How lenders underwrite short-term rentals
Short-term rental DSCR loans use the property's actual booking history or a projection from a market data report (such as AirDNA) or the appraiser's short-term rent survey. Lenders typically count a share of gross rents, often around 80%, to allow for vacancy and management costs.
Tips for getting approved
- Check local STR regulations and permits before you buy
- Keep 12 months of booking statements if the property is already operating
- Budget for furnishing, which usually isn't financed
- Consider no-doc financing if the market's STR data is thin
Airbnb & Short-Term Rental Loans: terms at a glance
| Income used | Actual or projected short-term rents |
|---|---|
| Term | 30-year fixed |
| Leverage | Up to 75–80% depending on program |
| Properties | 1–4 unit, condos, vacation homes |
| Vesting | Individual, LLC or corporation |
Terms shown are representative and subject to underwriting, appraisal and state availability. All loans are business-purpose loans on non-owner-occupied property. This is not a commitment to lend.