DSCR Loans for Condominium Investment Properties

Before analyzing any condo DSCR acquisition, the first step is getting the actual HOA amount — not the listing estimate, not the building’s published base fee. The actual HOA dues including special assessments, reserve contributions, and fee increases.

Condo Investment? We’ll Calculate Your DSCR Including HOA.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Condo DSCR Program Parameters

Same as SFR for credit score and LTV tiers:
– 640 minimum credit. 80% LTV at 660+, DSCR ≥ 1.00.
– No-ratio at 70% LTV requires 700+.
– No income documentation.
– Max loan $4,000,000.

Additional requirement: Condo project review. The condominium building/association must pass a project eligibility review covering: financial health, reserve adequacy, owner-occupancy percentage, pending litigation, and property condition. Timeline: add 5–7 business days to standard close.

The HOA Effect on Condo DSCR

The same property financed as a condo vs SFR produces dramatically different DSCR:

Scenario A — SFR equivalent: $550,000 purchase. Market rent $3,200/month. Loan at 80% LTV. PITIA (no HOA): $3,280/month. DSCR: 0.98.

Scenario B — Same property as condo: Same $550,000. Same $3,200 rent. HOA: $650/month. PITIA: $3,930/month. DSCR: $3,200 ÷ $3,930 = 0.81.

The $650 HOA moved the deal from borderline no-ratio (0.98) to deep no-ratio (0.81). This is why “is the DSCR viable on this condo?” requires the exact HOA figure, not an estimate.

Condo-specific PITIA calculation:
PITIA = P&I + Property Taxes + Homeowners Insurance + HOA monthly dues

Note: HO-6 (interior condo insurance) is separately required for the unit owner. Master insurance (building exterior) is part of HOA dues. The HO-6 premium for an individual condo unit is typically $100–$300/month and goes in the PITIA.

Florida Condo Investment — Post-Surfside Complexity

Florida’s 2022 Structural Integrity Reserve Study legislation created new compliance requirements for condominium buildings, particularly those 3+ stories built before 1992. Buildings must conduct milestone inspections and fund structural integrity reserves to meet new standards by 2026.

This affects DSCR investors in two ways:

1. Project eligibility. Buildings currently working through reserve funding requirements may be temporarily ineligible for lending programs that require adequate reserve funding. The project review will identify this — confirm project eligibility before going under contract on any Florida condo.

2. Special assessments. Buildings funding required structural repairs are often passing special assessments to unit owners — sometimes $10,000–$50,000+. Even if a special assessment doesn’t affect DSCR directly (it’s a capital call, not a recurring PITIA component), it affects the investment’s total cost and cash position.

Pre-contract due diligence for Florida condo investments: request the most recent HOA financials, meeting minutes (last 12 months), and written disclosure of any pending or approved special assessments.

Condo DSCR Markets Where It Works

Condos work in DSCR markets where rents are high relative to prices:

Fort Lauderdale North Broward: Pompano Beach condos at $280,000–$400,000 with rents of $1,900–$2,400/month and HOA of $250–$400/month can produce 1.00–1.15 DSCR at 80% LTV.

Charlotte Urban Core: Uptown Charlotte condos at $250,000–$450,000 with banking professional renter demand and HOA of $200–$450/month can produce 1.00–1.10 DSCR.

Tampa Westshore / Channelside: Condos at $280,000–$500,000 with HOA of $300–$600/month and rents of $1,900–$2,500/month can approach 1.00 DSCR at 80% LTV.

Frequently Asked Questions

Does condo HOA go into the DSCR calculation? Yes — HOA monthly dues are included in PITIA, which is the denominator of the DSCR calculation.

What is condo project review? A review of the condominium association’s financial health, reserve funding, owner-occupancy ratio, pending litigation, and property condition. Required for all condo DSCR loans. Add 5–7 business days.

Can I get a DSCR loan on a condotel? Hotel-condo structures are treated differently from standard residential condos. Max LTV is typically lower (65–70%). Confirm specific program parameters with your loan officer.

How does Florida’s Surfside legislation affect condo DSCR? Some older Florida buildings may be temporarily ineligible pending reserve funding compliance. Always confirm project eligibility before contract.

About the Author: Mayer Dallal — Managing Director, Mbanc NMLS #38232. [mbanc.com/blog/author/mayer-dallal/]
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Why Condo DSCR Requires More Upfront Work

The single biggest mistake condo DSCR investors make: going under contract, paying for an inspection, then discovering the HOA doesn’t permit short-term rental (if that was the plan) or the condo project fails project review. Both are deal-killers that happen after money is spent.

