By David Ghazaryan, NMLS 1486726, iQRATE Mortgages NMLS 1862492
Updated October 28, 2026
Short answer: For a DSCR loan on a Miami condo, look for a lender that publishes Florida condo terms, including non-warrantable or condotel terms if the building needs them; requirements vary by lender. The building often decides eligibility: Fannie Mae project rules, Florida inspection and reserve laws, and city rental rules. iQRATE, licensed in Florida, shops 100+ lenders for each unit.
DSCR loans are business-purpose loans for non-owner-occupied investment property, not for a home you live in.
Key facts (Oct 2026)
- Federal (Fannie Mae), project eligibility: the Selling Guide's Ineligible Projects topic (B4-2.1-03, guide published October 07 2026) excludes condo hotels and projects that require rental pooling, projects where a single entity owns more than 20% of units (21 or more units), projects with more than 35% nonresidential or commercial space, projects whose HOA is named in pending litigation about safety, structural soundness or habitability, and projects in need of critical repairs (Fannie Mae Selling Guide, fetched Oct 26, 2026).
- Federal (Fannie Mae), 2026 condo changes: Lender Letter LL-2026-03 (March 18, 2026), issued in alignment with Freddie Mac, retired the 50% investment property concentration limit and the Limited Review process (required for loan applications dated on or after Aug. 3, 2026, which also ends the remaining Florida geographic restrictions), and raises the replacement reserve allocation from 10% to 15% of the annual budget for Full Review applications dated on or after Jan. 4, 2027 (Fannie Mae LL-2026-03 PDF, fetched Oct 26, 2026).
- Florida, milestone inspections: since SB 4-D (effective 5/26/2022, chapter 2022-269), condo and co-op buildings three habitable stories or more need a milestone inspection by December 31 of the year the building reaches 30 years of age, and every 10 years thereafter (Fla. Stat. 553.899, history through chapter 2025-175) (Florida Senate SB 4-D, fetched Oct 26, 2026; Fla. Stat. 553.899, fetched Oct 26, 2026).
- Miami-Dade County, 25-year coastal trigger: condo and co-op buildings three stories or taller located within three miles of the coastline and built on or after 1998 must have a recertification inspection when the building reaches 25 years, and every 10 years thereafter; all other buildings built on or after 1993 at 30 years (Miami-Dade County Building Recertification, fetched Oct 26, 2026).
- Florida, structural integrity reserve studies (SIRS): associations must have a SIRS completed by December 31, 2025 for each building three stories or higher, and in no event after December 31, 2026; for budgets adopted on or after December 31, 2024, owners may not vote to provide no reserves or less reserves than required; reserves may be funded by regular assessments, special assessments, lines of credit or loans, and a special assessment, line of credit or loan needs a majority vote of the total voting interests (Fla. Stat. 718.112, as amended by CS/CS/HB 913, chapter 2025-175, effective July 1, 2025) (Fla. Stat. 718.112, fetched Oct 26, 2026; Florida Senate HB 913 (2025), fetched Oct 26, 2026).
- City of Miami, condo-hotel and short-term rentals: the city treats a unit rented more than three times a year for periods of less than 30 days as transient, calls condo short-term rental use "Condo-Hotel", requires the COA/HOA to certify the evaluation form, and if more than 25% of a building's units are transient lodging the entire building must meet R-1 (hotel) standards; operators need a Certificate of Occupancy, a DBPR lodging license, a Certificate of Use renewed annually and a Business Tax Receipt (City of Miami, fetched Oct 26, 2026).
- City of Miami Beach, short-term rentals: rentals of less than six months and one day are prohibited in all single-family homes and in many multi-family buildings in certain zoning districts, and where they are permitted every advertisement must show the city Business Tax Receipt number and the Resort Tax certificate number (City of Miami Beach, fetched Oct 26, 2026).
- Federal business-purpose rule: Regulation Z exempts credit extended primarily for a business purpose (12 CFR 1026.3(a)), and the CFPB's official interpretation treats credit to acquire, improve or maintain a non-owner-occupied rental as business purpose, unless the owner expects to occupy it for more than 14 days during the coming year (CFPB, fetched Oct 26, 2026).
DSCR loan lender for Miami condo investors
A DSCR loan qualifies a Miami condo on its rent compared with the full payment (PITIA: principal, interest, taxes, insurance and HOA dues), not on your tax returns or W-2s. With a condo, the lender underwrites two things: you and the unit's rent, and the building itself. A strong borrower can still be declined because of the project, so ask for the HOA questionnaire, budget and inspection reports before you make an offer.
