DSCR Loans for Short-Term Rentals

Short-term rental DSCR financing is for investors buying or refinancing non-owner-occupied properties operated as business-purpose vacation rentals.

You may already have booking records or be evaluating a property before its rental business starts. Those are different underwriting situations, and we need to know which applies. Explain the management plan, expected guest use, and whether you intend any personal occupancy. These programs are not a substitute for financing a home you or your family will live in. Eligibility depends on the actual property and use, rather than the platform where it is advertised.

Short-term rental income is reviewed through acceptable rental history or market-rent analysis, with the qualifying approach confirmed in underwriting.

Existing bookings can show how the property has operated, but gross receipts need context. Seasonal demand, cancellations, owner use, management, and changes in the local operating environment all matter. For a new operation, your revenue projection needs support beyond a screenshot of nearby nightly prices. We confirm the documentation and rent treatment for the submitted property rather than assuming every forecast qualifies.

Local rules and association restrictions can prevent the planned use even when the income model looks attractive. Verify permission to operate, licensing where applicable, and insurance suited to guest occupancy. A property that cannot legally follow the business plan does not become eligible because projected bookings cover a payment.

The DSCR program offers up to 80% LTV and a maximum loan of $5M, subject to underwriting.

The approved amount depends on supported value, qualifying rental income, included housing expenses, borrower strength, and the requested transaction. For a purchase, contract price and valuation both matter. For a refinance, existing liens and transaction costs affect the result. Maximum leverage is a ceiling, not the amount every vacation rental can support. Asking for less debt can leave more room for a seasonal business to carry its fixed obligations.

Keep operating reserves separate from cash earmarked for closing. Cleaning, furnishing, repairs, and periods without guests remain your responsibility. A loan qualified on property income does not remove the need for cash when the property is between bookings or temporarily unavailable.

Short-term rental DSCR rates are starting at 6.50%, subject to underwriting, with a 30-year term and origination starting at 1.50%.

An interest-only option is available under the program, with applicability confirmed for the individual request. Actual pricing reflects leverage, borrower credit, liquidity, property characteristics, and the income evidence accepted in review. Compare payment structure, prepayment conditions, closing costs, and reserves alongside the rate. Interest-only payments do not reduce principal, so the remaining balance still matters when you sell or refinance. We quote the structure for your property rather than promising a rate from the listing alone.

Short-term and long-term rental DSCR loans share an income-based approach but can require different evidence of dependable rent.

An executed residential lease tells a different story from changing guest bookings. A vacation rental may offer operational opportunities alongside greater income variation and more active management. A long-term lease can simplify the income record but brings its own vacancy and tenant risks. Neither strategy wins automatically. Choose the use that local rules allow, your management plan can handle, and the property's accepted income can support. Changing the rental model later should be evaluated against the loan documents and operating requirements.

Submit a short-term rental request with the property, transaction type, value or price, income evidence, and intended operating plan.

Include available rental history, taxes, insurance, association dues, ownership information, and borrower details. Explain any renovation needed before guests can stay and identify unresolved restrictions or licensing questions. If your figures are projections, label them as projections. We can then identify what needs support before indicative terms and subsequent underwriting. A clear operating plan is more useful than a headline revenue estimate that leaves out how the property will actually function.

Send the scenario through our deal form and identify the intended short-term rental use.