortgage

For more than 20 years, Phil have been helping customers achieve their home purchase and refinance goals by providing them with invaluable resources and support.

Schedule a FREE Consultation
Phil Ganz

Subscribe to Get Your First Time Homebuyer Checklist

Sign up for the weekly newsletter to stay up to date on the latest real estate market trends, loan news, and so much more!