Most Miami condo DSCR files land in one of three buckets:
- Warrantable project: the building meets Fannie Mae project standards, so most DSCR lenders treat it like any other condo.
- Non-warrantable project: the building fails one or more agency tests (single-entity ownership, commercial space, litigation, critical repairs), so you need a lender that publishes non-warrantable condo terms, usually at a lower maximum loan-to-value (varies by lender).
- Condotel: the building runs like a hotel. Agency financing is out, and only some private lenders will lend, with tighter limits.
Our Miami mortgage broker and Miami Beach mortgage broker pages cover local loan limits and buyer programs.
Non-warrantable condo DSCR loans in Miami
Non-warrantable condo DSCR loans in Miami are common because many towers have commercial space, a developer or investor that still owns a block of units, open litigation, or repairs underway after a milestone inspection. Three points matter in 2026:
- Investor concentration is no longer an agency test. Fannie Mae retired its 50% investment property concentration limit in LL-2026-03, so an investor-heavy building is not non-warrantable for that reason alone under Fannie's rules. Private lenders still set their own project rules (varies by lender).
- Florida's special Limited Review limits are gone. Fannie Mae retired Limited Review for applications dated on or after Aug. 3, 2026, which also ends the remaining Florida geographic restrictions; projects now go through Full Review or a waiver.
- Critical repairs still disqualify. Fannie Mae lists failing a state, county or other mandatory structural inspection as a critical repair condition, which ties Florida milestone results directly to financing.
How DSCR lenders differ on Miami condos
Many DSCR lenders lend in Florida, but they do not treat every Miami condo the same way, and requirements vary by lender. Before you compare offers, expect these items to differ from one lender to the next:
- Minimum DSCR: some programs set a minimum ratio, some allow a ratio below 1.0, and some publish no minimum at all.
- Maximum loan-to-value: limits differ for purchases, rate-and-term refinances and cash-out refinances, and are often lower for non-warrantable condos and condotels.
- Minimum credit score: published credit minimums differ by lender, and some set a higher minimum for condotels or short-term rentals.
- Non-warrantable and condotel appetite: some lenders publish non-warrantable condo or condotel terms, some say only that condos are eligible, and some do not permit mandatory rental pooling.
- Project review: each lender sets its own limits on single-entity ownership, commercial space, investor concentration, litigation and reserves, which may be looser or tighter than Fannie Mae's.
- Short-term rental income and borrower type: whether nightly income counts, and whether the loan must close in a business entity, vary by lender.
Terms and requirements vary by lender and are subject to underwriting and approval; you will receive the lender's written terms and any required disclosures before you commit.
Florida condo safety laws and what they mean for a DSCR loan
- Milestone inspection: statewide at 30 years for buildings three habitable stories or more; in Miami-Dade, coastal buildings within three miles of the coastline built on or after 1998 are recertified at 25 years. Ask for the latest report and whether any repairs are open.
- SIRS and reserves: a SIRS was due by December 31, 2025 (and in no event after December 31, 2026), and for budgets adopted on or after December 31, 2024 owners can no longer vote to skip required reserves. Low reserves today often mean higher dues or a special assessment later, which raises PITIA and lowers your DSCR.
- Special assessments: a special assessment, line of credit or loan to fund reserves needs a majority vote of the total voting interests. Ask whether one is pending, because a lender counts higher dues in the payment.
Florida's condo regulator posts inspection resources on the DBPR condominium inspections page.
Short-term rentals and condo-hotels in Miami and Miami Beach
Many investors want nightly income from a Miami condo. Check three things before you count it: the city rule, the HOA documents and the lender's short-term rental policy. In the City of Miami, condo short-term rental use is Condo-Hotel lodging with HOA certification and a 25% building threshold for hotel code standards. In Miami Beach, rentals of less than six months and one day are prohibited in many multi-family buildings in certain zoning districts. If the city or the HOA does not allow it, plan the loan on long-term rent.
For a Central Florida comparison, see our Orlando short-term rental DSCR loan guide.
What lenders ask for on a Miami condo DSCR file
- HOA questionnaire and budget: reserves, delinquencies, commercial space, single-entity ownership and litigation.
- Inspection reports: the milestone or recertification report and the SIRS, plus any special assessment notices.
- Rent evidence: a lease, an appraiser's market rent schedule, or both; for short-term rental income, the city permits and the lender's own short-term rental rules (varies by lender).