The condo DSCR pre-application checklist:

$items = (
The single most important thing to understand about condo DSCR: the HOA fee is in PITIA. On a $600,000 Miami Brickell condo with a $750/month HOA, the $750 adds directly to the PITIA denominator in the DSCR calculation. That $750/month is the difference between a 0.92 DSCR and a 1.05 DSCR on the same property.

Before analyzing any condo DSCR acquisition, the first step is getting the actual HOA amount — not the listing estimate, not the building’s published base fee. The actual HOA dues including special assessments, reserve contributions, and fee increases.

Condo Investment? We’ll Calculate Your DSCR Including HOA.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Condo DSCR Program Parameters

Same as SFR for credit score and LTV tiers:
– 640 minimum credit. 80% LTV at 660+, DSCR ≥ 1.00.
– No-ratio at 70% LTV requires 700+.
– No income documentation.
– Max loan $4,000,000.

Additional requirement: Condo project review. The condominium building/association must pass a project eligibility review covering: financial health, reserve adequacy, owner-occupancy percentage, pending litigation, and property condition. Timeline: add 5–7 business days to standard close.

The HOA Effect on Condo DSCR

The same property financed as a condo vs SFR produces dramatically different DSCR:

Scenario A — SFR equivalent: $550,000 purchase. Market rent $3,200/month. Loan at 80% LTV. PITIA (no HOA): $3,280/month. DSCR: 0.98.

Scenario B — Same property as condo: Same $550,000. Same $3,200 rent. HOA: $650/month. PITIA: $3,930/month. DSCR: $3,200 ÷ $3,930 = 0.81.

The $650 HOA moved the deal from borderline no-ratio (0.98) to deep no-ratio (0.81). This is why “is the DSCR viable on this condo?” requires the exact HOA figure, not an estimate.

Condo-specific PITIA calculation:
PITIA = P&I + Property Taxes + Homeowners Insurance + HOA monthly dues

Note: HO-6 (interior condo insurance) is separately required for the unit owner. Master insurance (building exterior) is part of HOA dues. The HO-6 premium for an individual condo unit is typically $100–$300/month and goes in the PITIA.

Florida Condo Investment — Post-Surfside Complexity

Florida’s 2022 Structural Integrity Reserve Study legislation created new compliance requirements for condominium buildings, particularly those 3+ stories built before 1992. Buildings must conduct milestone inspections and fund structural integrity reserves to meet new standards by 2026.

This affects DSCR investors in two ways:

1. Project eligibility. Buildings currently working through reserve funding requirements may be temporarily ineligible for lending programs that require adequate reserve funding. The project review will identify this — confirm project eligibility before going under contract on any Florida condo.

2. Special assessments. Buildings funding required structural repairs are often passing special assessments to unit owners — sometimes $10,000–$50,000+. Even if a special assessment doesn’t affect DSCR directly (it’s a capital call, not a recurring PITIA component), it affects the investment’s total cost and cash position.

Pre-contract due diligence for Florida condo investments: request the most recent HOA financials, meeting minutes (last 12 months), and written disclosure of any pending or approved special assessments.

Condo DSCR Markets Where It Works

Condos work in DSCR markets where rents are high relative to prices:

Fort Lauderdale North Broward: Pompano Beach condos at $280,000–$400,000 with rents of $1,900–$2,400/month and HOA of $250–$400/month can produce 1.00–1.15 DSCR at 80% LTV.

Charlotte Urban Core: Uptown Charlotte condos at $250,000–$450,000 with banking professional renter demand and HOA of $200–$450/month can produce 1.00–1.10 DSCR.

Tampa Westshore / Channelside: Condos at $280,000–$500,000 with HOA of $300–$600/month and rents of $1,900–$2,500/month can approach 1.00 DSCR at 80% LTV.

Frequently Asked Questions

Does condo HOA go into the DSCR calculation? Yes — HOA monthly dues are included in PITIA, which is the denominator of the DSCR calculation.

What is condo project review? A review of the condominium association’s financial health, reserve funding, owner-occupancy ratio, pending litigation, and property condition. Required for all condo DSCR loans. Add 5–7 business days.

Can I get a DSCR loan on a condotel? Hotel-condo structures are treated differently from standard residential condos. Max LTV is typically lower (65–70%). Confirm specific program parameters with your loan officer.

How does Florida’s Surfside legislation affect condo DSCR? Some older Florida buildings may be temporarily ineligible pending reserve funding compliance. Always confirm project eligibility before contract.

