Question 1

What should I budget for insurance on a Sarasota DSCR rental?

Accepted Answer

Plan for the wind, not just the headline premium. As of March 2026, Sarasota County's average homeowners premium including wind coverage was $3,457, below Pinellas ($4,063) and well under South Florida. But the same policy priced without wind coverage averages only $1,482, so the wind portion alone is about $1,975, roughly 57% of the total, one of the largest wind-versus-no-wind spreads of any major county in the state. A coastal condo carries its own line: Sarasota's average condo premium including wind is $1,759, above Pinellas ($1,399) and Hillsborough ($1,353). We want a bound quote on the specific address before we size the loan, not a metro average.

Question 2

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

Accepted Answer

Only where the parcel's jurisdiction allows it, and Sarasota draws that line at the city limit. Unincorporated Sarasota County generally prohibits leases under 30 days for single-family and multi-family residential property, with one narrow exception: multi-family property zoned RMF on the barrier islands (Siesta Key, Casey Key, Manasota Key). Inside the City of Sarasota, short-term rentals are legal citywide but capped at a 7-night minimum, and every covered unit has needed an approved, issued Certificate of Registration since January 1, 2025. That registration's owner-occupancy exemption requires proof of Florida homestead eligibility, so a non-homestead investment property doesn't qualify for the exemption and has to register regardless. Confirm the parcel's zoning and registration status before we underwrite nightly income on a DSCR file.

Question 3

What does the property tax bill look like on a Sarasota rental?

Accepted Answer

The seller's bill and your bill are two different numbers. As an investor you pay Florida's 10% non-homestead cap, which resets to full market value the year the property sells, not the 3% cap tied to a seller's homestead exemption. On top of that, total 2025 millage runs 11.4737 in unincorporated Sarasota County against 14.8815 inside the City of Sarasota, and a Siesta Key Village parcel stacks its village improvement district levy of 2.4647 mills on top, to roughly 13.94 mills before any non-ad valorem line. We escrow to the go-forward bill on a non-homestead purchase, not what the current owner is paying. Talk to your CPA about your own tax position.

Question 4

Where does DSCR actually pencil in the Sarasota market right now?

Accepted Answer

On price more than on rent growth, and the correction here ran deeper than in Tampa or Orlando. The metro's mid-tier home value was $423,269 in June 2026, down 16.1% from its August 2022 peak, while single-family rent held closer to flat, up 1.5% year over year to $2,623. In the city of Sarasota itself, June 2026 rent of $2,218 against a home value of $413,325 works out to roughly 6.4% gross yield before taxes, insurance, and any HOA or CDD assessment. Days on market of 89 in July 2026, slower than Tampa's 72, means we underwrite a longer marketing period if this loan ever needs to exit through a sale rather than a refinance. Run the address through the DSCR calculator with a rent figure you can defend, not the metro average.

Question 5

Does Sarasota County collect tourist tax on my short-term rental automatically?

Accepted Answer

Only if the booking runs through Airbnb or HomeAway. Sarasota County's 6.0% tourist development tax applies to rent and to ancillary fees, cleaning, damage-waiver, roll-away bed, and pet fees, on any stay of six months or less. Airbnb and HomeAway (and affiliated sites) collect and remit that tax on the owner's behalf, but a listing booked through any other platform is the owner's responsibility to collect and remit directly. A trailing STR income statement that assumes full platform remittance across the board can overstate net operating income on any booking that didn't come through those two platforms. We size a DSCR file off what the property nets after tax, not the gross rent roll.

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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