Vacation Rental Loans
"Finance your Airbnb investment."
Specialized financing for short-term rental properties. Qualify using projected rental income from Airbnb, VRBO, and other booking platforms.
20-25%
Min Down
680+
Min Credit
$3M+
Max Loan
Vacation Rental Loans Benefits
Everything you need to know about your benefits
STR Income Qualifies
Use projected or actual short-term rental income instead of long-term lease rates
No Tax Returns
DSCR-based qualification means no personal income documentation required
Higher Cash Flow Potential
Vacation rentals often generate 2-3x more income than long-term rentals
LLC Ownership OK
Hold properties in business entities for liability protection and tax benefits
Portfolio Scalable
Build a vacation rental empire without personal income limiting your purchases
Multiple Property Types
Finance beach houses, mountain cabins, urban condos, and more
How It Works
Your path to homeownership in just a few simple steps
Find STR-Friendly Property
Identify properties in high-tourism areas that allow short-term rentals (check HOA and zoning).
Analyze Rental Potential
Use AirDNA or actual booking history to project income and verify DSCR qualification.
Submit STR Documentation
Provide booking history, projections, or market analysis to support income qualification.
DSCR Underwriting
Lender calculates DSCR using projected STR income vs. monthly payment (typically 1.0-1.25 required).
Find STR-Friendly Property
Identify properties in high-tourism areas that allow short-term rentals (check HOA and zoning).
Analyze Rental Potential
Use AirDNA or actual booking history to project income and verify DSCR qualification.
Submit STR Documentation
Provide booking history, projections, or market analysis to support income qualification.
DSCR Underwriting
Lender calculates DSCR using projected STR income vs. monthly payment (typically 1.0-1.25 required).
Close and List
Complete purchase and launch your listing on Airbnb, VRBO, or your preferred platform.
Loan Details
Documentation Required
- 12-24 months Airbnb/VRBO income history (if available)
- AirDNA or similar market projection report
- Property management agreement (if applicable)
- Bank statements showing rental deposits
- Property appraisal with STR income analysis
Eligible Property Types
- Single-family homes in tourist areas
- Condos and townhomes (STR-allowed)
- Beach houses and lake properties
- Mountain cabins and ski condos
- Urban apartments in high-demand cities
Additional Info
- DSCR calculated using STR income projections
- Properties with booking history preferred
- Furnished property value considered
- Higher reserves for seasonal markets
Vacation Rental vs. Other Loan Types
| Feature | Vacation Rental (DSCR)(This loan) | Second Home | Traditional Investment |
|---|---|---|---|
| Primary Use | Full-time STR rental | Personal + limited rental | Long-term tenant |
| Income Qualification | STR projections/history | Personal income (DTI) | Lease income or DTI |
| Down Payment | 20-25% | 10% | 15-25% |
| Tax Returns Required | No | Yes | Depends on loan type |
| Rental Restrictions | None (verify zoning) | Limited rental allowed | None |
| Best For | Airbnb investors | Personal vacation use | Traditional landlords |
| Seasonality Considered | Yes (annual average) | N/A | No (12-month lease) |
* Rates and terms subject to change. Contact us for current offers.
Frequently Asked Questions
Common questions about Vacation Rental Loans
Last updated:
How do lenders calculate income for vacation rentals?
Lenders use one of three methods: actual booking history (12-24 months of Airbnb/VRBO income), AirDNA market projections for new purchases, or a hybrid approach blending history with projections. Properties with proven track records typically get better terms.
What DSCR is required for vacation rental loans?
Most lenders require 1.0-1.25 DSCR for vacation rentals, meaning the projected annual income must equal or exceed 100-125% of annual debt service. Stronger DSCR (1.25+) may qualify for better rates.
Can I finance a property with no rental history?
Yes, for new purchases we can use AirDNA or similar market data to project income based on comparable properties in the area. The appraiser may also provide an STR income addendum analyzing the property rental potential.
- Lenders analyze annual average income, not just peak season. Beach properties may have strong summer months but lower winter occupancy. We calculate DSCR using 12-month projected income to account for seasonal fluctuations.
- You cannot use STR income to qualify if rentals are restricted. Before purchasing, verify HOA rules and local zoning ordinances allow short-term rentals. Some areas require permits or have minimum stay requirements.
- Second home loans require personal use intent and limit rental activity—you get better rates but cannot run a full-time Airbnb. Vacation rental loans assume full-time STR operation and qualify using rental income, but require higher down payments (20-25% vs 10%).
Get Rate Drop Alerts
We'll notify you instantly when rates drop to your target.
Ready to Finance Your Vacation Rental?
Use Airbnb income to qualify—no tax returns required
Or call us directly: (757) 558-2603