Question 1

Why can an older Miami-Dade condo be hard to finance even with strong rent?

Accepted Answer

Because the building can go ineligible before the rent roll ever matters. Florida's milestone inspection law requires condo and co-op buildings of three habitable stories or more to be inspected by December 31 of the year they turn 30, and Miami-Dade separately runs its own recertification under section 8-11(f) of the county code that hits coastal buildings built in 1998 or later at 25 years and inland buildings built in 1993 or later at 30. Since a 2024 change, associations can no longer waive reserves for structural integrity reserve study items, which is why an inspection finding now turns into a special assessment instead of getting voted away. Under Fannie Mae's Selling Guide, a project is ineligible for a failed jurisdictional inspection or unfunded repairs over $10,000 per unit due within 12 months. That chain is a real driver behind Miami MSA condo values falling 6.2% year over year (Aventura down 7.9%) while single-family sits at an all-time high on Case-Shiller. Ask for the building's inspection and reserve status before you underwrite a condo DSCR file, and see conventional investment financing for how a warrantable, unaffected building compares.

Question 2

Wasn't the 25-year coastal milestone rule repealed in Florida?

Accepted Answer

Statewide, yes, but Miami-Dade adopted its own version, which is why the number still applies here. The original 2022 law set 25 years for buildings within three miles of the coast; SB 154, signed June 9, 2023, deleted that statewide trigger and made 30 years the default everywhere, leaving 25 years as an option a local enforcement agency may adopt for local conditions. Miami-Dade is one of the counties that adopted a 25-year coastal trigger in its own section 8-11(f) recertification programme, on top of the state's 30-year milestone inspection for condo and co-op buildings. So a coastal Miami-Dade condo can face two inspection clocks, the state's at 30 years and the county's at 25. Confirm which clock applies to a specific building before quoting DSCR terms on its rental income.

Question 3

What should I budget for insurance and flood coverage on a Miami-Dade rental?

Accepted Answer

At the expensive end of the most expensive state, and flood is becoming close to mandatory. As of March 2026, the average Miami-Dade homeowners premium including wind was $5,975, versus $3,610 in Orange County (Orlando) and $2,650 in Lake County. A condo unit owner policy averages $2,801 in Miami-Dade against $1,295 in Orange County, more than double. Citizens Property Insurance now requires flood coverage on wind policies for any home outside a flood hazard area with $400,000 or more in dwelling replacement cost, effective January 1, 2026, expanding to every Citizens wind policy regardless of value on January 1, 2027. Miami-Dade's mid-tier single-family value is $569,830, so most investment houses in this county already clear that threshold. Get a bound quote on the specific address, including flood, before we lock the DSCR ratio.

Question 4

Why does the cheapest house sometimes carry the highest property tax in Miami-Dade?

Accepted Answer

Because millage runs backwards from price here. As a non-homestead owner, the highest-value submarkets carry the lowest 2025 millage: Key Biscayne 15.51 mills, Pinecrest 17.53, Coral Gables 18.19. The lower-priced submarkets carry the highest: Opa-locka 24.00 mills, Miami Gardens 22.39, North Miami 22.14. The City of Miami itself sits at 19.99 mills and unincorporated Miami-Dade at 16.93. An investor pays the non-homestead assessment cap, which resets to full market value on purchase, never the 3% homestead cap a prior owner-occupant may have enjoyed, so a seller's tax bill will understate what you'll actually owe. Run the actual parcel's city and millage before penciling the deal.

Question 5

Can I use short-term rental income on a Miami-Dade DSCR loan?

Accepted Answer

Only where the parcel and city allow it, and Miami-Dade runs three different regimes. Unincorporated Miami-Dade licenses vacation rentals under section 33-28 of the county code with a Certificate of Use required before listing, an occupancy cap of two people per bedroom plus two more up to 12 overnight, and a rule that in Estate or Low Density residential areas the responsible party must reside in the home more than six months a year, which rules out an absentee investor entirely in those zones. Miami Beach defines short-term as less than six months and one day and bars it in all single-family homes and many multifamily zoning districts; its litigated fine schedule was capped by Florida's statutory limits of $1,000 per day for a first violation and $5,000 for a repeat one in City of Miami Beach v. Nichols (Fla. 3d DCA, 2020). City of Miami's own STR rules turn on the parcel's Miami 21 transect zone and need to be confirmed directly with the city. Transient taxes also differ: 6% in most of the county, but 3% county plus a 4% city resort tax in Miami Beach. Tell us the municipality, the zoning category, and the licensing status before we underwrite nightly income. See the DSCR program terms for how STR income factors into the loan once that's confirmed.

Question 6

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 7

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 8

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 9

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 10

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 11

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.

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