For investors who need permanent financing for their rentals listed on Airbnb and VRBO. This product allows DSCR to be calculated by using 12 months of operating history OR AirDNA rents as market rent.

The Overview of the Short-Term Rental DSCR Loan Program

The Short-Term Rental DSCR Loan is built for real estate investors looking for permanent financing on properties listed on platforms like Airbnb or VRBO. Instead of relying on personal income documentation, the loan uses the property’s rental income to qualify, making it a practical solution for investors who run their properties as short-term rentals.

This program gives investors the chance to tap into long-term financing even when traditional lenders hesitate due to the fluctuating nature of short-term rental income. Whether you’re refinancing a high-interest bridge loan or purchasing a new short-term rental, this program offers a path to stable, longer-term financing.

Key Features of the Short-Term Rental DSCR Loan Program

• Loan Purpose: Permanent financing for short-term rental properties.
• Loan Terms: 30-year fully amortizing or interest-only for 10 years, with a rate fixed for 5 years before adjusting every six months.
• Loan Amounts: $75,000 to $1.5 million, with exceptions considered for loans outside this range.
• LTV Limits: Up to 75% LTV for purchases or rate/term refinances; up to 70% for cash-out refinances with minimal seasoning.
• Debt Service Coverage Ratio (DSCR): Minimum DSCR of 1.00.
• Speed: Typically closes in 2-3 weeks.
• Prepayment Penalty Options: Multiple choices available, including no prepayment penalty in some states.

Who is the Short-Term Rental DSCR Loan Program For?

This program is ideal for:

1. Experienced Short-Term Rental Investors

• Investors who own properties actively rented through platforms like Airbnb or VRBO.