DSCR Loans for Boca Raton Investment Properties

Boca Raton DSCR Loan Overview

If you are an investor looking for a DSCR loan in Boca Raton, this financing option allows you to qualify based on property cash flow rather than personal income.

With a DSCR loan from On Mortgage, investors can focus on the rental performance of the property instead of traditional income documentation such as tax returns, W-2s, or pay stubs. This approach is well suited for investors purchasing or refinancing rental property in Boca Raton.

A DSCR (Debt Service Coverage Ratio) loan is an investment loan where approval is based on whether the property’s rental income is sufficient to cover the monthly mortgage payment. Lenders evaluate the property’s cash flow rather than the borrower’s personal income, removing many of the limitations found in conventional loan programs.

The DSCR is calculated by dividing the property’s net operating income by its total debt obligation. A ratio of 1.0 means the property generates enough income to cover the loan payment, while higher ratios indicate stronger cash flow and lower perceived risk. Because approval is tied to property performance, DSCR loans align well with income-producing real estate in markets like Boca Raton.

DSCR loans are commonly used for long-term rentals, short-term vacation properties, and small multifamily investments. They offer flexible underwriting, faster approvals, and a scalable financing solution for investors looking to grow a rental portfolio in Boca Raton without income documentation limiting future opportunities.

Why Boca Raton Is a Strong Market for DSCR Loans (2025 to 2026)

Boca Raton's rental and housing dynamics in late 2025 and early 2026 create compelling conditions for DSCR loan underwriting. A sizeable renter population, rising rent levels, and a balanced vacancy rate help properties generate consistent rental income, which is a key factor lenders evaluate when approving DSCR financing.

Boca Raton rental demand and housing mix

Strong Rental Demand

As of late 2025, about 34% of Boca Raton households are renter occupied, supporting active rental demand in the city. This tenant base helps investment properties produce predictable cash flow, which is an important factor in DSCR qualification.

Boca Raton rent levels

High Average Rent Levels

Average rents in Boca Raton are around $2,900 per month as of January 2026, with strong pricing across studio through three bedroom units. Higher rents improve cash flow projections for DSCR calculations and help investment properties support monthly debt service.

Boca Raton income and economic profile

Affluent and Growing Market

With a median household income around $102,700 and a population nearing 99,000, Boca Raton attracts professionals and entrepreneurs. This economic strength supports steady rental demand and property values, contributing to a stable environment for DSCR focused investment financing.

DSCR Financing for Investment Properties in Boca Raton

Ready to finance your next investment property in Boca Raton? On Mortgage works with real estate investors, short-term rental owners, and portfolio buyers to secure DSCR financing with flexible terms and a streamlined approval process.


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DSCR Loan FAQs for Boca Raton Investors

Answers to common questions investors have about DSCR loans and how qualification works.

What is a DSCR loan?

A DSCR loan is a real estate investment loan where approval is based on the rental income of the property rather than the borrower's personal income. Lenders focus on whether the property produces enough cash flow to cover the monthly mortgage payment.

What DSCR ratio do lenders typically require?

Most lenders look for a DSCR between 1.0 and 1.25, depending on the loan program and property type. A ratio of 1.0 means the property covers its mortgage payment, while higher ratios indicate stronger cash flow.

Can DSCR loans be used for short term rentals?

Yes. Many DSCR programs allow financing for short term rental properties. Lenders may use market rent estimates or documented rental income from platforms such as Airbnb and VRBO.

Are tax returns required?

Most DSCR loans do not require tax returns, W-2s, or pay stubs. On Mortgage can explain what documentation is needed based on the specific property and loan structure.

Is there a limit on the number of properties I can finance?

No. Unlike many conventional loan programs, DSCR loans typically do not limit the number of financed investment properties, making them well suited for portfolio investors.

What property types are eligible?

DSCR loans can be used for single family rentals, condos, townhomes, small multifamily properties, vacation rentals, and certain mixed use investment properties in Boca Raton, subject to lender guidelines.

We Serve the Entire State of Florida

At On Mortgage, we proudly provide DSCR mortgage solutions to homebuyers and investors throughout Florida. Here are some of the cities we serve near Miami, but we aren’t limited to these locations:

• Boca Raton • Boynton Beach • Cape Coral • Clearwater • Coral Springs • Davie • Daytona Beach • Deerfield Beach • Doral • Fort Lauderdale • Hallandale Beach • Hialeah • Hollywood • Homestead • Jacksonville • Kendall • Lauderdale Lakes • Miami • Miami Beach • Miramar • Orlando • Parkland • Pembroke Pines • Pine Hills • Plantation • Pompano Beach • Port Saint Lucie • Saint Petersburg • Sunrise • Tallahassee • Tampa • West Palm Beach • Weston