Short-Term Rental DSCR Loans
Finance your Airbnb, VRBO, or vacation rental with projected STR income. Use AirDNA reports or 12-month rental history to qualify.
HOW IT WORKS
How Short-Term Rental DSCR Loans Work
The STR DSCR program accepts short-term rental income where most DSCR lenders only accept long-term leases. Income is documented in one of three ways: an AirDNA report (third-party projected income based on comparable STR properties), 12-month Airbnb/VRBO booking history (actual revenue for refinances), or an appraiser STR income analysis.
Most lenders use the lesser of the documented income source and apply a vacancy/expense factor (typically 25-30% reduction from gross STR income). This adjusted figure is the qualifying rent used in the DSCR calculation.
Some lenders require 25% down for STR properties because STR income is more volatile than long-term rental income. Stronger FICO scores and DSCR ratios can unlock 20% down options through specific lenders in the network.
The lender or their counsel will confirm that the property is in a jurisdiction that allows short-term rentals and that no HOA restrictions prohibit STR use. Some lenders require a copy of the local STR permit or license if one is required by the municipality.
REQUIREMENTS
Do You Qualify for a Short-Term Rental DSCR Loan?
You Qualify If
- You are buying or refinancing an Airbnb, VRBO, or vacation rental
- Your property is in a market with documented STR demand
- You have an AirDNA report or 12 months of booking history
- Your FICO score is 680 or higher
- You can put 20-25% down
- Your property's jurisdiction allows short-term rentals
- No HOA restrictions prohibit STR use on the property
This May Not Be Right If
- Your local municipality has banned or severely restricted short-term rentals
- Your HOA prohibits STR use and there is no variance process
- You have no AirDNA data or rental history to document STR income
- Your FICO score is below 680
- You are operating an unpermitted STR in a market that requires a license
Not sure? A specialist can review your specific scenario.
DEAL EXAMPLE
Real Short-Term Rental DSCR Deal
Mike L., Tennessee
3BR/2BA cabin near Gatlinburg, TN
Short-Term Rental DSCRSTR income was documented using AirDNA market data and trailing 12-month revenue from comparable cabins within 2 miles. The lender accepted projected STR income rather than requiring a traditional lease.
"Every lender I called said they don't count Airbnb income. My broker found one that uses AirDNA projections. A Gatlinburg cabin at 1.47x DSCR? I'm buying another one this spring."
Mike L., Tennessee
Results may vary. This is a representative example, not a guarantee of future performance.
SPECIALIST STRUCTURING
How a Specialist Structures a Short-Term Rental DSCR Deal
Short-Term Rental DSCR programs vary widely between lenders. Overlays, exception tolerance, and program guidelines shift constantly. Your matched specialist's job is not to send you a rate sheet. It's to structure your file for the lender most likely to approve it. Here's what that looks like in practice.
Lender Overlay Mapping
Every Short-Term Rental DSCR lender has different overlays: credit minimums, reserves, property condition rules, and exception tolerance. Your specialist knows which lenders' overlays match your scenario.
File Presentation
How a file is presented to an underwriter often determines approval. Your specialist frames the narrative (compensating factors, rent comps, reserves) to give your file the best chance.
Exception Hunting
When an automated decision says no, the specialist asks why and what would change it. That's the difference between losing a deal and saving it.
Pivot When Needed
If the first lender declines, your specialist pivots to a second within 48 hours, not weeks. The 70+ lender network exists to keep deals moving when one path closes.
Loan terms and approval are subject to your specialist's review, full underwriting, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.
COMPARE
How Short-Term Rental DSCR Compares
| Feature | Short-Term Rental DSCR | Standard DSCR | Interest-Only DSCR |
|---|---|---|---|
| Min DSCR | 1.0x | 1.0x | 1.0x |
| Min Down Payment | 20-25% | 20% | 20% |
| Min FICO | 680 | 660 | 680 |
| Best For | Airbnb/VRBO operators | Cash-flowing rentals | Cash flow maximizers |
| Unique Feature | AirDNA projections accepted | No income docs, no property cap | Lower payments boost DSCR |
FAQ
Short-Term Rental DSCR FAQ
No. For new purchases, lenders accept an AirDNA report or appraiser STR income analysis as projected income. You do not need to already be operating the property as an STR.
Yes. The lender or their counsel will confirm that the property is in a jurisdiction that allows short-term rentals and that no HOA restrictions prohibit STR use. Some lenders require a copy of the local STR permit or license if one is required.
Some lenders require 25% down for STR properties because STR income is more volatile than long-term rental income. Higher occupancy risk means the lender wants more equity protection. Your broker will find lenders offering 20% down if your FICO and DSCR are strong.
The AirDNA report is the standard. It aggregates data from Airbnb, VRBO, and other booking platforms to project income. If you have actual booking history, most lenders accept combined income from all platforms you list on.
High-tourism destinations with consistent STR demand: Smoky Mountains (TN), Gulf Coast (FL), Scottsdale (AZ), Joshua Tree (CA), Big Bear (CA), Outer Banks (NC), Poconos (PA), ski towns (CO, UT). Markets with strong AirDNA data and proven STR track records get the smoothest approvals.
READY?
Ready for a Short-Term Rental DSCR Loan?
Your Airbnb income counts. Get matched with a specialist who structures STR DSCR deals. No credit pull to get matched.
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