Common challenges
Long-term rent comps often undervalue a strong STR. STR-specific DSCR programs use the real income.
Programs that fit
Short-Term Rental (Airbnb) DSCR Loans
A short-term rental DSCR loan qualifies a vacation rental on its nightly-rental income, using 12 months of booking history or a third-party projection such as AirDNA, instead of a long-term lease.
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
DSCR Cash-Out Refinance
A DSCR cash-out refinance replaces the loan on a rental with a larger one, sized to the property’s value and qualified on its rent, and pays you the difference in cash.
Tips before you apply
- Confirm city permits and HOA rules first.
- Export 12 months of payout reports before you apply.
FAQ
What is the best mortgage for airbnb & vacation rental hosts?
It depends on your documentation and goal. The programs that most often fit are Short-Term Rental (Airbnb) DSCR Loans, DSCR Loans, DSCR Cash-Out Refinance.