Who it is for
- Buying a vacation home you also rent out
- Investors qualifying on Airbnb income instead of personal income
- Second-home buyers who want the rent to offset the payment
- Refinancing an existing STR with 12+ months of booking history
Typical Short-Term Rental Loans requirements
| Second-home conventional | Typically 10–20% down; you must occupy it part of the year |
|---|---|
| Investor conventional | Typically 15–25% down; no personal-use requirement |
| DSCR for STR | Typically 20–25% down; qualifies on STR income with lender haircut |
| STR income counting | 12 months of platform payouts, or projections for purchases; lenders often discount gross income 20–25% |
| Permit requirement | Local STR permit or proof the jurisdiction allows nightly rentals |
| HOA rule | HOA must allow short-term rentals; many ban them outright |
| Minimum credit | Typically 620–700 depending on the program |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Confirm short-term rentals are legal at that address: city/county permit rules plus HOA documents.
- Choose the loan path: second-home (personal use), investor (no use), or DSCR (qualify on rent).
- For DSCR: provide 12 months of booking payouts or a market projection for a purchase.
- The appraiser values the property; some lenders also order a short-term-rent analysis.
- Close, then keep the permit current and file the local lodging taxes.
Pros and cons
Advantages
- Nightly income often beats long-term rent in tourist markets
- DSCR path needs no personal income docs
- Second-home loans offer lower down payments than investor loans
Trade-offs
- STR rules change: cities can ban or cap rentals after you buy
- HOAs frequently prohibit short-term rentals
- Seasonality and platform fees make income lumpier than leases
Documents you’ll need
- 12 months of Airbnb/VRBO payout reports (refinance)
- STR permit or proof local rules allow it
- HOA documents confirming STRs are allowed
- Insurance covering short-term rental use
- Standard income, asset and ID documentation
Short-Term Rental Loans FAQ
Can I use Airbnb income to qualify for a mortgage?
Yes, on DSCR loans and some investor programs. Lenders use 12 months of actual payouts or an approved projection, usually discounted 20–25% for vacancy and fees.
What is the difference between a second-home loan and an STR investor loan?
Second-home loans require you to personally use the property part of the year and allow lower down payments (often 10%). Investor loans have no personal-use requirement but need 15–25% down.
What if the HOA bans short-term rentals?
Then you cannot count STR income, and buying with STR plans is risky: the HOA can fine you or force you to stop. Check HOA documents before you make an offer.
How do lenders verify STR income on a purchase with no history?
Some lenders accept a third-party projection (for example AirDNA) for purchases; others require 12 months of actual history, which limits purchase options. Ask before you write an offer.
Do I need a permit before I apply?
You generally need the property to be permit-eligible, not necessarily permitted yet. But if the city bans STRs outright, no lender will count that income.
How is this different from the short-term rental DSCR page?
That page covers DSCR loans for STRs in detail. This page compares all three financing paths, second-home, investor, and DSCR, so you can pick the right one.
What insurance do I need for an STR?
A short-term rental or commercial host policy. Standard homeowner policies often exclude nightly rental activity, and a claim denial would be expensive.
How do property taxes work on a vacation rental?
Some jurisdictions tax STRs at commercial or non-homestead rates, which can be significantly higher. Check the local tax treatment before you buy.
Can I convert my primary home into an STR later?
Usually yes, but check your loan terms first. Converting to a full-time rental within the first year can violate owner-occupancy agreements.
Official sources
How Short-Term Rental Loans compare
| Short-Term Rental Loans | Short-Term Rental (Airbnb) DSCR Loans | DSCR Loans | Second Home Loans | |
|---|---|---|---|---|
| Best for | Buying a vacation home you also rent out | Buying a vacation rental in a tourist market | Investors whose tax returns show low income after write-offs | Vacation homes |
| Down payment | , | , | 20–25% down; up to 80% LTV on purchase | Typically 10%+ |
| Credit | Typically 620–700 depending on the program | Typically 660–700 | Typically 620–680 (some programs 600) | Typically 620–680 |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
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).
Second Home Loans
A second home loan finances a vacation or part-time residence you occupy for some of the year, often with as little as 10% down on a conventional loan.
Investment Property Loans
An investment property loan finances a 1-4 unit rental you do not live in.