DSCR Loans for Canadian Investors — Florida Rental Property Financing

What Is a DSCR Loan and Why Is It the Best Option for Canadian Investors?

A DSCR (Debt Service Coverage Ratio) loan is a mortgage product that qualifies borrowers based entirely on the rental income potential of the investment property — not the borrower's personal income, employment, or tax returns. For Canadian investors, this program removes the most significant barriers to US mortgage financing: the requirement for US-sourced income, US tax returns, and a US Social Security Number.

The concept is straightforward. If the property you are buying generates enough rental income to cover the mortgage payment (principal, interest, taxes, insurance, and any HOA or condo fees), you qualify. The lender evaluates the property as an income-producing asset, not you as a wage-earning employee. This makes DSCR loans the preferred financing tool for Canadian investors building real estate portfolios in Florida.

David Nataf at Cross Border Loans structures DSCR loans specifically for Canadian investors. With dual licensing in Florida (NMLS #2613311) and Quebec (AMF #3001986744) and more than 25 years of banking and credit experience, he works with DSCR lenders who have established programs for foreign national investors — not lenders who treat foreign nationals as edge cases.

How the DSCR Ratio Is Calculated

The DSCR ratio is a simple fraction: monthly gross rental income divided by total monthly housing expense (PITIA). A ratio of 1.0x means the rental income exactly equals the mortgage payment. A ratio above 1.0x means the property generates positive cash flow. A ratio below 1.0x means the property does not fully cover the payment from rent alone.

DSCR Program Specifications

DSCR Loans for Short-Term Rental Properties in Florida

Florida's tourism-driven economy makes short-term rental properties — those listed on Airbnb, VRBO, Booking.com, and similar platforms — attractive investments for Canadian buyers. DSCR programs are available for these properties with specific qualification approaches.

For existing short-term rentals with operating history, lenders may use actual revenue from the prior 12 months as documented through platform income statements, tax returns, or certified profit and loss statements. For new acquisitions without operating history, lenders typically use a market rent analysis from a short-term rental analytics provider (such as AirDNA, Mashvisor, or similar tools) to project income. Most lenders apply a discount to short-term rental projections — commonly using 75% of projected gross revenue — to account for vacancy, seasonality, and management expenses.

Short-term rental DSCR loans are available for properties in Florida's high-demand tourism markets including Miami Beach, Fort Lauderdale, Boca Raton, the Florida Keys, Orlando (near Disney and Universal), Tampa, Clearwater Beach, Naples, Sarasota, and Gulf Coast barrier islands.

Building a Florida Rental Portfolio as a Canadian Investor

Because DSCR loans qualify on property income rather than personal income, there is no practical limit to the number of investment properties a Canadian investor can finance. Each property is evaluated independently. Owning five properties does not make it harder to finance a sixth — as long as the sixth property has sufficient rental income to cover its own mortgage payment.

This is fundamentally different from conventional US mortgage lending, where each property adds to the borrower's total debt obligations and eventually limits their ability to qualify for additional financing. For Canadian investors in particular, who cannot document US income at all, DSCR programs are the only scalable path to building a multi-property portfolio in Florida.

Cross Border Loans works with Canadian investors at every stage of portfolio building — from the first Florida investment property to the tenth. David Nataf helps structure each acquisition to optimize DSCR ratios, select the right property types and markets, and match each deal with the most competitive lender for that specific scenario.

Florida Markets with Strong DSCR Performance for Canadian Investors

The best markets for DSCR qualification are those where rental income is strong relative to property prices and carrying costs. In South Florida, Fort Lauderdale, Hollywood, and Pompano Beach offer attractive DSCR ratios for long-term rentals. Boca Raton and Delray Beach perform well for seasonal and short-term rentals during the November-through-April high season. In Central Florida, the Orlando-Kissimmee corridor near major theme parks generates strong short-term rental income year-round. On the Gulf Coast, Sarasota, Bradenton, and Fort Myers offer favorable price-to-rent ratios for long-term rental investors. Tampa and St. Petersburg have seen rising rental demand that supports strong DSCR performance. The Florida Keys and coastal barrier islands command premium nightly rates for short-term rentals.