Loan Programs

Can I Use a DSCR Loan for Airbnb or Short-Term Rentals?

Last updated: November 18, 2025by LoanGuys.com Team

Yes — DSCR loans are an excellent option for financing Airbnb and short-term rental (STR) properties.

Because DSCR loans qualify based on the income the property generates, they can work perfectly for investors who rent out homes nightly or weekly instead of long-term.

💡 Why DSCR Loans Work for Airbnb Properties

Traditional lenders typically require long-term leases to prove income, but DSCR programs are designed with flexibility in mind.

Lenders can use projected short-term rental income to calculate qualification, based on reliable market data sources like AirDNA, Mashvisor, or local rental comps.

This allows investors to get approved even if:

  • The property is newly purchased and hasn’t generated income yet

  • You plan to switch from long-term rentals to Airbnb

  • You own multiple STRs under an LLC

🧮 How Qualification Works

Lenders calculate your Debt Service Coverage Ratio (DSCR) using your expected monthly rental income versus your monthly mortgage payment.

DSCR = Monthly Rental Income ÷ Monthly Mortgage Payment

For short-term rentals, “rental income” can come from:

  • Airbnb or VRBO income statements

  • Third-party market estimates (AirDNA, etc.)

  • Historical performance from similar nearby properties

This is a tip.

To improve your approval odds, provide detailed occupancy rates and seasonal projections from your listing or analytics platforms.

🏠 Common Eligible Property Types

  • Single-family homes in high-demand vacation areas

  • Condos or townhomes near beaches, lakes, or tourist destinations

  • Small multifamily properties (2–4 units) rented short-term

  • Secondary homes converted into STRs

⚙️ Investor Benefits

  • No personal income verification required

  • LLC ownership allowed for asset protection

  • Use projected income to qualify on new listings

  • Fast closings for quick acquisitions or refinances

  • Portfolio flexibility — finance multiple STRs at once

📈 Pro Tips for STR Investors

  • Keep detailed rental performance data (gross income, average daily rate, occupancy)

  • Factor in cleaning, management, and seasonal costs when analyzing DSCR

  • Make sure your local zoning and HOA allow short-term rentals

  • Use professional photos and strong guest reviews to boost property value

With the right setup, DSCR loans make scaling your Airbnb or vacation rental business faster and more predictable — without traditional income hurdles.

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