Qualify on short-term rental income — Airbnb, VRBO, and vacation rental properties are eligible on select DSCR programs.
Short-term rentals (STRs) — Airbnb, VRBO, and vacation rentals — can generate significantly more income than traditional long-term rentals. DSCR loans are available for STR properties on select programs, using either market rent, AirDNA income data, or actual STR income to calculate the DSCR. If you are building a short-term rental portfolio, we have the programs to finance it.
Select DSCR lenders allow short-term rental income to be used for DSCR qualification. Income can be calculated using AirDNA market data, actual STR income history (12 months), or market rent from the appraisal — whichever the lender accepts. Higher STR income can result in a stronger DSCR than a traditional long-term rental.
AirDNA provides market-level data on short-term rental income for specific properties and markets. Some DSCR lenders use AirDNA projections to calculate qualifying income for new STR purchases where no income history exists. This opens up financing for new STR acquisitions.
Popular vacation rental markets — beach towns, ski resorts, lake communities, urban destinations — often support strong STR income that exceeds long-term market rent. DSCR loans allow you to finance properties in these markets based on their STR income potential.
Like all DSCR loans, STR DSCR loans require no personal income documentation. No W-2s, tax returns, or pay stubs. Qualification is based on the property rental income — whether short-term or long-term.
STR DSCR loans can close in the name of an LLC, LP, corporation, or trust. This is ideal for investors who operate their short-term rental business through an entity for liability protection and tax efficiency.
Short-term rental regulations vary significantly by city and county. Some markets have strict STR licensing requirements or outright bans. We recommend verifying local STR regulations before purchasing. We can help you identify STR-friendly markets.
If you already own a short-term rental, a DSCR cash-out refinance can pull equity from the property to fund your next acquisition. We use your actual STR income history to qualify — often resulting in a higher appraised value and stronger DSCR than a traditional rental.
Because DSCR loans do not count against your personal DTI, you can hold multiple STR DSCR loans simultaneously. Each property qualifies on its own income. Build your short-term rental portfolio deal by deal without hitting conventional loan limits.
Yes, on select programs. Some DSCR lenders accept short-term rental income — either actual income history (12 months), AirDNA market projections, or market rent from the appraisal. The accepted income method varies by lender. We will match you to the right program.
AirDNA is a data platform that provides market-level short-term rental income projections for specific properties and markets. Some DSCR lenders use AirDNA data to calculate qualifying income for new STR purchases where no income history exists. This allows you to finance a new Airbnb property before it has a track record.
Yes. Vacation rental properties in beach towns, ski resorts, lake communities, and urban destinations are eligible on select DSCR programs. The property must be non-owner-occupied and comply with local STR regulations.
Lenders typically use an annualized average of your STR income rather than peak-season income. AirDNA projections also account for seasonal patterns. We will help you present your income in the most favorable way to maximize your qualifying DSCR.
Most lenders require the property to be legally permitted for short-term rental use. We recommend verifying local STR regulations before applying. Properties in markets with STR bans or strict licensing requirements may have limited lender options.
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