What is an Airbnb DSCR loan?

An investment property loan that qualifies on the short-term rental's income instead of yours. The debt service coverage ratio (DSCR) compares the property's STR income to its monthly payment, and 1.00 or higher qualifies for the top LTV tier.

Is this for first-time STR investors?

Yes. You do not need to have hosted before, because a market projection qualifies the purchase. If this is your first investment property of any kind, DSCR also needs you to own your home and have a 700 credit score; if you don't, the Hybrid Investor Loan is where to start.

What credit score do I need for an Airbnb DSCR loan?

The minimum is 640. Up to 80% LTV on a purchase starts at a 700 credit score, on loans up to $1.5M. Lower scores and larger loans need more down.

Can I buy a short-term rental with 15% down?

Not on DSCR: plan for at least 20% down, since STR purchases go up to 80% LTV at the top credit tier. To put 15% down, look at the Hybrid Investor Loan above, which goes up to 85% LTV.

Can I buy an Airbnb in an LLC with a DSCR loan?

Yes. Most of our STR borrowers vest in an LLC. We finance individual borrowers, single-member LLCs, multi-member LLCs and layered entities.

Can I use the property myself?

No. These are investment property loans for properties rented to guests, not personal vacation homes.

What if my city restricts short-term rentals?

We finance short-term rentals in markets where they are legal. If the city requires a permit or license, the property needs it before closing, and we check the local rules with you during the deal analysis.

Can I refinance a short-term rental with a DSCR loan?

Yes. Cash-out refinances go up to 80% LTV at the top credit tier, and cash-out starts at a 660 credit score. The rental's income qualifies the refinance the same way it qualifies a purchase.

Airbnb DSCR loans that qualify on STR income

No rental history needed. Prove the rent with a market projection, an STR appraisal, 12 months of bookings or deposits, with no personal income on file.

Get my STR quote Call (800) 304-1925

Credit scores from 640
Loan amounts up to $3.5M
LLC vesting allowed
Close in as little as 15 days

4.9 stars from 1,000+ reviews

Recognized lending partner of AirDNA, Rabbu, Mashvisor, and BiggerPockets.

Mashvisor

Four ways to prove STR income

Your personal income stays off the file. The short-term rental's income qualifies the loan, and any one of these proves it.

AirDNA market projection
An AirDNA projection for the address, dated within 90 days, can qualify a purchase that has never hosted a guest.
STR appraisal
An appraiser who specializes in short-term rentals values the property on what it earns by the night, not what it would rent for by the year.
12 months of booking history
A 12-month statement from Airbnb, VRBO or your management platform, for a property that is already hosting.
12 months of bank deposits
Bank statements showing 12 months of short-term rental deposits.

How the DSCR is calculated

Qualifying rent is gross STR income times 0.80, divided by the monthly payment including taxes, insurance and HOA. A DSCR of 1.00 or higher qualifies for the top LTV tier.

Worked example

AirDNA projection, gross income: $72,000 a year
Monthly gross income: $6,000
Qualifying rent at 80%: $4,800
Monthly payment with taxes, insurance and HOA: $4,000
DSCR: 1.20

$4,800 divided by $4,000. Above 1.00, so the rent carries the loan.

How an Airbnb DSCR loan works

We set the STR income
For a new short-term rental, an AirDNA projection or an STR appraisal sets the rent. For one that is already hosting, we use 12 months of booking history or bank deposits.
Calculate the DSCR
Gross STR income times 0.80, divided by the monthly payment including taxes, insurance and HOA. 1.00 or higher qualifies for the top LTV tier.
Underwrite the property, not your paystubs
No personal tax returns, W-2s or employment verification. We are financing a rental, so we underwrite the rental.
Close in as little as 15 days
In-house underwriting and direct funding, in your name or your LLC. Lock the property before an investor with slower financing does.

Short-term rental DSCR requirements

Short-term rental DSCR requirements
Minimum credit score	640
Max purchase LTV	Up to 80% at the top credit tier, with a DSCR of 1.00 or higher on loans up to $1.5M. Below a 1.00 DSCR, up to 75%.
Loan amounts	$100K to $3.5M
Interest only	680 credit score, up to 75% LTV
Terms	15, 30 and 40 year fixed, plus 5/6, 7/6 and 10/6 ARMs
LLC vesting	Allowed, including single-member and multi-member LLCs
Property types	Single family, 2 to 4 units, condos, condotels, and rural properties up to 5 acres

Eligible booking platforms

We accept booking history from any major short-term rental platform.

Airbnb
VRBO
Vacasa
FlipKey
Booking.com
Hopper
Marriott Homes & Villas
Direct booking on your own site

STR investors we've financed

Our Loan Advisors invest in real estate too, so they look at your deal the way they would look at their own.

4.9

1,000+ reviews across all platforms

4.9 starsGoogle
4.9 starsZillow

Hunter provided exceptional support in the funding of my first STR loan. He was very responsive and ensured that all issues and questions were rapidly resolved. The loan was delivered on time and at a lower cost than the original good faith estimate.
Mark, STR investor, Google review
Dominick was great to work with on our transaction with my investor client! He was very responsive and did everything he could to make sure the transaction went smooth from start to finish. Had great knowledge on STR's specifically which made the process even more streamlined!
Megan, Real estate agent, Nashville, TN
Dominick and Kim were true professionals from start to finish. As hiccups always happens with these deals, they remained poised and kept fluid updates throughout keeping the clients goals top of mind. Dominick will now be a go to lender for my team which operates the Disney Corridor area.
Austin, Real estate agent, Austin, TX

Case study

From one Airbnb to five in 14 months

A full-time host owned one cabin in Sevierville, Tennessee, and his bank would not finance another because depreciation kept his taxable income low. We financed each new rental on its own short-term rental income, and cash-out refinances on the ones already booking funded the next down payment. Fourteen months later he owned five short-term rentals across Tennessee, North Carolina and Florida, with the same team on every loan.

short-term rentals: 1 to 5
months: 14
states: 3

Airbnb DSCR loan questions

Get my STR quote

Tell us about the property and we will run the DSCR with you before you commit.

Soft credit pull, deal analysis at no cost, and one named Loan Advisor from quote to closing.