About the Author: Mayer Dallal — Managing Director, Mbanc NMLS #38232. [mbanc.com/blog/author/mayer-dallal/]
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Why Condo DSCR Requires More Upfront Work

The single biggest mistake condo DSCR investors make: going under contract, paying for an inspection, then discovering the HOA doesn’t permit short-term rental (if that was the plan) or the condo project fails project review. Both are deal-killers that happen after money is spent.

The condo DSCR pre-application checklist:
1. Get written HOA confirmation of rental permissibility (including STR if applicable)
2. Request HOA financial statements (last 12 months), meeting minutes, and reserve study
3. Confirm no active special assessment or pending litigation
4. Get actual HOA monthly dues (not listing estimate)
5. Confirm project eligibility concept with your loan officer before contract

This pre-contract work takes 3–5 business days and costs nothing. It identifies condo deals that will clear project review vs those that won’t — before the appraisal fee is paid.

Condo DSCR Markets With the Best Investment Profile

The best condo DSCR deals are in markets where HOA dues are reasonable (under $400/month), purchase prices are accessible, and rents are strong relative to unit size:

Charlotte Uptown/South End: 2BR condos at $275,000–$440,000. HOA $200–$400/month. Professional banker renter demand. DSCR 0.95–1.10 at 75–80% LTV.

Fort Lauderdale (Pompano Beach north Broward): 2BR condos at $250,000–$400,000. HOA $300–$600/month. Rents $1,800–$2,500/month. DSCR 0.85–1.05. Requires Florida insurance diligence.

Tampa Westshore/Hyde Park: 2BR condos at $280,000–$500,000. HOA $300–$550/month. Professional tenant base. DSCR 0.88–1.05.

Jacksonville Southside: Condos at $200,000–$340,000. HOA $150–$350/month (lowest in our condo market set). DSCR 1.00–1.20. Best condo DSCR in Florida.

Florida Condo Specific — Post-Surfside Changes

Florida’s SB 4D (2022 Structural Integrity Reform Act) requires:
– Milestone inspections for buildings 3+ stories, 30+ years old by 2024/2026
– Structural Integrity Reserve Studies (SIRS) by Dec 31, 2024
– Reserve funding requirements based on SIRS findings beginning 2026

Buildings that are in compliance: normal project review. Buildings that have failed inspection or are under special assessment for required repairs: may be temporarily ineligible for lending programs. Any 1990s or older Florida condo building requires specific eligibility confirmation before contract.

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DSCR Loan for Condos: The HOA Factor

Condominiums represent the most HOA-sensitive DSCR property type. The monthly HOA fee adds directly to PITIA — reducing DSCR ratio significantly compared to the same purchase price in an SFR with no HOA.

The HOA PITIA impact:
$400,000 condo with $600/month HOA vs $400,000 SFR with no HOA:

At 80% LTV ($320,000 loan at 8.00%):
P&I: $2,349. Taxes (1.2%): $400. Insurance: $80.

SFR PITIA: $2,829. Condo PITIA (add $600 HOA): $3,429. Difference: $600/month.

If market rent is $2,800/month:
SFR DSCR: 0.99 (borderline no-ratio).
Condo DSCR: 0.82. Below standard no-ratio floor.

Same property. Same price. Same rent. $600 HOA is the difference between viable and nonviable.

When condo DSCR works:
Low or no HOA condos (<$200/month): DSCR impact is manageable. High-rent urban condos: If the rent is $3,500+/month on a $400K condo with $600 HOA, DSCR improves: $3,500 ÷ $3,429 = 1.02. Standard. Nashville condos ($350K–$550K, rents $2,200–$3,200, HOA $150–$350): Viable in many scenarios. Charlotte/Raleigh condos: Moderate HOA, strong rent demand, manageable DSCR. Condo project approval:
In addition to DSCR qualification, DSCR condo loans require project-level review. The lender reviews: HOA financial health, reserve fund adequacy, owner-occupancy ratio (typically 50%+ required), no pending litigation, no significant deferred maintenance. Florida post-Surfside: 3-story+ condo buildings 30+ years old require structural integrity reserve studies.

Best DSCR condo markets:
Nashville (downtown/Midtown): $300K–$500K, low HOA, strong rent demand.
Charlotte (uptown/South End): $280K–$450K, moderate HOA.
Dallas (Uptown): $350K–$550K, competitive rents.
Atlanta (Midtown/Buckhead): $280K–$480K, varies widely by building.

