Short-term rental (STR) financing funds properties operated on Airbnb, VRBO, and other nightly rental platforms. DSCR loans for STRs qualify on projected or actual short-term rental income rather than long-term market rent, which typically underwrites the property at 40-70% higher qualifying income — a huge advantage for cash-flowing beach, mountain, and destination properties.
Two ways to document STR income: (1) an AirDNA Rentalizer report projecting revenue from comparable listings within a defined radius, or (2) 12 months of platform statements from Airbnb/VRBO showing actual gross revenue. Most lenders will underwrite to the lower of AirDNA and actuals. Some accept 6 months of statements with a bump for seasonality.
Standard STR DSCR terms: 20-25% down, 660+ FICO, 30-year fixed or ARM, and closing in an LLC. Watch for local STR regulations — some cities (Santa Monica, NYC, San Francisco) effectively ban STRs, while others (Panama City Beach, Kissimmee, Gatlinburg, Broken Bow) welcome them. Underwriters check zoning before closing.
Get an STR quote or explore our short-term rental market guides.