Which loan actually fits your deal? From a realtor who owns 10 and has used all three.
10
Rentals Owned
3
Loan Types Used
~100
Managed via FunStay
I’ve used DSCR loans, conventional mortgages, and second home loans across my Orlando vacation rental portfolio. Choosing wrong costs you thousands per year. Here’s the Orlando vacation rental financing breakdown I wish I had before my first deal.
Side-by-Side Comparison
DSCR loan Orlando vs conventional vs second home: every number current as of August 2026. This is the Airbnb financing Florida comparison investors actually need.
| DSCR Loan | Conventional | Second Home | |
|---|---|---|---|
| Best For | Full-time STR investors | W-2 earners, 1st-3rd rental | Personal use + some rental |
| 2026 Rates | 6.00 – 7.50% | 7.25 – 7.75% | 6.75 – 7.15% |
| Down Payment | 20 – 25% | 15 – 25% | 10 – 20% |
| Income Docs | Property income only | Full W-2, tax returns | Full docs required |
| STR Income to Qualify | Yes (AirDNA accepted) | Limited (2yr tax history) | No |
| Property Count Cap | No limit | 10 max | Usually 1 |
| Close in LLC | Yes | No | No |
| Reserves | 3-12 months | 2-6 months | 2-6 months |
| Min Credit Score | 660+ | 680+ | 680+ |
| Rental Limits | None | None | Can’t be full-time rental |
| Closing Speed | 20-30 days | 30-45 days | 30-45 days |
The Verdict on Each
DSCR Loan Orlando
Best for portfolio investors
- Qualifies on property cash flow, not your W-2 or tax returns
- No cap on financed properties (conventional cuts you off at 10)
- Close in an LLC for liability protection as your portfolio grows
- Lenders accept AirDNA projections for STR income verification
- DSCR loan Orlando rates now competitive: 6.00% for strong profiles (720+ credit, 25% down, 1.25+ DSCR)
I’ve used DSCR loan Orlando products on most of my Orlando vacation rental communities purchases. For Airbnb financing Florida investors scaling past 4 properties, this vacation rental loan option is the move.
Conventional Investment Loan
Best for first-time investors
- Product every lender offers, widely available
- Vacation home down payment as low as 15%
- Straightforward vacation rental loan option for clean W-2 income
Catches: 10-property Fannie Mae cap. STR income heavily discounted. Your STR tax strategy with depreciation makes Schedule E understate real income.
Good fit for W-2 earners buying their first rental in Windsor Hills, which outperforms most communities on occupancy. Investment property rates run 0.50-1.00% above primary residence, so budget accordingly.
Second Home Loan
Caution: know the rules
- Lowest vacation home down payment of all three (10-20%)
- Rates close to primary residence pricing
- Easier qualification than investment property loans
The trap: property must be available for personal use more than half the year. Can’t be in a rental pool. Can’t use rental income to qualify. Lenders can reclassify or call the loan if occupancy looks like a full-time investment.
This vacation rental loan option works only if you genuinely use it yourself. If you want full-time Airbnb financing Florida returns, go DSCR. The vacation home down payment savings aren’t worth the compliance risk.
Real Money: $610K Windsor Hills Home
Same property, three different Orlando vacation rental financing options. The vacation home down payment alone changes everything.
DSCR (25% DOWN)
$3,044
/month total
Down
$152,500
Loan
$457,500
Rate
7.00%
PMI
None
CONVENTIONAL (20% DOWN)
$3,413
/month total
Down
$122,000
Loan
$488,000
Rate
7.50%
PMI
None
SECOND HOME (15% DOWN)
$3,650
/month total
Down
$91,500
Loan
$518,500
Rate
7.00%
PMI
~$200/mo
The DSCR loan Orlando option has the lowest payment despite the higher down. Conventional costs $370/mo more. Second home needs less cash but highest total cost. Your Orlando vacation rental financing choice changes which communities pencil out.
What Most Orlando Vacation Rental Financing Guides Skip
DSCR Prepayment Penalties
Most DSCR loan Orlando products lock you in for 3-5 years with a declining penalty: 5% of the loan balance in year one, 4% in year two, down to 1% in year five. On a $457,500 loan, that’s $22,875 if you refinance in year one. Conventional and second home loans don’t carry prepayment penalties. If you plan to refinance within 3 years, negotiate a shorter penalty or accept a slightly higher rate for a no-penalty option.
Florida Insurance Can Kill Your DSCR Ratio
Inland Orlando vacation rental insurance runs $2,000-$4,000 per year. That’s $170-$330 per month added to your PITIA. An extra $200/month in insurance can drop your DSCR below 1.0 and disqualify the deal entirely. Get insurance quotes before you apply for Airbnb financing in Florida, not after you’re under contract.
STR Permit Required Before You Apply
DSCR lenders need an active vacation rental registration to accept AirDNA income projections. The Kissimmee-Osceola corridor near Disney is STR-friendly, but in unincorporated Orange County, most residential zones prohibit short-term rentals without special approval. Always confirm your property’s jurisdiction and permit eligibility before applying for any Orlando vacation rental financing product.
Ask Your Lender These 6 Questions
Before you commit to any Orlando vacation rental financing product:
- Do you accept AirDNA projections for STR income, or require lease agreements?
- What DSCR ratio does your DSCR loan Orlando program require? Rate tiers at 1.0 vs 1.25 vs 1.50?
- Can I close in an LLC without a personal guarantee?
- What reserves do you need after closing?
- Is there a rate premium for short-term rental vs long-term rental DSCR?
- How do you calculate STR rental income from Schedule E? (conventional only)
I work with DSCR loan Orlando and conventional lenders weekly. Whether you need Airbnb financing Florida guidance or help choosing between vacation rental loan options, I’ll connect you with lenders I’ve used on my own deals.
Ready to Finance Your Next Orlando Rental?
The best DSCR loan Orlando rate or conventional deal depends on your credit, cash, portfolio size, and how you plan to use the property. If you’re preparing your rental for sale or buying your next one, let’s talk.
Mike Chen | La Rosa Realty Celebration | 503-888-8070
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