Question 1

Why is a Broward condo harder to finance than a Broward house right now?

Accepted Answer

Because the condo market is repricing on a legal deadline, not a taste change. Florida Statutes section 553.899 requires a milestone inspection at 30 years of age for any building of three or more habitable stories held as a condominium, and section 718.112(2)(g) required a structural integrity reserve study by December 31, 2025, with reserve waivers no longer allowed for the items that study covers. Broward has a very large stock of aging coastal condo buildings that fall squarely inside both statutes, and the market has already priced it: Broward condo values are down 19.6% from their January 2024 peak and still falling at 8.4% a year, versus single-family down just 2.9%, the widest such gap of the three South Florida counties. A building that hasn't cleared its inspection, is underfunding reserves, or is carrying an active special assessment can be ineligible for agency financing regardless of what the unit rents for. On a DSCR file we still qualify on the property's cash flow rather than your income, but we need the association's inspection and reserve status before we can size a condo deal. See the DSCR program terms for how we structure that review.

Question 2

Is the '25 years within 3 miles of the coast' milestone rule still true for a Fort Lauderdale condo?

Accepted Answer

No, and that number is outdated. The three-mile coastal trigger was in the original 2022 legislation and has since been removed. Current law under Florida Statutes section 553.899 sets a single statewide clock at 30 years, with recurrence every 10 years, and gives the local enforcement agency the option, not the obligation, to require inspection at 25 years where 'environmental conditions such as proximity to salt water' warrant it. We don't have confirmation of which Broward jurisdictions, if any, have adopted that 25-year local option, so treat every Broward condo as being on the 30-year clock unless the association or the city tells you otherwise in writing.

Question 3

What should I budget for insurance on a Fort Lauderdale rental?

Accepted Answer

More than almost anywhere else in the state, and it's the line that decides whether the deal pencils. As of March 2026, the average Broward homeowners premium including wind coverage was $6,136, and $3,008 excluding wind, versus $4,063 in coastal Pinellas County and $2,650 in inland Lake County. On a $2,794-a-month Fort Lauderdale rental, that premium alone runs about 2.2 months of gross rent a year. Part of the cost is structural: Broward and Miami-Dade are the only two counties in Florida's High Velocity Hurricane Zone, the strictest wind-design and product-approval standard in the state, and part of it is litigation risk, since South Florida property claims are litigated at 27.27% against 8.16% in the rest of Florida. Run a bound quote on the actual address before we lock the ratio on the DSCR calculator.

Question 4

Does the city I buy in inside Broward actually change my property tax bill?

Accepted Answer

Yes, by nearly 7 mills, which is real money on a leveraged rental. Broward's 2025 final millage runs from 16.28 mills in Weston to 23.19 in Lauderdale Lakes, with Fort Lauderdale itself at 18.4464. A 6.9-mill spread on a $400,000 assessment works out to about $2,760 a year (6.9 mills x $400,000 / 1,000). Part of the swing is a hospital-district line: the North Broward Hospital District levies 1.2391 mills against 0.0805 for South Broward, which is why Hollywood, Davie, and Dania Beach each show two different totals depending on which half of the county the parcel sits in. And every investor purchase resets Florida's 10% non-homestead assessment cap to market value at closing, so the seller's current bill always understates what you'll actually owe in year one. Talk to your CPA about your own tax position.

Question 5

Can I underwrite short-term rental income on a Fort Lauderdale DSCR loan?

Accepted Answer

Only once the property's registration is confirmed, and it doesn't come with the deal when you buy it. The City of Fort Lauderdale requires a mandatory vacation rental registration and certificate of compliance for any unit rented to transient occupants more than three times a year for stays under 30 days, and that registration is explicitly not transferable to a buyer under the city code and renews annually by September 30. Operating standards cap occupancy at two persons per sleeping room, require all guest parking on the property's own driveway, and set a noise standard measured at 25 feet between 10 p.m. and 7 a.m. and 50 feet during the day. On top of that, a Broward short-term stay carries 6% state sales tax, Broward's 1% discretionary surtax, and the county's own 6% tourist development tax. We don't have confirmed rules for any other Broward municipality, so if the parcel sits in Hollywood, Pompano Beach, or elsewhere, that city's ordinance has to be checked on its own before nightly income goes into the file. See the DSCR program terms for how we structure STR income once the registration is in your name.

Question 6

Why are Fort Lauderdale rents rising while home values are falling?

Accepted Answer

Because the two series are measuring different things, and a DSCR file benefits from both moving this way. Zillow's rent index for Fort Lauderdale proper hit $2,794 a month in June 2026, up 3.2% year over year, while the city's home value fell 3.1% over the same stretch to $511,582. A softer purchase price against a firmer rent line widens the yield on a new purchase, though it doesn't do anything for a deal you already own at last year's price. The pattern isn't uniform across the county: in condo-heavy inland cities like Lauderhill, rent is falling (-2.7%) at the same time values are dropping fastest, so the yield expansion belongs to the single-family, city-proper story, not to Broward as a whole.

Question 7

What is a DSCR loan, and how do I qualify without tax returns?

Accepted Answer

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Question 8

What rate and terms can I get on a rental loan?

Accepted Answer

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

Question 9

How much can I borrow, and what is the maximum LTV?

Accepted Answer

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

Question 10

What credit score do I need for a DSCR loan?

Accepted Answer

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Question 11

Can I get a DSCR loan on a short-term rental (Airbnb)?

Accepted Answer

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Question 12

Is there a prepayment penalty?

Accepted Answer

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.

Rental / DSCR in Fort Lauderdale

How it works

Run your Rental / DSCR numbers.

Rental / DSCR in Fort Lauderdale: local questions

Rental / DSCR questions, answered.

Guides for Rental / DSCR

Rental / DSCR vs. other options

Other programs in Fort Lauderdale

Funding Fort Lauderdale deals fast.