What Is a Short-Term Rental Loan?

Conventional lenders can't count nightly rental income. We qualify short-term rentals on their actual or projected booking income — no tax returns, no personal income.

✔ Rates as low as 5.99%
✔ Up to 80% LTV
✔ No tax returns required
✔ Market projections accepted
✔ Lend in all 50 states

How a Short-Term Rental DSCR Loan Works

Conventional lenders qualify a property on a signed 12-month lease. An Airbnb or VRBO doesn't have one — it has nightly bookings that fluctuate by season, so most banks simply won't count that income at all.

DSCR = Monthly Rental Income ÷ Monthly Debt (PITIA)

PITIA = Principal · Interest · Taxes · Insurance · HOA

We qualify short-term rentals under the same DSCR framework as a long-term rental — using actual booking history if the property already operates as a short-term rental, or a third-party market rent projection report if it doesn't yet.

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New to DSCR Loans?
Start with the basics first

Learn how DSCR loans work before diving into short-term rental specifics.

What Is a DSCR Loan? →
Airbnb & VRBO eligible Any legally operating short-term rental
No booking history needed Market projection report covers new purchases
Up to 80% LTV Purchase and refinance both eligible
Min. DSCR 0.75 Best rates at 1.20+ DSCR
1-4 unit properties Single family, condo, townhome, and small multifamily
Close in as little as 14 days Same timeline as a standard DSCR loan

What Short-Term Rental DSCR Underwriting Looks At

A market rent projection report or your own booking history — either way, still no personal income verification.

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Market rent projection report — Used for a new purchase with no rental history yet, based on comparable short-term rentals in the area.
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12-month booking or payout history — Used instead of a projection report if the property already operates as a short-term rental.
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Minimum DSCR: 0.75 — Best pricing and leverage at 1.20+.
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Minimum credit score: 680
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LLC or individual vesting — Either is accepted for a short-term rental DSCR loan.
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Zoning & permits are on you — Confirm short-term rentals are legally allowed at the property before you buy; the loan doesn't verify this.
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Foreign nationals eligible — No U.S. credit or income history required.
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No tax returns or W-2s — The property qualifies, not you.

Long-Term Rental DSCR vs. Short-Term Rental DSCR

Same program, same rental-income qualification — different way of documenting what the property earns.

Requirement Long-Term Rental DSCR Short-Term Rental DSCR
Income verification Signed lease or market rent Booking history or market projection report
Income variability Fixed monthly amount Seasonal, averaged over 12 months
Minimum DSCR 0.75, best pricing at 1.20–1.25 0.75, best pricing at 1.20–1.25
Max LTV 85% purchase / 80% cash-out 80% purchase / 75% cash-out
Typical timeline As little as 14 days As little as 14 days

How to Get a Short-Term Rental Loan

1
Send us the property details Address and whether it's already operating as a short-term rental — purchase or refinance, either works.
2
We order the income documentation Booking history if it's already operating, or a market rent projection report if it isn't.
3
We calculate the DSCR Average nightly income against the projected monthly payment. No personal income needed.
4
Close in as little as 14 days Fund the deal and repeat on the next one. No income ceiling on how many loans you hold.

Short-Term Rental Loans — Common Questions

What is a short-term rental loan?
It's a DSCR loan for a property operated as an Airbnb, VRBO, or other short-term rental. The property qualifies on its projected or actual short-term rental income instead of your personal income or tax returns.
Can I get a loan for an Airbnb with no rental history yet?
Yes. Lenders use third-party market projection reports to estimate what comparable short-term rentals in that market earn, so a property being purchased fresh can still qualify.
Do I need to show my Airbnb's actual booking income?
If the property already operates as a short-term rental, yes — 12 months of booking or payout history is the strongest documentation. If it doesn't yet, a market projection report fills that gap instead.
Why do short-term rental loans have slightly higher rates than standard DSCR loans?
Short-term rental income is inherently more variable than a signed long-term lease, so lenders price in a modest premium to account for that volatility.
Can I buy a short-term rental through an LLC?
Yes, LLC vesting is standard and widely supported for this loan type.
Does my loan cover whether short-term rentals are legal at the property?
No — that's a separate, local question involving zoning, permits, and HOA rules that has nothing to do with financing. Confirm it before you buy, not after.

From the Desk

More on DSCR investing — markets, deal math, and what the numbers actually say.

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Financing a Short-Term Rental: How DSCR Loans Qualify Airbnb & VRBO Properties
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Bank Denied Your Investment Property Loan? Here's Why — and What Actually Works
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Ready to Finance Your Short-Term Rental?

Get a rate today. Qualify on the property's rental income, close in as little as 14 days, no tax returns required.

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