- Entity documents if you close in an LLC, plus a personal guarantee on most programs (varies by lender).
How iQRATE handles Miami condo DSCR files
- Building first: we review the project documents to sort the unit into warrantable, non-warrantable or condotel, then match lenders that publish terms for that bucket and lend in Florida.
- Licensed in Florida, 100+ lenders: iQRATE Mortgages is licensed in Florida and shops complex deals across 100+ lenders, but only after a full application and a complete document package, so lenders price a real file.
More on rental financing: DSCR loans, investor loans, portfolio loans and non-QM loans. Florida investors can also see Florida mortgage broker and Fort Lauderdale.
Looking at a Miami or Miami Beach condo? Call iQRATE Mortgages at (702) 766-3744 or start an application, and we will review the building and match it with lenders that fit.
Frequently asked questions
Who is a DSCR loan lender for Miami condo investors?
Private DSCR lenders that publish condo terms and lend in Florida. Some publish non-warrantable condo or condotel terms, while others only say condos are eligible, and minimum DSCR, maximum loan-to-value and credit score all differ. iQRATE Mortgages is licensed in Florida and shops 100+ lenders to match each Miami condo. Terms vary by lender.
What makes a Miami condo non-warrantable?
A project fails Fannie Mae or Freddie Mac eligibility. Fannie Mae's Ineligible Projects list includes condo hotels and mandatory rental pooling, one entity owning more than 20% of units in projects of 21 or more units, more than 35% commercial space, pending HOA litigation about safety or structural soundness, and projects needing critical repairs. Non-warrantable units can still qualify for a DSCR loan.
Does a high share of investor-owned units still make a Miami condo non-warrantable?
Not under Fannie Mae's current rules. Lender Letter LL-2026-03 of March 18, 2026 retired the 50% investment property concentration limit for established projects under Full Review. Private DSCR lenders set their own project rules, and some publish no investor concentration limit at all, so ask each lender about its own condo review (varies by lender).
Can I get a DSCR loan on a Miami condotel?
Sometimes, from a private lender. Fannie Mae does not buy loans in condo hotels or projects with mandatory rental pooling. Some private lenders publish condotel terms, which can come with tighter limits on credit score, loan-to-value and loan amount than a standard condo, while others do not permit mandatory rental pooling. Terms vary by lender.
How do Florida milestone inspections affect a Miami condo DSCR loan?
They can decide whether the building qualifies. Florida requires a milestone inspection for condo buildings three habitable stories or more by December 31 of the year they reach 30 years, and Miami-Dade requires recertification at 25 years for coastal buildings within three miles of the coastline built on or after 1998. Fannie Mae treats a failed mandatory inspection as a critical repair issue.
What is a SIRS and why do Miami condo lenders ask about it?
A structural integrity reserve study. Florida associations with buildings three stories or higher had to complete one by December 31, 2025, and in no event after December 31, 2026, and for budgets adopted on or after December 31, 2024 owners cannot vote to skip required reserves. Underfunded reserves can lead to special assessments, so lenders review the budget, reserves and any assessments.
Can I use a Miami or Miami Beach condo as a short-term rental with a DSCR loan?
Only where the city and the HOA allow it. The City of Miami treats condo short-term rental use as Condo-Hotel lodging that needs HOA certification, a DBPR lodging license and a Certificate of Use. Miami Beach prohibits rentals of less than six months and one day in many multi-family buildings in certain zoning districts. Confirm the address before counting nightly income.
Are Miami condo DSCR loans covered by consumer mortgage rules?
Generally not. Regulation Z exempts credit extended primarily for a business purpose, and the CFPB's official interpretation treats credit to buy, improve or maintain a non-owner-occupied rental as business purpose. If you expect to live in the condo more than 14 days in the coming year, it is not treated as non-owner-occupied.
Business-purpose loans for non-owner-occupied investment property only; not for owner-occupied homes. Credit extended primarily for a business purpose is exempt from Regulation Z under 12 CFR 1026.3(a). Information is educational, current as of October 28, 2026, and subject to change; it is not a commitment to lend. Terms and requirements vary by lender and borrower qualification and are subject to underwriting and approval. No interest rate, APR or payment is quoted in this post. Condo law and short-term rental rules are summarized from public agency pages; consult a CPA or attorney about tax, entity and legal questions. iQRATE Mortgages, NMLS 1862492. David Ghazaryan, NMLS 1486726. NMLS Consumer Access. Equal Housing Opportunity. We do business in accordance with the federal Fair Housing Act and the Equal Credit Opportunity Act.