Worst DSCR condo markets:
Miami (Brickell/South Beach): HOA $600–$2,500 + high taxes + insurance = DSCR 0.50–0.75.
Chicago (downtown): HOA $500–$2,000 + Cook County taxes = DSCR 0.55–0.80.
NYC metro: Price-to-rent compression + HOA = rarely viable.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity LenderThe single most important thing to understand about condo DSCR: the HOA fee is in PITIA. On a $600,000 Miami Brickell condo with a $750/month HOA, the $750 adds directly to the PITIA denominator in the DSCR calculation. That $750/month is the difference between a 0.92 DSCR and a 1.05 DSCR on the same property.

Before analyzing any condo DSCR acquisition, the first step is getting the actual HOA amount — not the listing estimate, not the building’s published base fee. The actual HOA dues including special assessments, reserve contributions, and fee increases.

Condo Investment? We’ll Calculate Your DSCR Including HOA.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Condo DSCR Program Parameters

Same as SFR for credit score and LTV tiers:
– 640 minimum credit. 80% LTV at 660+, DSCR ≥ 1.00.
– No-ratio at 70% LTV requires 700+.
– No income documentation.
– Max loan $4,000,000.

Additional requirement: Condo project review. The condominium building/association must pass a project eligibility review covering: financial health, reserve adequacy, owner-occupancy percentage, pending litigation, and property condition. Timeline: add 5–7 business days to standard close.

The HOA Effect on Condo DSCR

The same property financed as a condo vs SFR produces dramatically different DSCR:

Scenario A — SFR equivalent: $550,000 purchase. Market rent $3,200/month. Loan at 80% LTV. PITIA (no HOA): $3,280/month. DSCR: 0.98.

Scenario B — Same property as condo: Same $550,000. Same $3,200 rent. HOA: $650/month. PITIA: $3,930/month. DSCR: $3,200 ÷ $3,930 = 0.81.

The $650 HOA moved the deal from borderline no-ratio (0.98) to deep no-ratio (0.81). This is why “is the DSCR viable on this condo?” requires the exact HOA figure, not an estimate.

Condo-specific PITIA calculation:
PITIA = P&I + Property Taxes + Homeowners Insurance + HOA monthly dues

Note: HO-6 (interior condo insurance) is separately required for the unit owner. Master insurance (building exterior) is part of HOA dues. The HO-6 premium for an individual condo unit is typically $100–$300/month and goes in the PITIA.

Florida Condo Investment — Post-Surfside Complexity

Florida’s 2022 Structural Integrity Reserve Study legislation created new compliance requirements for condominium buildings, particularly those 3+ stories built before 1992. Buildings must conduct milestone inspections and fund structural integrity reserves to meet new standards by 2026.

This affects DSCR investors in two ways:

1. Project eligibility. Buildings currently working through reserve funding requirements may be temporarily ineligible for lending programs that require adequate reserve funding. The project review will identify this — confirm project eligibility before going under contract on any Florida condo.

2. Special assessments. Buildings funding required structural repairs are often passing special assessments to unit owners — sometimes $10,000–$50,000+. Even if a special assessment doesn’t affect DSCR directly (it’s a capital call, not a recurring PITIA component), it affects the investment’s total cost and cash position.

Pre-contract due diligence for Florida condo investments: request the most recent HOA financials, meeting minutes (last 12 months), and written disclosure of any pending or approved special assessments.

Condo DSCR Markets Where It Works

Condos work in DSCR markets where rents are high relative to prices:

Fort Lauderdale North Broward: Pompano Beach condos at $280,000–$400,000 with rents of $1,900–$2,400/month and HOA of $250–$400/month can produce 1.00–1.15 DSCR at 80% LTV.

Charlotte Urban Core: Uptown Charlotte condos at $250,000–$450,000 with banking professional renter demand and HOA of $200–$450/month can produce 1.00–1.10 DSCR.

Tampa Westshore / Channelside: Condos at $280,000–$500,000 with HOA of $300–$600/month and rents of $1,900–$2,500/month can approach 1.00 DSCR at 80% LTV.

Frequently Asked Questions

Does condo HOA go into the DSCR calculation? Yes — HOA monthly dues are included in PITIA, which is the denominator of the DSCR calculation.

What is condo project review? A review of the condominium association’s financial health, reserve funding, owner-occupancy ratio, pending litigation, and property condition. Required for all condo DSCR loans. Add 5–7 business days.

Can I get a DSCR loan on a condotel? Hotel-condo structures are treated differently from standard residential condos. Max LTV is typically lower (65–70%). Confirm specific program parameters with your loan officer.

