DSCR (Debt-Service Coverage Ratio) loans allow foreign nationals to qualify for Miami investment property based on the property's rental income, not personal income or US tax returns. Typical terms: 25 to 30 percent down payment, rates 1 to 2 percent above conventional, 30-year amortization. Source: multiple Miami DSCR lenders, Q2 2026 quote benchmarks.

DSCR (Debt Service Coverage Ratio) loans are designed for investment-property buyers who qualify based on the property's expected rental income rather than their personal income. This is the primary financing tool for foreign investors buying Miami rental real estate.

How DSCR Loans Work

The lender evaluates whether the property's projected rental income covers the loan payment. DSCR = gross rental income / mortgage payment. Most lenders require DSCR of 1.0 to 1.25, meaning rental income must equal or exceed 100-125% of the monthly mortgage payment. You don't need tax returns, pay stubs, or US employment records.

Typical DSCR Terms for Foreign Buyers (Q2 2026)

  • Down payment: 25-35%
  • Interest rate: 7.75-9.25% (higher than conventional)
  • Loan term: 30-year fixed or 5/1, 7/1, 10/1 ARM options
  • Prepayment penalty: typically 3-5 years
  • Minimum loan: $150,000-$250,000
  • Maximum loan: $3M-$5M depending on lender

Documentation Required

  • Passport and secondary ID
  • 2 months of bank statements (foreign or US)
  • Property appraisal and rental income projection
  • Existing US or foreign credit report if available (not required)
  • LLC documents if borrowing through an LLC

Top Miami DSCR Lenders for Foreign Buyers

Quontic Bank, America Mortgage Bank, Lendai, Griffin Funding, Lima One Capital, CoreVest. Each has different minimums and sweet spots. Some specialize in short-term rental (Airbnb) DSCR loans; others only lend on long-term rentals.

When DSCR Makes Sense

Foreign investors whose home-country income is hard to document in the US mortgage system. Investors with complex asset structures. Buyers who want to keep personal credit separate from investment property debt. Not ideal for primary residences or second homes where rental income isn't the purpose.

"DSCR is the single biggest financing breakthrough for foreign Miami investors in the last decade. What used to require full financial disclosure now requires only that the property pencil."

Want a DSCR pre-approval on a specific Miami property? Reach out and I will connect you with a DSCR-specialist broker who quotes all active lenders.

Frequently Asked Questions

What is a DSCR loan?

A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on a property's projected rental income rather than personal income. The formula is DSCR = gross rental income / mortgage payment, and most lenders require 1.0 to 1.25.

Can foreign buyers get DSCR loans in Miami?

Yes. DSCR is one of the most common foreign-buyer financing tools in Miami. Typical terms: 25-35% down, 7.75-9.25% interest, 30-year fixed or ARM.

Do I need a US credit score for a DSCR loan?

No. DSCR lenders evaluate the property's rental income and your asset reserves, not your personal credit history.

"I've closed transactions with international buyers across multiple countries. The ones who arrived with a checklist of specific questions on reserves, deposits, and assignment terms, consistently negotiated better on final terms."Gerardo Gonzalez, Licensed Real Estate Agent at Compass
What rental income counts toward DSCR qualification?

Lender-appraised market rent based on comparable rentals, not your own projections. For short-term rental (Airbnb) DSCR loans, lenders use AirDNA or similar data to estimate sustainable rental income.

Can I use DSCR for a primary residence?

Generally no. DSCR is designed for investment properties where rental income covers the mortgage. Primary residences require different documentation.

What happens if the rental income drops below DSCR during ownership?

DSCR is evaluated at loan origination. If rental income drops post-closing, your monthly payment obligation doesn't change; you just carry the gap from personal resources. The lender only rechecks DSCR if you refinance.

Frequently Asked Questions

Do I need a lawyer for a Miami pre-construction purchase?
Florida does not require a lawyer at closing, but I strongly recommend one for pre-construction. A real estate attorney reviews the developer purchase agreement, escrow structure, and assignment clauses. According to the Florida Bar 2025 real estate survey, 78 percent of pre-construction buyers use attorneys. Expect $1,500 to $4,000 in legal fees.
What is FIRPTA withholding and does it affect me?
FIRPTA (Foreign Investment in Real Property Tax Act) requires U.S. buyers to withhold 15 percent of the purchase price when buying from a foreign seller. This does not apply to pre-construction from a U.S. developer. According to the IRS 2026 guidance, FIRPTA applies to resale transactions where the seller is a non-U.S. person.
What is the minimum deposit to reserve a Miami pre-construction unit?
Reservations typically require 10 percent of contract price, refundable during the 15-day rescission period under Florida law. Additional milestones bring total deposits to 30 to 40 percent by top-off. According to Miami Realtors 2026 pre-construction data, this structure applies to the majority of branded towers.
Can I use my pre-construction purchase as a rental investment?
Most Miami branded residences permit 30-day minimum rentals under city zoning. Short-term rentals (under 30 days) are restricted in most Miami-Dade zones. According to AirDNA Miami 2026 data, 30-day branded rentals generate median monthly gross of $8,500 to $14,000 for 2-bedroom units.

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