DSCR Loan in Florida 2026: Condo and Condo Hotel Restrictions

Florida is one of the top markets for DSCR origination because of the scale of investor activity in short-term rental markets, single-family investor acquisition, and multi-unit investment. It is also one of the most complex markets due to post-Surfside condo eligibility scrutiny, condo hotel restrictions, and geographic concentration limits applied by some lenders.

Condo Project Restrictions in Florida

Following the 2021 Surfside condominium collapse, Fannie Mae and Freddie Mac significantly tightened condo project eligibility requirements. Many Florida condo projects have not completed the required reserve study and deferred maintenance remediation to meet post-Surfside standards. Non-QM DSCR lenders who sell into agency channels are subject to these restrictions on condo projects. The result is that many Florida condo investment properties that were eligible for DSCR financing in 2020 are no longer eligible at most lenders.

Condo Hotel Restrictions

Florida has a substantial inventory of condo hotel units, particularly in Miami, Orlando, and along the coasts. These are individually owned hotel-style units managed by a hotel operator with rental pooling programs. Most DSCR lenders decline condo hotel units because of the mandatory rental pool structure, the commercial nature of the management agreement, and the difficulty of establishing a market rent from a 1007 appraisal on a property that is not functionally a standard residential unit.

Lender Concentration and Florida

• ✦Some DSCR lenders have Florida concentration limits that restrict new origination when their portfolio exposure in the state exceeds a threshold
• ✦Confirm current availability with your AE before submitting Florida condo or coastal property files
• ✦Single-family investment properties in non-coastal Florida markets generally face fewer restrictions and have broader lender availability