How does Florida’s Surfside legislation affect condo DSCR? Some older Florida buildings may be temporarily ineligible pending reserve funding compliance. Always confirm project eligibility before contract.

About the Author: Mayer Dallal — Managing Director, Mbanc NMLS #38232. [mbanc.com/blog/author/mayer-dallal/]
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Why Condo DSCR Requires More Upfront Work

The single biggest mistake condo DSCR investors make: going under contract, paying for an inspection, then discovering the HOA doesn’t permit short-term rental (if that was the plan) or the condo project fails project review. Both are deal-killers that happen after money is spent.

The condo DSCR pre-application checklist:
1. Get written HOA confirmation of rental permissibility (including STR if applicable)
2. Request HOA financial statements (last 12 months), meeting minutes, and reserve study
3. Confirm no active special assessment or pending litigation
4. Get actual HOA monthly dues (not listing estimate)
5. Confirm project eligibility concept with your loan officer before contract

This pre-contract work takes 3–5 business days and costs nothing. It identifies condo deals that will clear project review vs those that won’t — before the appraisal fee is paid.

Condo DSCR Markets With the Best Investment Profile

The best condo DSCR deals are in markets where HOA dues are reasonable (under $400/month), purchase prices are accessible, and rents are strong relative to unit size:

Charlotte Uptown/South End: 2BR condos at $275,000–$440,000. HOA $200–$400/month. Professional banker renter demand. DSCR 0.95–1.10 at 75–80% LTV.

Fort Lauderdale (Pompano Beach north Broward): 2BR condos at $250,000–$400,000. HOA $300–$600/month. Rents $1,800–$2,500/month. DSCR 0.85–1.05. Requires Florida insurance diligence.

Tampa Westshore/Hyde Park: 2BR condos at $280,000–$500,000. HOA $300–$550/month. Professional tenant base. DSCR 0.88–1.05.

Jacksonville Southside: Condos at $200,000–$340,000. HOA $150–$350/month (lowest in our condo market set). DSCR 1.00–1.20. Best condo DSCR in Florida.

Florida Condo Specific — Post-Surfside Changes

Florida’s SB 4D (2022 Structural Integrity Reform Act) requires:
– Milestone inspections for buildings 3+ stories, 30+ years old by 2024/2026
– Structural Integrity Reserve Studies (SIRS) by Dec 31, 2024
– Reserve funding requirements based on SIRS findings beginning 2026

Buildings that are in compliance: normal project review. Buildings that have failed inspection or are under special assessment for required repairs: may be temporarily ineligible for lending programs. Any 1990s or older Florida condo building requires specific eligibility confirmation before contract.

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DSCR Loan for Condos: The HOA Factor

Condominiums represent the most HOA-sensitive DSCR property type. The monthly HOA fee adds directly to PITIA — reducing DSCR ratio significantly compared to the same purchase price in an SFR with no HOA.

The HOA PITIA impact:
$400,000 condo with $600/month HOA vs $400,000 SFR with no HOA:

At 80% LTV ($320,000 loan at 8.00%):
P&I: $2,349. Taxes (1.2%): $400. Insurance: $80.

SFR PITIA: $2,829. Condo PITIA (add $600 HOA): $3,429. Difference: $600/month.

If market rent is $2,800/month:
SFR DSCR: 0.99 (borderline no-ratio).
Condo DSCR: 0.82. Below standard no-ratio floor.

Same property. Same price. Same rent. $600 HOA is the difference between viable and nonviable.

When condo DSCR works:
Low or no HOA condos (<$200/month): DSCR impact is manageable. High-rent urban condos: If the rent is $3,500+/month on a $400K condo with $600 HOA, DSCR improves: $3,500 ÷ $3,429 = 1.02. Standard. Nashville condos ($350K–$550K, rents $2,200–$3,200, HOA $150–$350): Viable in many scenarios. Charlotte/Raleigh condos: Moderate HOA, strong rent demand, manageable DSCR. Condo project approval:
In addition to DSCR qualification, DSCR condo loans require project-level review. The lender reviews: HOA financial health, reserve fund adequacy, owner-occupancy ratio (typically 50%+ required), no pending litigation, no significant deferred maintenance. Florida post-Surfside: 3-story+ condo buildings 30+ years old require structural integrity reserve studies.

Best DSCR condo markets:
Nashville (downtown/Midtown): $300K–$500K, low HOA, strong rent demand.
Charlotte (uptown/South End): $280K–$450K, moderate HOA.
Dallas (Uptown): $350K–$550K, competitive rents.
Atlanta (Midtown/Buckhead): $280K–$480K, varies widely by building.

