Short-term rentals, like an Airbnb or vacation rental, can earn more per month than a traditional lease, but they also come with more turnover and seasonality. Lenders treat them a little differently as a result.
Loan options
- Conventional investment loans, qualifying on your personal income
- DSCR loans, which qualify based on the property's income rather than your tax returns
- Second-home loans, if you will also use it personally and meet the rules
How income is viewed
Because nightly bookings swing with the season, some lenders are cautious about counting short-term rental income, while DSCR lenders may use projected or market rents. The approach varies, so the loan you choose matters.
Plan for the extra costs
Budget for furnishing, cleaning, management, higher insurance, and slower months. Strong properties still cash flow, but the expenses are higher than a standard rental.
If your tax returns make qualifying hard, a DSCR loan that leans on the property's income could be the simplest path. We can compare your options.