DSCR Loans for Clearwater Investment Properties

Clearwater DSCR Loan Overview

If you are an investor looking for a DSCR loan in Clearwater, 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 Clearwater.

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 Clearwater.

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 Clearwater without income documentation limiting future opportunities.

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

Clearwater's rental housing profile and rent benchmarks in late 2025 and early 2026 support DSCR loan underwriting. Because DSCR approvals focus on property income, markets with a meaningful renter base and durable rent levels can create stronger cash flow projections for investors.

Clearwater rental demand and housing mix

Active Rental Demand

Census housing tenure data shows an owner occupied rate of 59.1% for 2019 to 2023, which implies renter occupied housing around 40.9%. A renter share at this level supports a steady tenant pool, which matters when lenders evaluate rental income for DSCR qualification.

Clearwater average rent levels

Rent Levels That Support Cash Flow

As of January 2026, the average rent in Clearwater is about $1,566 per month. Rent levels like this can help investors project reliable income, which supports the debt service coverage calculations used for DSCR approvals.

Clearwater income and economic profile

Income Stability and Local Economy

Median household income is $64,440 based on 2019 to 2023 data, reflecting a stable local economy. Economic stability can support rental occupancy, which helps investors maintain consistent property performance when using DSCR financing.

DSCR Financing for Investment Properties in Clearwater

Ready to finance your next investment property in Clearwater? 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 Clearwater 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 Clearwater, 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