Worst DSCR condo markets:
Miami (Brickell/South Beach): HOA $600–$2,500 + high taxes + insurance = DSCR 0.50–0.75.
Chicago (downtown): HOA $500–$2,000 + Cook County taxes = DSCR 0.55–0.80.
NYC metro: Price-to-rent compression + HOA = rarely viable.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity LenderThe single most important thing to understand about condo DSCR: the HOA fee is in PITIA. On a $600,000 Miami Brickell condo with a $750/month HOA, the $750 adds directly to the PITIA denominator in the DSCR calculation. That $750/month is the difference between a 0.92 DSCR and a 1.05 DSCR on the same property.

Before analyzing any condo DSCR acquisition, the first step is getting the actual HOA amount — not the listing estimate, not the building’s published base fee. The actual HOA dues including special assessments, reserve contributions, and fee increases.

Condo Investment? We’ll Calculate Your DSCR Including HOA.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Condo DSCR Program Parameters

Same as SFR for credit score and LTV tiers:
– 640 minimum credit. 80% LTV at 660+, DSCR ≥ 1.00.
– No-ratio at 70% LTV requires 700+.
– No income documentation.
– Max loan $4,000,000.

Additional requirement: Condo project review. The condominium building/association must pass a project eligibility review covering: financial health, reserve adequacy, owner-occupancy percentage, pending litigation, and property condition. Timeline: add 5–7 business days to standard close.

The HOA Effect on Condo DSCR

The same property financed as a condo vs SFR produces dramatically different DSCR:

Scenario A — SFR equivalent: $550,000 purchase. Market rent $3,200/month. Loan at 80% LTV. PITIA (no HOA): $3,280/month. DSCR: 0.98.

Scenario B — Same property as condo: Same $550,000. Same $3,200 rent. HOA: $650/month. PITIA: $3,930/month. DSCR: $3,200 ÷ $3,930 = 0.81.

The $650 HOA moved the deal from borderline no-ratio (0.98) to deep no-ratio (0.81). This is why “is the DSCR viable on this condo?” requires the exact HOA figure, not an estimate.

Condo-specific PITIA calculation:
PITIA = P&I + Property Taxes + Homeowners Insurance + HOA monthly dues

Note: HO-6 (interior condo insurance) is separately required for the unit owner. Master insurance (building exterior) is part of HOA dues. The HO-6 premium for an individual condo unit is typically $100–$300/month and goes in the PITIA.

Florida Condo Investment — Post-Surfside Complexity

Florida’s 2022 Structural Integrity Reserve Study legislation created new compliance requirements for condominium buildings, particularly those 3+ stories built before 1992. Buildings must conduct milestone inspections and fund structural integrity reserves to meet new standards by 2026.

This affects DSCR investors in two ways:

1. Project eligibility. Buildings currently working through reserve funding requirements may be temporarily ineligible for lending programs that require adequate reserve funding. The project review will identify this — confirm project eligibility before going under contract on any Florida condo.

2. Special assessments. Buildings funding required structural repairs are often passing special assessments to unit owners — sometimes $10,000–$50,000+. Even if a special assessment doesn’t affect DSCR directly (it’s a capital call, not a recurring PITIA component), it affects the investment’s total cost and cash position.

Pre-contract due diligence for Florida condo investments: request the most recent HOA financials, meeting minutes (last 12 months), and written disclosure of any pending or approved special assessments.

Condo DSCR Markets Where It Works

Condos work in DSCR markets where rents are high relative to prices:

Fort Lauderdale North Broward: Pompano Beach condos at $280,000–$400,000 with rents of $1,900–$2,400/month and HOA of $250–$400/month can produce 1.00–1.15 DSCR at 80% LTV.

Charlotte Urban Core: Uptown Charlotte condos at $250,000–$450,000 with banking professional renter demand and HOA of $200–$450/month can produce 1.00–1.10 DSCR.

Tampa Westshore / Channelside: Condos at $280,000–$500,000 with HOA of $300–$600/month and rents of $1,900–$2,500/month can approach 1.00 DSCR at 80% LTV.

Frequently Asked Questions

Does condo HOA go into the DSCR calculation? Yes — HOA monthly dues are included in PITIA, which is the denominator of the DSCR calculation.

What is condo project review? A review of the condominium association’s financial health, reserve funding, owner-occupancy ratio, pending litigation, and property condition. Required for all condo DSCR loans. Add 5–7 business days.

