1. Property and transaction
Share the address, property type, purchase price or estimated value, loan purpose, requested amount, and intended short-term-rental use.
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Short Term Rental Financing
Finance an eligible vacation rental using supportable property income and cash flow. Get a scenario-specific review for a purchase, rate-and-term refinance, or cash-out refinance.
Investment property only. Eligibility and terms vary by transaction, property, borrower, state, and current program guidelines.
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Loan overview
Short-term rental loan details
Use this summary to understand how theLender reviews an STR scenario. Current approved program materials and final underwriting determine the available terms for a specific property and borrower.
| Loan purposes and amounts | Purchase, rate-and-term refinance, and cash-out refinance. Loan amounts generally range from $100,000 to $3.5 million when DSCR is at least 1.00, or up to $3 million when DSCR is below 1.00. Eligibility, leverage, and current guidelines apply. |
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| Occupancy | Investment property only. The borrower or immediate family may not occupy the property. Recent occupancy may require a current lease and proof of rent. |
| DSCR qualification | Options may be available whether DSCR is at least 1.00 or below 1.00. DSCR is gross monthly rent divided by principal, interest, taxes, insurance, and association dues. Interest-only loans use the qualifying interest-only housing payment. |
| STR income method | Gross monthly rent is generally based on a 12-month average, reduced by a 20% expense factor. If documented actual expenses are higher, the higher expense amount is used. |
| Accepted income support | Support may include an appraiser-prepared rent schedule or STR analysis, 12 months of third-party rental history, or 12 months of bank statements supported by rental records. Eligible purchases may use approved market-rent data with qualifying comparable properties. |
| Property review | Eligible properties may include single-family homes, condos, condo hotels, two-to-four-unit properties, modular homes, rural properties, and leaseholds, subject to restrictions. A full appraisal is required, and loans above $2 million require a second appraisal. |
| Cash requirements | Reserve requirements range from 0 to 6 months of the housing payment based on loan amount and purpose. Cash-out proceeds may satisfy reserves. Down payment or equity, cash to close, reserves, and post-closing liquidity remain separate requirements. |
| Available terms and pricing | Available structures include 30- and 40-year fixed terms, 7/6 and 10/6 adjustable-rate terms, and eligible interest-only options. Prepayment terms may extend up to 5 years, subject to state restrictions. Request a current quote for scenario-specific rates and pricing. |
Eligibility and terms vary by transaction, property, borrower, state, and current program guidelines. Final underwriting and approved documents control.
Ready to purchase your next vacation rental?
Short-term rental debt service coverage ratio (DSCR) financing evaluates an eligible investment property using its supportable rental income and proposed housing payment. Eligible STR income is generally evaluated using an approved 12-month seasonal average and an expense factor. Actual expenses may control when they are higher. Accepted income sources and calculations vary by transaction and current program guidelines. We review the property, borrower, transaction, state, and current program before presenting an option.
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Short-Term Rentals
Short-term rentals (STRs), often called vacation rentals, are furnished investment properties rented for brief stays. They may include single-family homes, apartments, or condominiums offered through platforms such as Airbnb or Vrbo. Revenue can vary by season, local demand, nightly rate, occupancy, operating costs, and local rules. STR financing focuses on the subject property's eligible income and cash flow rather than relying on traditional personal-income documents. Property eligibility, permitted use, valuation, insurance, management, and current underwriting guidelines still apply. Historical market averages do not predict the performance of a specific property.
Scenario review
What to prepare for an STR loan review
A complete scenario helps the team identify the current program path and the documentation needed for the property.
2. Income and expenses
Provide available rental history, seasonal market support, current or projected operating expenses, and any management information that applies.
3. Eligibility documents
Be ready to discuss ownership, liquidity, insurance, title, property condition, and evidence that short-term rentals are permitted at the property.
Ready for a property-specific review?
Send the basics and discuss current eligibility, documentation, and available structures with theLender.
Get an Estimate
Share the property, transaction, and requested loan details for a scenario review. A member of theLender team can discuss current eligibility, documentation, and available structures. This is not an approval, commitment, or rate quote.
Short Term Rentals
Please answer a few questions and submit this form to receive a loan estimate.
Frequently Asked Questions
1. What qualifies as a short-term rental property?
A short-term rental is a furnished investment property offered for brief stays. Eligibility depends on the property type, location, permitted use, transaction, borrower, state, and current program guidelines. The borrower or immediate family may not occupy an investment property financed under an STR program.
2. How do lenders calculate income for short-term rental properties?
Eligible STR income is generally evaluated using an approved 12-month seasonal average and an expense factor. Actual expenses may control when they are higher. Accepted sources, market evidence, calculations, and required documentation vary by transaction and current program guidelines. Final underwriting and approved documents control.
3. Are down payment requirements greater for short-term rental loans?
Required equity and maximum loan-to-value depend on the transaction, property, borrower, state, and current program guidelines. Purchase transactions are evaluated using down payment and cash-to-close requirements. Refinance transactions are evaluated using value, payoff, proceeds, costs, and applicable loan-to-value limits. Ask for a current scenario review rather than relying on a generic percentage.
4. What are the additional requirements for short-term rental loans?
Requirements may include evidence that short-term rentals are permitted, an eligible valuation or rent analysis, appropriate insurance, title and entity documents, property-condition information, reserves, and other transaction-specific documentation. Reserve requirements are scenario-dependent. Current approved program materials, state restrictions, underwriting, valuation, title, insurance, and final loan documents control.
5. Can I convert my primary residence to a short-term rental with this financing?
STR financing is for eligible investment properties, not owner-occupied homes. If a property is currently or was recently a primary residence, review the existing loan documents, occupancy history, intended use, and current program requirements with the appropriate professionals before changing its use or requesting financing. Eligibility varies by transaction and current guidelines.