Airbnb and Short-Term Rental Loans Using STR Income
Business Purpose Lending

DSCR financing built around nightly income.

Short-term rental lending is DSCR lending with a different income input. Instead of a twelve-month lease, the lender underwrites projected or historical nightly revenue, which makes documentation and market selection matter far more than they do on a standard rental.

How it works

Airbnb and Short-Term Rental Loans, step by step.

  1. Establish the revenue. Lenders rely on platform statements for a seasoned property, or a market data report for one without history.
  2. Underwrite net, not gross. Nightly revenue is reduced for vacancy, management, cleaning, and platform fees before it reaches the coverage calculation.
  3. Confirm the property is legal to operate. Municipal short-term rental rules are the most common reason these investments fall apart. Verify before you go under contract.
  4. Expect tighter leverage. STR income is treated as more volatile than a signed lease, and pricing reflects that.
At a glance
Income sourceNightly revenue, historical or projected
DocumentationPlatform statements or market revenue report
Regulatory riskLocal STR ordinances must permit the use
SeasoningOperating history improves terms
OccupancyNon-owner-occupied only
VestingEntity vesting available

A standard landlord policy usually will not cover nightly rental. Line up the right insurance early, it surfaces late in underwriting and delays closings.

Who it fits

Built for these borrowers.

  • Investors buying or refinancing an active short-term rental
  • Owners converting a long-term rental to nightly use
  • Operators building a portfolio across vacation markets
  • Borrowers with strong platform history but weak tax returns
What we will ask for

Documents to gather.

  • Twelve months of platform revenue statements
  • Market revenue analysis for new properties
  • Proof the municipality permits short-term rental
  • Entity documents
  • Reserve statements
  • Insurance appropriate to nightly use

Have a project that fits?

Send us the scenario and we will tell you honestly whether it works, and which lender is the right home for it.

Other programs

Explore the rest of the shelf.