Can I get a DSCR loan on a condotel? Hotel-condo structures are treated differently from standard residential condos. Max LTV is typically lower (65–70%). Confirm specific program parameters with your loan officer.

How does Florida’s Surfside legislation affect condo DSCR? Some older Florida buildings may be temporarily ineligible pending reserve funding compliance. Always confirm project eligibility before contract.

About the Author: Mayer Dallal — Managing Director, Mbanc NMLS #38232. [mbanc.com/blog/author/mayer-dallal/]
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Why Condo DSCR Requires More Upfront Work

The single biggest mistake condo DSCR investors make: going under contract, paying for an inspection, then discovering the HOA doesn’t permit short-term rental (if that was the plan) or the condo project fails project review. Both are deal-killers that happen after money is spent.

The condo DSCR pre-application checklist:
1. Get written HOA confirmation of rental permissibility (including STR if applicable)
2. Request HOA financial statements (last 12 months), meeting minutes, and reserve study
3. Confirm no active special assessment or pending litigation
4. Get actual HOA monthly dues (not listing estimate)
5. Confirm project eligibility concept with your loan officer before contract

This pre-contract work takes 3–5 business days and costs nothing. It identifies condo deals that will clear project review vs those that won’t — before the appraisal fee is paid.

Condo DSCR Markets With the Best Investment Profile

The best condo DSCR deals are in markets where HOA dues are reasonable (under $400/month), purchase prices are accessible, and rents are strong relative to unit size:

Charlotte Uptown/South End: 2BR condos at $275,000–$440,000. HOA $200–$400/month. Professional banker renter demand. DSCR 0.95–1.10 at 75–80% LTV.

Fort Lauderdale (Pompano Beach north Broward): 2BR condos at $250,000–$400,000. HOA $300–$600/month. Rents $1,800–$2,500/month. DSCR 0.85–1.05. Requires Florida insurance diligence.

Tampa Westshore/Hyde Park: 2BR condos at $280,000–$500,000. HOA $300–$550/month. Professional tenant base. DSCR 0.88–1.05.

Jacksonville Southside: Condos at $200,000–$340,000. HOA $150–$350/month (lowest in our condo market set). DSCR 1.00–1.20. Best condo DSCR in Florida.

Florida Condo Specific — Post-Surfside Changes

Florida’s SB 4D (2022 Structural Integrity Reform Act) requires:
– Milestone inspections for buildings 3+ stories, 30+ years old by 2024/2026
– Structural Integrity Reserve Studies (SIRS) by Dec 31, 2024
– Reserve funding requirements based on SIRS findings beginning 2026

Buildings that are in compliance: normal project review. Buildings that have failed inspection or are under special assessment for required repairs: may be temporarily ineligible for lending programs. Any 1990s or older Florida condo building requires specific eligibility confirmation before contract.

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DSCR Loan for Condos: The HOA Factor

Condominiums represent the most HOA-sensitive DSCR property type. The monthly HOA fee adds directly to PITIA — reducing DSCR ratio significantly compared to the same purchase price in an SFR with no HOA.

The HOA PITIA impact:
$400,000 condo with $600/month HOA vs $400,000 SFR with no HOA:

At 80% LTV ($320,000 loan at 8.00%):
P&I: $2,349. Taxes (1.2%): $400. Insurance: $80.

SFR PITIA: $2,829. Condo PITIA (add $600 HOA): $3,429. Difference: $600/month.

If market rent is $2,800/month:
SFR DSCR: 0.99 (borderline no-ratio).
Condo DSCR: 0.82. Below standard no-ratio floor.

Same property. Same price. Same rent. $600 HOA is the difference between viable and nonviable.

When condo DSCR works:
Low or no HOA condos (<$200/month): DSCR impact is manageable. High-rent urban condos: If the rent is $3,500+/month on a $400K condo with $600 HOA, DSCR improves: $3,500 ÷ $3,429 = 1.02. Standard. Nashville condos ($350K–$550K, rents $2,200–$3,200, HOA $150–$350): Viable in many scenarios. Charlotte/Raleigh condos: Moderate HOA, strong rent demand, manageable DSCR. Condo project approval:
In addition to DSCR qualification, DSCR condo loans require project-level review. The lender reviews: HOA financial health, reserve fund adequacy, owner-occupancy ratio (typically 50%+ required), no pending litigation, no significant deferred maintenance. Florida post-Surfside: 3-story+ condo buildings 30+ years old require structural integrity reserve studies.

