What is a DSCR loan and how does it work in Palm Beach?

A DSCR (Debt Service Coverage Ratio) loan qualifies you based on the rental income a Palm Beach property generates — not your personal income, tax returns, or W-2s. Lenders calculate your DSCR ratio: gross monthly rent divided by your total monthly PITIA payment. At $4,500,000 with 20% down in Palm Beach, your estimated PITIA on a DSCR loan is approximately $34,546/month. An estimated gross monthly rent of $14,400 produces an LTR DSCR ratio of 0.42x. Most lenders require a minimum ratio of 1.0; some offer no-ratio products for investors who prefer a larger down payment. DSCR loans allow you to close in an LLC, have no limit on financed properties, and don't count debt-to-income from other rentals.

How much do I need to put down to buy an investment property in Palm Beach?

For a DSCR loan in Palm Beach: minimum 20% down = $900,000 on a $4,500,000 property. For a conventional investment loan (Fannie/Freddie): minimum 15% for SFR, 25% for 2-4 unit = $1,125,000 at 25%. For an FHA house-hack (you live in one unit of a 2-4 unit): 3.5% down. For a VA house-hack (veterans occupying one unit of a 2-4 unit): 0% down. Higher down payments reduce your PITIA and improve your DSCR ratio, which can unlock better pricing tiers. If your DSCR ratio is below 1.0 at 20% down, going to 25-30% down is often the solution.

Can I buy an investment property in Palm Beach without showing my income?

Yes — a DSCR loan in Palm Beach requires no personal income documentation. Lenders look only at the rental income of the property being financed. This is ideal for self-employed investors, business owners with complex tax returns, or anyone with significant rental portfolios that make personal DTI calculations impractical. You'll need: a minimum 20% down payment ($900,000 on a $4,500,000 property), 640+ credit score (740+ for best pricing), and a property appraisal confirming market rent supports a DSCR ratio ≥ 1.0. Tayton Capital works with DSCR lenders that offer no-ratio products if the appraised rent falls below threshold.

What credit score do I need for a DSCR loan in Palm Beach?

Most DSCR lenders in Palm Beach require a minimum 640 credit score. Pricing tiers typically improve significantly at 680, 720, and 740+. At 740+, you access the best DSCR investor rates — currently around 7.25-7.5% for 30-year fixed on a Palm Beach investment property. Below 680, expect higher rates and more limited lender options. DSCR credit scoring looks at the middle of 3 bureau scores for the borrower with the lowest score (if buying with a partner). Credit score alone doesn't disqualify you — a strong DSCR ratio (1.25+) and larger down payment can offset a lower score with some lenders.

Investor Loans · Palm Beach, FL

Investment Property & DSCR Loans in Palm Beach, FL — 2026 Investor Guide

Palm Beach attracts Florida investors seeking a combination of rental income and appreciation in one of the state's most active real estate markets

20% Down (DSCR)

$900,000

Est. Monthly Rent (LTR)

$14,400

DSCR Ratio (LTR)

0.42x

Est. STR Monthly Gross

$12,200

DSCR Ratio (STR)

0.35x

Gross Rent Multiplier

26.0x

Investing in Palm Beach, FL — Market Analysis

Palm Beach attracts Florida investors seeking a combination of rental income and appreciation in one of the state's most active real estate markets. With a median home price of $4,500,000, acquiring a rental property in Palm Beach requires a minimum $900,000 down payment for a DSCR loan (20% of purchase price) or $1,125,000 for a conventional investment property loan (25%). At current DSCR investor rates around 7.5%, your estimated monthly payment on a $3,600,000 DSCR loan is approximately $25,171 in principal and interest, with a total PITIA (including taxes and insurance) of approximately $34,546/month.

For a long-term rental strategy, Palm Beach properties at the median price point generate an estimated $14,400/month in gross rent — a gross rent multiplier of approximately 26.0x. After accounting for all operating expenses including vacancy, property management, maintenance, capital reserves, taxes, and insurance (typically 35% of gross), estimated net operating income runs around $9,360/month. This produces an estimated cap rate of 2.5% and an estimated monthly cash flow of $-15,810 after P&I on a DSCR loan. The LTR DSCR ratio of 0.42x reflects the premium pricing in Palm Beach relative to rents — common in appreciation-driven markets. Most investors here pursue STR income, portfolio/blanket lending, or no-ratio DSCR products that don't require a minimum DSCR.

Short-term rental is an active strategy in Palm Beach. Based on typical occupancy and nightly rates for this market, a well-managed STR property could generate approximately $12,200/month in gross revenue. This produces an estimated STR DSCR ratio of 0.35x — still below DSCR minimums at standard rates — larger down payment or no-ratio product needed. Note: DSCR lenders that accept STR income typically require 12-24 months of AirDNA or VRBO data, or a signed lease agreement from a property management company projecting annual revenue. Estimates above are for illustration only — actual performance depends on property location, amenities, and management quality.

Palm Beach County uses the standard conforming limit of $832,750. Most DSCR investor loans in Palm Beach at current prices fall at or below this threshold, qualifying for standard investor DSCR pricing. Properties above $832,750 require jumbo DSCR or portfolio financing, which Tayton Capital also offers.

Tayton Capital finances investment properties in Palm Beach across all major product types — DSCR, conventional investor, jumbo, and portfolio — with no limit on the number of properties financed. We close investment transactions remotely, including LLC vesting and title coordination.

