Skip to content
Fact Checked by Experts

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

If you're looking to build your real estate portfolio in Suwannee County, Florida but have no access to traditional financing, DSCR loans might be the perfect solution to your problem. These loans are designed to let companies and individuals with little or no personal or business credit history receive funding quickly without submitting a range of supporting documentation or undergoing extensive scrutiny of their financial records.

This article will cover the basics of DSCR loans, how they work, the payment, the minimum DSCR in Suwannee, and why you should consider using DSCR to help kickstart your real estate investing career in Suwannee County, Florida. We'll also show you the best cities in Suwannee County to invest in real estate. Read on to find out more.

The Basics of DSCR Loans

The Debt Service Coverage Ratio Loan (DSCR) is a real estate loan that allows borrowers to buy investment properties without providing collateral. You only need enough down payment and a target property capable of generating enough income to cover your debt.

DSCR loans are typically repaid through the monthly income from rented properties, so your lender will expect you to use some of that income. In most cases, you don't need to worry about meeting strict financial requirements if your property promises to make enough rental income to cover the loan interest and principal.

There is a lenient eligibility criterion for these loans, so not all investors will qualify. In addition to an excellent credit score and a considerable cash reserve, you must have at least 15% of the purchase price saved for a down payment to qualify for a sizeable DSCR loan.

Reasons to Get a DSCR Loan in Suwannee County, Florida

Most investors choose Suwannee County because they believe there's money to be made in the area. Besides that, there are plenty of reasons you might want to consider getting a DSCR loan to kickstart your real estate investing journey in Suwannee County, Florida.

The following are the top five reasons you should get a DSCR loan in this ever-growing county in the Sunshine State.

A DSCR Loan is Safe

The DSCR loan is safe because it's backed by the borrower's property, not their assets. This means if something happens, like foreclosure or bankruptcy, the lender could go after your property instead of your other assets.

Another safety aspect of DSCR loans is the plenty of time you get to repay. With the DSCR loans, you can borrow up to 75% loan-to-value LTV, allowing more flexibility when it comes to repayment than other options.

Additionally, DSCR loans don't require Private Mortgage Insurance (PMI). PMI is an extra fee to protect your loan if you default, but it isn't necessarily wrong. The lender uses it as an insurance policy to reduce risk, but you don't have to worry about PMI when applying for a DSCR loan in Suwannee County.

Easy to Qualify

DSCR loans are often easier to qualify for than traditional loans. For example, you don't need proof of income or assets when applying for a DSCR loan. Instead, the DSCR lender uses your property's rental income to determine if you can afford the mortgage payments on your loan.

Regardless of how long you've been in the real estate investment business, if you have a low credit score, you're a foreigner, and you want to borrow in an entity or LLC, you may still qualify for a DSCR loan in Suwannee. Please reach out to your local lender for specifics depending on your situation.


A DSCR loan is a flexible real estate financing option for individual and company investors looking to invest in single-family homes, condos, townhouses, etc.

Note that the loan is only available for investment properties that generate monthly incomes from the rent to help you repay the loan and make a profit.

Investment Options

You can take part in different real estate ventures in Suwannee County, including buying land, customizing and building a property, buying an existing structure to rent out, selling it for a profit, and so on.

The county typically has various real estate investment options, and a DSCR loan can get you started if you're new to real estate investing.

The Real Estate Market is Triumphant

The real estate market in Suwannee County is booming. Homes are selling quickly and for higher prices than ever before. If you're considering an investment property, now's the time to apply for a DSCR loan and jump into the market.

Despite the competition among real estate investors, everyone gets their fair share of the thriving market. The growing population in Suwannee provides more opportunities for real estate investors. As rental rates are getting much higher and vacancy rates are going low due to the booming population, you won't spend too much time finding new tenants.

Suwannee County, Florida is a Perfect Destination for Everyone

Many people are relocating to Suwannee for various benefits, including affordable housing and low living rates. If you're looking to invest in real estate with your money, this might be the perfect time to secure a DSCR loan to take advantage of the new settlers.

Below are some of the reasons Suwannee County is attracting new residents and creating new opportunities for real investors:

  • Peace and serenity of a rural and urban lifestyle.

  • Great outdoors, fun events, and other recreational activities.

  • A business-friendly background for entrepreneurs.

  • Proximity to major cities like Ocala and Gainesville.

  • Multiple job opportunities for job seekers.

  • An excellent school district.

  • Outstanding healthcare system.

  • The typical Florida benefits of no social security tax.

  • A welcoming rural community.

  • Availability of modern conveniences.

How DSCR Loans Work

The DSCR loans for property investments are reliable mortgages for savvy investors in the bustling real estate industry. The guide below will help you understand more about these loans and how they can help you make a valuable real estate purchase.

DSCR loans are based on investment income instead of gross income, so you do not need to prove income (providing pay stubs, tax information, and proof of employment) to qualify for a DSCR loan. This is an excellent way to strengthen your real estate portfolio without worrying about your financial muscle.

If your target investment property can bring in sufficient income to cover the monthly loan payments, you can apply for a DSCR loan regardless of your income or assets. DSCR loans are perfect for investors lacking the financial resources to implement their excellent real estate investment ideas. The loan will be collateralized by your target property and repaid with income from the same property rather than through traditional income sources.

