Airbnb & Short-Term Rental Loans
Specialized financing for vacation rentals, Airbnb, and VRBO properties. DSCR loans using STR income with no tax returns required. Up to 80% LTV nationwide.
Up to 80% LTV
High leverage on STR properties
No Tax Returns
Qualify using STR income only
2-3x Income
Higher returns vs long-term rentals
Nationwide
Finance STR properties anywhere
Why Short-Term Rentals Need Specialized Financing
Traditional lenders often struggle to evaluate short-term rental properties because of their unique operating model. STR properties generate significantly higher income than traditional long-term rentals (often 2-3x more), but they also have:
- Less predictable income due to seasonality
- Higher operating expenses (utilities, cleaning, management)
- More complex management requirements
- Local regulations that vary by jurisdiction
That's where specialized STR lenders come in. These lenders understand the economics of vacation rentals and can properly evaluate the higher income potential of Airbnb and VRBO properties.
Short-Term Rental Loan Options
DSCR Loans for STR Properties
Debt Service Coverage Ratio loans evaluate your property's income, not your personal income. Perfect for short-term rental investors.
- No tax returns required
- Uses actual or projected Airbnb income
- 75-80% LTV available
- Based solely on rental revenue
- Ideal for multiple property owners
Conventional Investment Property Loans
Traditional mortgages can work for STR properties if you have strong personal income and credit to qualify.
- Lower rates for qualified borrowers
- Requires 20-25% down payment
- Personal income verification needed
- STR income may be discounted
- Good credit required (680+)
How Lenders Evaluate STR Income
Specialized STR lenders use sophisticated methods to evaluate your property's income potential:
Income Sources:
- AirDNA reports for market rental projections
- Actual rental history if property has operating data
- Comparable properties in the same market
Adjustments Made:
- Seasonal adjustments for local market
- Conservative occupancy (often 65-75%)
- Higher expense ratios for STR operations
Best Markets for Short-Term Rentals
Beach Communities
Coastal destinations with strong vacation demand year-round or during peak summer seasons.
Mountain Resorts
Ski towns and mountain destinations popular during winter and summer outdoor activities.
Business Travel Hubs
Major cities with consistent corporate travel and convention center activity.
National Parks
Properties near popular national parks and outdoor recreation destinations.
Tourist Attractions
Near theme parks, entertainment venues, and major tourist destinations.
College Towns
University areas with high demand during game days, graduations, and parent weekends.
STR Income Example
Short-Term Rental
Nightly Rate: $250
Annual Occupancy: 65% (237 nights)
Gross STR Income: $59,250
Annual Expenses: $20,000
Net Income: $39,250
Long-Term Rental (Same Property)
Monthly Rent: $2,000
Annual Occupancy: 92% (11 months)
Gross Rental Income: $24,000
Annual Expenses: $8,000
Net Income: $16,000
STR generates 145% more net income in this example
Finance Your Short-Term Rental Investment
Tesni Financial works with specialized STR lenders who understand vacation rental investing. DSCR loans using Airbnb income, no tax returns required, up to 80% LTV.