Investment estimates are illustrative. Rental income, DSCR ratios, cap rates, and cash flow figures above assume a purchase at the median price and market-average rent for illustrative purposes only. Actual performance depends on the specific property, location within Palm Beach, property condition, management quality, and market conditions at time of purchase. Request a property-specific analysis from Tayton Capital before making any investment decision.

Rental Income Analysis — Palm Beach Investment Properties

Understanding the rental math in Palm Beach helps you underwrite accurately before making an offer.

Long-Term Rental Estimate (80% LTV DSCR loan at 7.5%): • Median property price: $4,500,000 • Estimated gross monthly rent: $14,400 • Operating expenses (35% — vacancy, mgmt, maintenance, taxes, insurance): $5,040/month • Net operating income (NOI): $9,360/month • DSCR loan P&I (80% LTV, 7.5%, 30yr): $25,171/month • Estimated monthly cash flow: $-15,810 • Estimated cap rate (pre-financing): 2.5% • DSCR ratio (gross rent / full PITIA): 0.42x

Short-Term Rental Estimate: • Estimated gross STR monthly revenue: $12,200 • Typical STR expense ratio (platform fees, cleaning, supplies): 25-30% • Estimated STR net operating income: $8,784/month • DSCR ratio (STR gross): 0.35x

Note: STR income estimates are based on typical nightly rates and occupancy for the Palm Beach market. Actual performance varies by property location, amenities, management quality, and seasonality. Tayton Capital works with lenders that accept STR income documentation (AirDNA, Rabbu, or property manager projections) for DSCR qualification. We recommend getting a current AirDNA report for the specific property address before underwriting.

Important underwriting notes: • DSCR lenders use a licensed appraiser's market rent schedule — not your own estimate • Most lenders require DSCR ≥ 1.0; some offer 'no-ratio' DSCR at 25-30% down • Condo properties require HOA review and may face restrictions on STR use • Property taxes in Palm Beach County and insurance quotes significantly affect DSCR ratio • All estimates above are for illustration only — contact Tayton Capital for a property-specific analysis

STR Income Note: Short-term rental income estimates are based on typical nightly rates and occupancy for the Palm Beach market. Actual STR performance depends on the specific property, its proximity to attractions, listing quality, management, and seasonality. Tayton Capital works with lenders that accept AirDNA or property manager projections for DSCR qualification. Confirm local STR permit requirements before purchase.

Investment Loan Options in Palm Beach

DSCR Loan (Debt Service Coverage Ratio): Qualify based on the property's rental income, not your personal W-2 or tax returns. Available for SFR, condos, 2–4 unit, and 5+ unit properties in Palm Beach. Minimum 20% down ($900,000 on a $4,500,000 property). No income documentation required — lenders use an appraisal-based market rent or actual lease/STR data. Close in an LLC with proper vesting and title coordination. No limit on number of financed properties. Minimum DSCR ratio typically 1.0 (some lenders offer no-ratio DSCR at higher down payment).

Conventional Investment Loan: The standard Fannie Mae/Freddie Mac investor product requires personal income documentation (W-2, tax returns, or bank statements). Minimum 15% down for SFR, 25% for 2–4 unit (25% down = $1,125,000 in Palm Beach). Rates currently around 7.25-7.5% for 30-year fixed. Requires the property to qualify within Palm Beach County's conforming limit of $832,750. Cannot close in an LLC — title must be in your personal name.

Jumbo Investor / Portfolio Loan: For Palm Beach properties above the conforming limit of $832,750, portfolio lenders hold the loan in-house rather than selling to Fannie/Freddie. Rates and terms vary by lender. Down payments typically 25-30%. Some portfolio lenders underwrite on the DSCR framework; others require full personal income review. Tayton Capital works with multiple portfolio lenders for high-balance Palm Beach investments.

House-Hack (2–4 Unit, Owner-Occupied): If you plan to live in one unit of a Palm Beach 2-4 unit property, you can use FHA (3.5% down) or VA (0% down for eligible veterans) — dramatically reducing the capital required. You must occupy one unit for at least 12 months. After that, you can convert to a pure investment and use rental income from all units.

DSCR Refinance (Existing Investors): If you already own a Palm Beach investment property, a DSCR refi lets you pull equity (up to 75% cash-out LTV) without using personal income docs. Popular for investors who bought all-cash or at a higher rate and want to pull capital for additional acquisitions.

DSCR vs Conventional Investor — Side by Side

Feature	DSCR Loan	Conventional Investor
Income Docs Required	None	W-2 / Tax Returns
Minimum Down	20% ($900,000)	15–25% ($1,125,000 at 25%)
Est. P&I (30yr)	$25,171/mo	$23,023/mo
Close in LLC	Yes	No
Max # Properties	Unlimited	10 (Fannie Mae limit)
Qualifying Factor	Property rent	Personal DTI
Rate (approx)	7.5%	7.25%

2026 Loan Limits — Palm Beach County

Loan Type	2026 Limit
Conforming / High-Balance	$832,750
FHA (owner-occupied)	$667,000
VA (house-hack, owner-occupied)	No limit (full entitlement)
Jumbo Investor	Above $832,750

Loan limits verified against FHFA 2026 conforming limit announcement and HUD FHA county limit data. Investment property DSCR loans are subject to the conforming limit for agency pricing; jumbo DSCR products are available above this limit.

Palm Beach Investment Property FAQ

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