Can I get a DSCR loan on an Airbnb property?
Yes - via short-term rental DSCR programs that qualify on STR income (AirDNA projection or T12 statement) instead of long-term rental comps.
Short-term rental DSCR loans are designed specifically for Airbnb / VRBO properties. They differ from standard DSCR in how rental income is calculated. Standard DSCR uses long-term-lease comparable rent from a 1007 appraisal addendum. STR DSCR uses one of three methods: (1) AirDNA Rentalizer projection for the subject address, (2) T6/T12 trailing statement showing nightly-rate revenue and occupancy, or (3) market-rent appraisal addendum that captures STR comps. The lender applies an expense ratio (20-25% typical) to gross STR income before computing DSCR. Lender verifies: (a) local STR ordinance permits operation - cities with bans disqualify, (b) HOA bylaws don't prohibit STR (most condos do), (c) AirDNA report is current and matches subject address. STR DSCR rate runs 0.125-0.5% above standard DSCR. LTV typically capped at 75-80% on purchase. For STR-eligible properties in vacation markets (Smokies, beaches, ski towns, urban Airbnb cities), STR DSCR usually qualifies the borrower at higher loan amount than standard DSCR would, because nightly-rate income exceeds long-term-lease comp income.
People also ask
What if my city is considering banning Airbnb?
Lenders verify the current ordinance at close. If the ordinance allows STR at close, the loan funds. Future ordinance changes are your operational risk - some lenders require operator notice if you discontinue STR.
Can I qualify a vacant property using AirDNA projection?
Yes. AirDNA Rentalizer produces address-specific revenue projections that work for vacant properties. The lender uses the projected income for DSCR calculation.
Got a specific scenario?
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STR / Airbnb DSCR
DSCR loans that qualify on short-term rental income. Airbnb, VRBO, and direct-booking properties. Use AirDNA projections or 12-month T12 STR statement.
No-Ratio DSCR
No-ratio DSCR investment property loans. Qualify even if rent does not cover the mortgage payment. Higher down payment in exchange.
Condotel
DSCR and non-QM financing for condotel units. Hotel-condos that fail conventional warrantability still finance through specialty investor lenders.
STR vs LTR DSCR
Short-term rental DSCR or long-term rental DSCR? Compare income calculation, LTV, and which strategy fits your property.