Best DSCR condo markets:
Nashville (downtown/Midtown): $300K–$500K, low HOA, strong rent demand.
Charlotte (uptown/South End): $280K–$450K, moderate HOA.
Dallas (Uptown): $350K–$550K, competitive rents.
Atlanta (Midtown/Buckhead): $280K–$480K, varies widely by building.

Worst DSCR condo markets:
Miami (Brickell/South Beach): HOA $600–$2,500 + high taxes + insurance = DSCR 0.50–0.75.
Chicago (downtown): HOA $500–$2,000 + Cook County taxes = DSCR 0.55–0.80.
NYC metro: Price-to-rent compression + HOA = rarely viable.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

This pre-contract work takes 3–5 business days and costs nothing. It identifies condo deals that will clear project review vs those that won’t — before the appraisal fee is paid.

Condo DSCR Markets With the Best Investment Profile

The best condo DSCR deals are in markets where HOA dues are reasonable (under $400/month), purchase prices are accessible, and rents are strong relative to unit size:

Charlotte Uptown/South End: 2BR condos at $275,000–$440,000. HOA $200–$400/month. Professional banker renter demand. DSCR 0.95–1.10 at 75–80% LTV.

Fort Lauderdale (Pompano Beach north Broward): 2BR condos at $250,000–$400,000. HOA $300–$600/month. Rents $1,800–$2,500/month. DSCR 0.85–1.05. Requires Florida insurance diligence.

Tampa Westshore/Hyde Park: 2BR condos at $280,000–$500,000. HOA $300–$550/month. Professional tenant base. DSCR 0.88–1.05.

Jacksonville Southside: Condos at $200,000–$340,000. HOA $150–$350/month (lowest in our condo market set). DSCR 1.00–1.20. Best condo DSCR in Florida.

Florida Condo Specific — Post-Surfside Changes

Florida’s SB 4D (2022 Structural Integrity Reform Act) requires:
– Milestone inspections for buildings 3+ stories, 30+ years old by 2024/2026
– Structural Integrity Reserve Studies (SIRS) by Dec 31, 2024
– Reserve funding requirements based on SIRS findings beginning 2026

Buildings that are in compliance: normal project review. Buildings that have failed inspection or are under special assessment for required repairs: may be temporarily ineligible for lending programs. Any 1990s or older Florida condo building requires specific eligibility confirmation before contract.

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DSCR Loan for Condos: The HOA Factor

Condominiums represent the most HOA-sensitive DSCR property type. The monthly HOA fee adds directly to PITIA — reducing DSCR ratio significantly compared to the same purchase price in an SFR with no HOA.

The HOA PITIA impact:
$400,000 condo with $600/month HOA vs $400,000 SFR with no HOA:

At 80% LTV ($320,000 loan at 8.00%):
P&I: $2,349. Taxes (1.2%): $400. Insurance: $80.

SFR PITIA: $2,829. Condo PITIA (add $600 HOA): $3,429. Difference: $600/month.

If market rent is $2,800/month:
SFR DSCR: 0.99 (borderline no-ratio).
Condo DSCR: 0.82. Below standard no-ratio floor.

Same property. Same price. Same rent. $600 HOA is the difference between viable and nonviable.

When condo DSCR works:
Low or no HOA condos (<$200/month): DSCR impact is manageable. High-rent urban condos: If the rent is $3,500+/month on a $400K condo with $600 HOA, DSCR improves: $3,500 ÷ $3,429 = 1.02. Standard. Nashville condos ($350K–$550K, rents $2,200–$3,200, HOA $150–$350): Viable in many scenarios. Charlotte/Raleigh condos: Moderate HOA, strong rent demand, manageable DSCR. Condo project approval:
In addition to DSCR qualification, DSCR condo loans require project-level review. The lender reviews: HOA financial health, reserve fund adequacy, owner-occupancy ratio (typically 50%+ required), no pending litigation, no significant deferred maintenance. Florida post-Surfside: 3-story+ condo buildings 30+ years old require structural integrity reserve studies.

Best DSCR condo markets:
Nashville (downtown/Midtown): $300K–$500K, low HOA, strong rent demand.
Charlotte (uptown/South End): $280K–$450K, moderate HOA.
Dallas (Uptown): $350K–$550K, competitive rents.
Atlanta (Midtown/Buckhead): $280K–$480K, varies widely by building.

Worst DSCR condo markets:
Miami (Brickell/South Beach): HOA $600–$2,500 + high taxes + insurance = DSCR 0.50–0.75.
Chicago (downtown): HOA $500–$2,000 + Cook County taxes = DSCR 0.55–0.80.
NYC metro: Price-to-rent compression + HOA = rarely viable.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender