Skip to content

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

If you're looking for a no-doubt way to quickly build up your real estate portfolio in Washington County, Florida, look no further than DSCR loans. DSCR loans, or debt service coverage ratio loans, are commercial loans that allow you to use the income from your properties to finance the purchase of additional properties. That way, you can grow your portfolio quickly and with minimal hassle.

DSCR loans are becoming increasingly popular as more investors look for ways to grow their portfolios quickly. You should know a few things if considering taking out a DSCR loan.

Here is an overview of DSCR loans and all you need to know about taking one in Washington County, Florida. Let's dive in right away.

What are DSCR Loans?

DSCR stands for Debt Service Coverage Ratio, which is used to determine the ability of a company to repay its debts. DSCR loans are a type of commercial loan that is based on the debt service coverage ratio (DSCR).

It is common for investors to use DSCR loans to expand existing properties or acquire new ones. The loan amount that a business can qualify for is typically based on its DSCR. If a business has a strong DSCR, it may be able to qualify for a larger loan amount. Hence, they are viable for acquiring properties with stable cash flow.

Why Get a DSCR Loan in Washington County, Florida?

Washington County, Florida, is a great place to invest in property. Washington County was once a sleepy rural area known for nothing. Now it's a thriving community with many maple syrups and apple farming.

You first need to know that many different types of properties are available for sale in this area. You can find all kinds of options if you want a DSCR loan for a property here. You will also find a wide range of different types of houses and apartments available for sale as well.

Another reason investing in property in Washington County, Florida, is such a good idea is that it's very affordable. The median home value in Washington County is around $45,000. This means that this area might be perfect for you if you're on a tight budget but still want to build your property portfolio.

The quality of a school system is one of the key factors that attract people to a place. The county has an excellent school system, such as Washington County Christian School, Kate M. Smith Elementary School, and others. Young families find the county great for schooling their kids. Therefore, a sound school system is critical in attracting property investment and boosting the local economy.

DSCR loans are easy to obtain to build your real estate portfolio in Washington. To qualify for a DSCR loan, you don't need strong credit or an income. DSCR loans are a great way to finance the purchase of income-producing real estate. Taking a DSCR loan in this county can enable you to purchase multiple properties and build a portfolio of rental properties.

How does a DSCR loan work?

Due to the extensive documentation that traditional mortgage lenders typically require, it can be challenging for investors to demonstrate their capability of repaying such loans.

As an alternate method of financing, DSCR loans don't consider an investor's specific requirements, such as income. Instead, these loans focus on the property's income potential.

When applying for a DSCR loan in Washington County, the rental income from the property will be sufficient to qualify for a loan. Lenders look at the property's DSCR to ensure that its income can cover the monthly payments on the loan. Therefore, you will not need to showcase your tax returns and pay stubs to prove income.

If the property income sufficiently shows its ability to repay the loan and the interest, then there is a good chance that your application for a DSCR loan will go through. That's how DSCR Loans work.

How is DSCR Calculated?

The ratio calculates a company's net operating income by its debt payments. To calculate DSCR, we must determine a company's net operating income.

Net operating income equals a company's total revenue minus its operating expenses. Once we have determined a company's net operating income, we can divide it by the property's total debt payments to get the DSCR.

A ratio of 1.0 or higher is considered healthy, while a ratio of less than 1.0 indicates that a property does not have enough income to cover its debt payments.

For example, a property has a total revenue of $100,000 and operating expenses of $50,000. This would give the property a net operating income of $50,000. If the company has debt payments are $35,000, then DSCR would be:

DCSR = Net operating income/ total debt payments

$50,000/$35,000 = 1.42

This means that the borrower can comfortably meet the expenses and service the debt.

Also, let's say a company has a net operating income of $100,000 and total debt obligations of $200,000. Its DSCR would be:

$100,000/$200,000 = 0.5

This means that the property cannot service its debt and, therefore, is not eligible for a DSCR loan approval. Therefore, DSCR is an essential metric for lenders when deciding whether to extend credit.

How to determine DSCR income

The DSCR is normally taken for residential properties, meaning the property's monthly rent.

For commercial real estate, the DSCR is typically the property's annual net operating income (NOI). In other words, the DSCR income for commercial property equals its income minus maintenance expenses, management expenses, taxes, and related operating costs.

How to determine DSCR payment

To determine the DSCR payment, we use the PITIA method - principal, interest, taxes, insurance, and HOA.

The PITIA method is a simple way to calculate your monthly mortgage payment. It includes all of the costs associated with your home loan. Here's how it works:

  • Principal - The total amount you owe on your mortgage.

  • Interest - The amount that you pay in interest each month. The interest payment may be fixed or variable.

  • Taxes - The federal income tax rate and state and local taxes paid on your property taxes.

  • Insurance - these fees include your homeowner's or renter's insurance policy to cover various incidents in your home ( such as fire damage or theft of personal property).

  • HOA Fees - The homeowner's association fees depend on the neighborhood association rules that govern how much owners must pay.

It would be best to work with a DSCR lender to help you determine the exact payment amount. Different scenarios affect DSCR. These are changes in both payments and income.

Scenario 1 - Increase in Income

Income Payments DSCR
$3000 $3000 1.0
$3500 $3000 1.17
$4000 $3000 1.3

As seen, the increase in income increases the DSCR.

Scenario 2 - Decrease in payments

Income Payments DSCR
$4000 $3500 1.14
$4000 $3000 1.3
$4000 $2500 1.6

As seen, lower payments improve the DSCR.

Therefore, a property investor should capitalize on a property with a high income and few payments. This would improve the property's DSCR and increase the chances of DSCR loan approval.

Real estate investor signing a contract to buy home

What is the minimum DSCR to qualify in Washington County, Florida?

Most lenders in Washington County require you to have a minimum debt service coverage ratio (DSCR) of 1.25. Your monthly income must be at least 1.25 times your monthly debt payments.

However, some lenders may still require a lower DSCR than this. Therefore, it's good to consult your lender to know their minimum DSCR requirements. They will analyze your property and help you determine its income potential and payments.

What are the five best cities to invest in Washington County, Florida?

When it comes to investing in property, there are a lot of factors to consider. Location is one of the most critical factors, and picking a place with growth potential is essential.

To invest in property in Washington County, Florida, consider these five best cities.


Caryville is a beautiful city with a lot of potentials. The area doesn't have a vast population, but it's growing steadily. This is an excellent place to start for real estate investment.

This city has many things to do, like fishing at Ponce de Leon Springs State Park and other nice fishing spots. The weather is delightful during the summer, making it perfect for outdoor activities like hiking or biking.

There are also plenty of options for shopping and dining in this area. You can visit one of the many shopping centers or find some great restaurants nearby. Also, if you want to go out with friends or family, Caryville has several bars and clubs where you can hang out on Friday nights or Saturday mornings when the weather is nice. It is clear that the city has growth potential, and early investors will have a great chance of making good returns here.


Regarding investment property, Chipley city in Washington County is a prime location. The area is rich in resources and has excellent infrastructure, which is a significant selling point for any investment property. Thanks to the city's proactive planning, the robust infrastructure in Chipley increases the properties' overall value. This, in turn, makes the property market more attractive to potential investors.

The city boasts beautiful scenery and its tropical climate, making it one of the best places to live and for property investment. The weather conditions are moderate all year round, so people can enjoy staying here without difficulty.

As people look for houses, the real estate market in Chipley City has seen a significant increase over the past few years. The recreational facilities, such as "Falling Waters Falls," have led to people coming here from near and far. Consequently, Chipley has become very popular among people looking for rental properties or homes for sale.


Ebro City, Washington County, Florida, is an excellent place to invest in real estate. Many people keep looking for rental houses in the city to take advantage of the growing economy. Firstly, the Pine Log State Forest is a state park in Florida that attracts people from all over. The park has continually boosted the investment value of the city.

Also, the homes in Ebro are pretty affordable. The typical home is around $1575, making it an ideal location for investors looking to start their property investment journey.

There are also plenty of shopping opportunities near this region, including Dollar General. Residents may easily access essential items, such as clothing, home decor, cleaning supplies, groceries, and seasonal items.

Another critical aspect of the city is its low unemployment rate. Ebro has an unemployment rate of 4.8%, which is lower than the US average of 6.0%. A low unemployment rate often indicates a strong economy, leading to increased housing demand and higher prices. This makes Ebro an excellent place to invest in property, as you're more likely to see a return.


Vernon, Florida, is located around 1 hour from Panama Beach and a few minutes from Cypress Springs. These recreational facilities can help attract and retain tenants and improve residents' overall quality of life. Hence, consider properties near such recreational facilities for a property that will provide a higher return on investment.

In Vernon, schools are rated highly due to their academic performance. Such schools include Vernon Elementary School and Vernon Middle School. Good schools are a significant draw card for families looking to buy a property, and this increased demand drives up prices. Properties in areas with good schools can be a wise investment, as they are likely to appreciate over time.


Wausau has a lot to offer for both residential and commercial properties. The first thing that makes Wausau so appealing is its location. It is close to many other cities and towns, such as Sunny Hills, Hulaw, Kent Mill, and Chipley. This makes it easy to get around and visit different areas.

Wausau city has many amenities suitable for property investment, such as shopping malls, restaurants, banks, hospitals, and schools. Furthermore, several industries are based in the area, such as agriculture, manufacturing, and tourism.

3 Tips for Property Investments in Washington County, Florida

If you're considering investing in property in Washington County, Florida, here are a few tips to help you get started.

Work with experts

Regarding real estate, you must work with an expert who knows the local market. An expert can help you find the right property for your needs.

An excellent real estate agent can help you find the right property. A suitable DSCR lender will help you determine the property's DSCR to see if it qualifies for a DSCR loan. It's, therefore, essential to work with an experienced and knowledgeable team of professionals with the knowledge and expertise to get you the best possible returns on your investment.

Perform local market research

Investors who want to make sure they buy into an area with stable growth will want to do their due diligence before investing in a property. This means researching current trends in the local economy and looking at current sales in the surrounding area.

Research also involves comparing similar properties in different areas. It gives investors a better idea of how much money they should expect to make over time and whether or not there is enough demand for new developments in the area.

Have an investment plan

An investment plan is essentially a roadmap for your investment. It can help you set goals, track progress, and decide where to invest your money. Perhaps you want to diversify your property portfolio in Washington County, Florida.

Whatever your reason, an investment plan can help you achieve your goals. Without an investment plan, it can be easy to make impulsive decisions that may not be in your best interest.

Final Remarks

The DSCR loan program allows investors to finance their real estate portfolio quickly, effortlessly, and effectively without traditional financing. The program is simple, allowing you to get into your properties as soon as possible.

Being a no-doc facility, DSCR loans could be the best option if you want to build your property in Washing County, Florida as quickly as possible.

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!