A good fit if
- You're buying a vacation rental for Airbnb or VRBO
- The property has no long-term lease
- You want to refinance an STR using its booking history
Probably not if
- Short-term rentals aren't allowed at the property
- The HOA bans rentals under 30 days
- You'll live in the home most of the year
How Short-Term Rental Loans Work
A regular DSCR loan uses a long-term lease or market rent. A short-term rental loan uses nightly-rental income instead: either a third-party projection for the property's market, such as an AirDNA report, or at least 12 months of your actual booking income.
Lenders usually discount the projection, typically using 75–80% of projected gross revenue, then calculate DSCR the same way as any rental. Some also require the market to meet a minimum AirDNA market score, or want proof of hosting experience.
Example: projected gross revenue is $78,000 a year. The lender uses 75%, or $58,500, which is $4,875 a month. If the full payment is $3,800, the DSCR is 1.28x.
Short-Term Rental Loan Requirements
- Credit: often from 640, with better terms at 700+.
- Down payment: usually 25% on a purchase; 20% at some lenders for strong files.
- Refinance: usually up to 70–75% LTV.
- Income counted: 75–80% of projected gross, or your actual 12-month history.
- DSCR: 1.0x is typical; a few programs go lower.
- Reserves: often 6 months, since nightly income is more variable.
For a full education on STR financing, read the Airbnb DSCR loan guide.
Check the Local Rules First
This matters more than anything else. Before you make an offer, confirm that short-term rentals are allowed in that city or county, whether you need a permit, and whether the HOA allows rentals under 30 days. Some cities, including Los Angeles, limit short-term rentals to the host's primary residence. Send me the address and I'll check how the rules affect financing.
Using Your Actual Booking History
If you've hosted the property for a year or more and it beats the market projection, some lenders will qualify you on your actual revenue. You'll need platform earnings statements and bank statements that show the deposits.
How to Qualify for an Airbnb Loan
- Confirm short-term rentals are legal at the address and allowed by the HOA.
- Pull a revenue projection for the property, or gather 12 months of booking statements.
- Take 75% of projected monthly revenue and run it as rent in the DSCR calculator.
- Get a short-term rental insurance quote; it's often higher than a landlord policy and goes into the payment.
- Plan for the down payment, closing costs, furnishing, and reserves.
- Send me the scenario, and I'll match it to lenders that like that market.
Documents You'll Need
- Photo ID and credit authorization
- Bank or investment statements for funds to close and reserves
- Purchase contract, or the mortgage statement on a refinance
- Booking platform statements for 12 months, if using actual income
- Short-term rental insurance quote
- Permit or registration, where the city requires one
- LLC documents if you're borrowing in an entity
STR Loan vs. Long-Term Rental DSCR
| Short-term rental | Long-term rental | |
|---|---|---|
| Income source | Projection or 12-month history | Lease or appraiser's market rent |
| Typical max purchase LTV | 75% | 75–80% (85% at some) |
| Insurance | STR-specific policy | Standard landlord policy |
| Pricing | Often slightly higher | Baseline |
If the numbers work either way, a long-term rental on a standard DSCR loan often gets better terms. If the nightly income is what makes the deal work, the STR program is built for it.
Short-Term Rental Loan FAQ
Do I need an existing Airbnb listing?
No. A market projection can qualify a property that has never been rented, so you can finance a new vacation rental purchase.
How much of the projected income do lenders count?
Usually 75–80% of projected gross revenue, to allow for vacancy and seasonality.
Is insurance different for a short-term rental?
Usually. You'll need coverage that allows short-term renting, and it often costs more than a standard landlord policy. Get a quote early, because it goes into the DSCR.
Do I need hosting experience?
Not at most lenders. Some prefer it, or adjust terms for first-time hosts.
Can I use the home myself sometimes?
Some personal use is common, but the loan is for an investment property. If you'll mainly use it yourself, a second-home loan is the better fit.
Business-purpose loans for investment properties in California and other states where permitted. Guidelines shown are typical ranges from published Non-QM lender guidelines as of October 2026 and are not a commitment to lend. Your actual terms depend on credit, property, loan amount, and the lender's current guidelines, and can change without notice.