Davie · DSCR loans near the campuses and beyond
DSCR Loans for Davie Investment Properties
Investor financing for Davie townhomes, houses and small acreage rentals that qualifies on rent, with an honest walk through the interest-only option many investors ask about first.
Davie DSCR Loan Overview
If you are an investor looking for a DSCR loan in Davie, this financing option allows you to qualify based on property cash flow rather than personal income.
Davie has an unusual mix for a Broward suburb. Its eastern side holds one of the largest education and health clusters in the state: Nova Southeastern University with its medical, dental and pharmacy schools, Broward College’s central campus, and FAU’s Davie campus. Its western side is horse country, with ranch lots, barns and acreage. Rental demand follows the eastern side: graduate students, residents, faculty and hospital staff who want a townhome or house within a short drive.
Underwriting on rent alone appeals to the physicians, dentists and business owners who often buy rentals here, since their tax returns are complicated. If you are buying your own home, see the Davie mortgage rates page.
Why Davie Is a Strong Market for DSCR Loans (2025 to 2026)
Renter Occupancy Share
About 35.0 percent of Davie households rent and 65.0 percent own. Rentals are concentrated near the campuses and along University Drive, where demand is steady from August through May and leases turn over on the academic calendar.
Measured Rent Levels
In January 2026, Davie listings averaged about $2,369: roughly $1,627 for a studio, $2,082 for a one-bedroom and $2,474 for a two-bedroom. Three-bedroom townhomes that students share commonly rent in the high $2,000s.
Income Profile and Rental Stability
Davie households earn a median of about $87,171, per the Census. Combined with guarantor-backed student leases and medical staff tenants, that supports dependable collections across the town’s rental stock.
Understanding DSCR Loans for Davie Investors
A lender divides the rent by PITIA, the sum of principal, interest, property taxes, insurance and association dues. With interest-only, the principal piece is zero for the first several years, so the payment is lower and the ratio is higher. Many DSCR lenders calculate the ratio on that interest-only payment, which is why investors ask about it.
Interest-only does three things worth understanding before choosing it. It lowers the payment by less than people expect, because in the early years of a 30-year loan most of the payment is interest anyway. It leaves the balance unchanged for the whole interest-only period, so equity grows only through appreciation. And when the period ends, the full balance is repaid over the remaining term, so the payment rises above what a regular loan would have cost all along.
Interest-only fits a Davie rental when you expect to sell or refinance within ten years, or when you plan to pay down principal voluntarily in good years. It is a poor fit if you are counting on the low payment forever.
A Davie DSCR Example
A three-bedroom townhome near NSU at $430,000, renting for $2,700 with $300 in HOA dues and 25% down. One column is a standard 30-year loan; the other has ten years of interest-only payments, then twenty years of principal and interest.
| Loan $322,500 at 7.750% | 30-year amortizing | 10 years interest-only |
|---|---|---|
| Principal and interest, years 1 to 10 | $2,310 | $2,083 |
| PITIA, years 1 to 10 | $3,340 | $3,113 |
| DSCR at closing | 0.81 | 0.87 |
| Loan balance after 10 years | $281,434 | $322,500 |
| Principal and interest, year 11 onward | $2,310 | $2,648 |
| Rent needed for 1.00 in year 11, if costs rise 3% a year | $3,695 | $4,032 |
| Interest paid over 10 years | $236,186 | $249,938 |
Tax $430 a month at Broward’s average millage without homestead; landlord insurance $300 for a townhome where the association covers part of the exterior. The year-11 row grows tax, insurance and dues by 3% a year as an assumption. The rate is for illustration, about a point above this morning’s owner-occupied conforming par; many interest-only DSCR loans price slightly higher than amortizing ones.
Interest-only buys about $228 a month and a modest lift in the ratio for ten years. It costs about $13,752 more in interest over that decade, leaves you with $41,066 less equity, and raises the payment by $565 a month in year 11. If Davie rents keep growing the way they have, the property can absorb that. If they do not, plan to refinance or sell before the reset.
Davie DSCR Calculator
- Loan amount
- $450,000
- Principal and interest
- $3,224
- Full payment (PITIA)
- $4,313
- Rent needed for 1.00
- $4,313
- Rent needed for 1.25
- $5,391
Preset to a $600,000 three-bedroom house in eastern Davie renting for $3,300. The calculator uses a fully amortizing payment; an interest-only payment would be lower in the first years.
Today’s Broward County ratesHow DSCR loans workMore mortgage calculators
DSCR Financing for Investment Properties in Davie
Lenders we compare for Davie rentals offer fixed-rate, adjustable and interest-only DSCR loans for purchases and refinances. What they typically expect:
- A ratio of 1.00 or higher for standard pricing, or more down below it
- Credit from the mid-600s, often higher for interest-only
- Reserves of several months of PITIA
- An appraisal with a rent schedule and, for student rentals, a standard lease rather than per-bedroom contracts
- Lot size and use within the lender’s residential limits
If you are a resident or attending physician buying your own home near the campus, a physician loan may fit better than any investor loan. Our Davie mortgage broker team can compare both.
DSCR Loan FAQs for Davie Investors
What is a DSCR loan?
A loan on a rental property that qualifies by comparing the property’s monthly rent with its total housing payment. It does not require personal income documents.
Do DSCR lenders qualify interest-only loans on the lower payment?
Many do, which raises the ratio. Some use the fully amortizing payment instead. We tell you which method each lender uses.
What happens when the interest-only period ends?
The loan starts repaying principal over the remaining term, usually twenty years after a ten-year interest-only period. The payment rises above a regular 30-year payment.
Can I rent to students by the room?
Lenders generally use a standard market rent for the whole property. Per-room leasing can earn more but is rarely counted that way, and local rules on unrelated occupants may apply.
Are western Davie ranch properties eligible?
Some are. Lot size, outbuildings and agricultural use can exceed DSCR limits. We review the parcel before you commit.
How much do I need to put down?
Usually 20% to 25% with a ratio of 1.00 or better, and 25% to 30% when the ratio is lower or the loan is interest-only.
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Compare amortizing and interest-only for your Davie rental
Send the property and the rent. On Mortgage will price both payment types, show the year-11 reset and compare DSCR lenders.