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Real estate in Miami has long attracted international buyers, and recent trends show an increasing number of foreign investors leveraging Debt-Service Coverage Ratio (DSCR) loans to break into the U.S. property market. In this step-by-step case study, we explore how a Dubai-based investor successfully acquired a Miami condo using DSCR financing — a method that doesn’t require traditional income verification.
What Is DSCR Financing?
DSCR (Debt-Service Coverage Ratio) financing is a type of real estate investment loan used primarily for income-producing properties. Instead of basing eligibility on personal income, lenders assess the property’s ability to cover its debt obligations using rental income.
For foreign investors, DSCR loans are a game changer. They offer:
- No personal income or U.S. tax returns required
- Loan approvals based on property cash flow
- Fast closings
- Flexible loan structures
Learn more about DSCR Loans and How They Work
Step-by-Step Case Study: How the Deal Was Done
Step 1: Investor Profile & Objective
The client: A Dubai-based entrepreneur with several international investments
Objective: Acquire a Miami condo as a vacation rental and long-term income property
Challenge: No U.S. income documentation, and limited U.S. credit history
Step 2: Property Selection
The investor chose a high-demand waterfront condo in Brickell, Miami, valued at $1.25 million. The unit was already listed on Airbnb and generated strong historical rental income — a key factor for DSCR underwriting.
Step 3: Pre-Approval with a DSCR Lender
We connected the investor with a DSCR lender specializing in foreign national loans. The lender required:
- A 25% down payment
- Evidence of rental income potential (Airbnb records + rental comps)
- Passport and proof of funds (bank statement from Dubai)
Tip: Get pre-approved for a DSCR loan today
Step 4: Appraisal & DSCR Calculation
Appraisal confirmed market value and supported strong rent estimates. The DSCR ratio came out to 1.35, exceeding the minimum lender requirement of 1.0, meaning the property’s income could cover all mortgage-related expenses.
Step 5: Underwriting & Closing
- No W-2s or tax returns were needed
- Closing took just 28 days
- The investor used a U.S. LLC structure for asset protection and ease of property management
Why International Buyers Are Choosing DSCR Loans
Benefits Realized
- Rental Income: Immediate cash flow from short-term rentals
- Asset Diversification: A prime Miami asset in a dollar-denominated market
- Minimal Documentation: No U.S. employment or income verification required
Frequently Asked Questions (FAQ)
Can non-U.S. citizens qualify for DSCR loans?
Yes! Many DSCR lenders offer financing to foreign nationals, provided the property cash flows and minimum documentation is met.
What is the minimum DSCR ratio required?
Most lenders look for a DSCR of at least 1.0, meaning the property generates enough income to cover the mortgage.
Are DSCR loans available for Airbnb or short-term rentals?
Absolutely. As long as the property’s income can be documented, many lenders accept short-term rental income for DSCR qualification.
Read Next: Related Articles You Might Like
- How to Use Real Estate Investments to Diversify your Financial Portfolio
- How to Use a HELOC on a High-Value Home to Invest in Real Estate
Want help structuring your own DSCR-financed real estate deal? Reach out to our expert team today — we’re here to help you succeed.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
