A short-term rental DSCR loan qualifies an Airbnb or VRBO on what the property can earn as a short-term rental, instead of a 12-month lease. On select programs, experienced short-term rental investors can qualify with up to 100% of the property's AirDNA projected income, including on a purchase with no rental history.
Why short-term rentals are hard to finance
Most rental loans are built around a long-term lease. The appraiser estimates market rent for a 12-month tenant, and the loan qualifies on that number. For a property that earns far more as an Airbnb, that understates the income and can sink the DSCR.
A short-term rental program uses short-term income instead. That's the difference between a deal that pencils and one that doesn't.
How AirDNA income is used
AirDNA is a data service that projects a property's short-term rental revenue from comparable listings nearby: nightly rates, occupancy and seasonality. On select programs, we can qualify the property using that projection.
- Buying a new STR: no rental history needed. The property qualifies on its market data from day one.
- Refinancing an existing STR: your actual booking history can support the income, too.
- Cash-out: pull equity out of an Airbnb you own to buy the next one.
Up to 100% of AirDNA income is available to experienced short-term rental investors on select programs. Newer STR investors may qualify on a portion of the projection, or on long-term market rent.
Financing an Airbnb?
Send us the address and whether you're buying or refinancing. We'll show you how it qualifies.
What to check before you buy
- Local rules. Make sure short-term rentals are allowed and find out whether a permit or license is needed. Rules can change quickly in some cities.
- HOA and condo rules. Many associations limit short-term rentals. Condotels are built for them, and we finance those too.
- Insurance. You'll need coverage written for a short-term rental.
- Furnishing and setup costs. Budget for them separately from the loan.
Short-term rental loans are a type of DSCR loan. For the basics, see what a DSCR loan is.
Frequently asked questions
Can I get an Airbnb loan with no rental history?
Yes. On select programs, a new short-term rental can qualify using projected income from AirDNA market data, with no rental history required.
Can I use Airbnb income for a DSCR loan?
Yes. Short-term rental programs qualify the property on short-term income, either projected from AirDNA data or supported by your booking history.
Do you finance condotels for short-term rental?
Yes. We offer loans on condotels, along with non-warrantable condos, on select programs. Leverage may be lower on these property types.