Miniature home made from wood and word property investment written on wooden base

DSCR Loans Eligibility Requirements in Suwannee County, Florida

While DSCR loans let you purchase investment properties without multiple red tapes, you must meet specific eligibility criteria to qualify. If you are not sure about your qualifications, the DSCR lenders will typically consider the following requirements to determine if you're eligible for a loan:

  • The number of investment properties registered under your name.

  • The prospective rental income of the property you're looking to buy.

  • Loan-to-value (LTV) ratio of 75% to 80%.

  • A credit score of 640 or higher.

  • Maximum loan amount.

  • The loan purpose.

  • Cash reserves.

  • Prepayment penalties.

  • Seller-paid closing costs.

  • Debt-to-income (DTI) ratio.

  • Income and employment history.

  • Closing under the name of an LLC or entity.

  • Loan type (5-year and interest-only ARMs, 30-year fixed rates, etc.)

How to Calculate DSCR

DSCR is usually expressed as a decimal (1.25 and 1.25x, respectively) and is calculated by adding up your monthly income and mortgage payments, which include principal, interest, taxes, insurance (PITI), homeowner's association (HOA) fees, and other fees. 1.25x implies that your property has 25% more income than its monthly mortgage payment. DSCR rates over 1.0 generally indicate a good chance, while rates below 1.0 indicate poor chances.

You can calculate your DSCR using the general formula - DSCR = income/payments. For example, if your investments generate a monthly income of $2,500 and your payments are $2,250, your DSCR would be 1.11. You can improve your DSCR by raising or reducing the rent or monthly expenses.

How to Determine DSCR Income

DSCR income is determined by your monthly property income for a residential investment property.

For commercial property, the DSCR income is based on a property's Net Operating Income (NOI). Your property's NOI is determined by deducting all the operational costs, like taxes and maintenance costs, from your monthly property income.

How to Determine DSCR Payment

Generally, your DSCR payment includes principal, interest, taxes, insurance (PITIA), and HOA fees. To determine your exact payment amount and interest rate, you should contact your DSCR lender. In determining repayment plans, lenders will look at DSCR income, credit score, and debt-to-income ratio.

When applying for a DSCR loan, a significant factor to keep in mind is how expenses and income will affect the repayment. Lower expenses translate into higher income. Increasing your rent can help you generate a substantial income or make a larger down payment on your property to lower your monthly loan payments.

The Minimum DSCR in Suwannee County, Florida

Lenders in Suwannee County may differ, but a mortgage will typically be approved with a DSCR of at least 1.25x. Not all lenders approve loans with a lower DSCR, though.

So it's essential to speak with your regional DSCR lender to understand the minimum DSCR you qualify for and what payment options are available for your situation.

Best Cities in Suwannee County, Florida to Invest in Real Estate

Real estate investment is one of the best ways to create long-lasting wealth, but finding the proper cities in Suwannee County to invest in can seem like an impossible task. With so many variables to consider and variations from city to city, you might not even know where to begin your search.

However, with the help of the following list of the best cities in Suwannee County, Florida to invest in real estate, you'll be well on your way to finding a solid property and making a profit through rental income.

Live Oak

Live Oak is a beautiful city with a population of about 6,800 people. The city is conveniently located near Interstate 75 and US 441, making commuting easy for those who work outside the city limits. Investors will also love Live Oak because it's in one of America's wealthiest regions. The typical home value in Live Oak is $210,469, increasing by up to 21.3% from the last year.

Most people love living here because it's close to Tallahassee without the traffic. Residents enjoy the great schools, low crime rates, and access to all modern amenities. It also has a charming downtown area with locally owned shops, restaurants, and outdoor recreation. With all these conveniences in Live Oak, it's easy to see why there's an influx of new residents, creating substantial opportunities for real estate investors.


Branford is a small town with immense potential. With population growth and economic development, this is an excellent place for anyone looking to invest in real estate. The median home value in Branford is about $225,591, which has increased by 19.4% since the last year. This makes it affordable for first-time buyers and seasoned investors.

So what makes Branford a favorite city for new residents and real estate investors? Branford has plenty of nearby cities that offer amenities such as golf courses and shopping centers for those who want to enjoy more than just rural living. There's plenty of space for farming and hunting, making it a perfect place for outdoor enthusiasts who prefer wide open spaces. Plus, there are lots of beautiful lakes that make for some incredible fishing.


Wellborn is a great place to invest because it has a low cost of living, and it's not too far from Lake City, an even more popular place for people to buy real estate. The average home value in Wellborn is $221,126 based on seasonal adjustments that only include properties in the middle price frame.

Many people are attracted to this city because the schools are top-notch, and there are various places to live and work. You can find anything from single-family homes to condominiums in the area. Several malls and other shopping areas are nearby for residents looking for great shopping opportunities. Additionally, residents don't spend much time commuting since Wellborn borders multiple major highways, providing quick and hassle-free transport conveniences.

Bottom Line

It can be difficult to amass the funds needed to build your real estate portfolio, especially if you're working with a small budget and don't have access to outside capital. Fortunately, the DSCR loan is one type of loan available that allows investors like yourself to build your real estate portfolio quickly and efficiently.

All you need to do is meet a few requirements per your lender and get the financing you need for your investment. Contact your local DSCR lender in Suwannee County, Florida to confirm your eligibility and get started.

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!