Can I get a DSCR loan on an Airbnb or short-term rental?
Yes, many DSCR lenders finance short-term rentals, typically at 70 to 75 percent loan-to-value, using either twelve months of platform history or a third-party rent projection to calculate the coverage ratio. Expect a rate about a quarter to a half point above a long-term rental and a closer look at local regulations.
How the income is counted
| Situation | How most lenders calculate rent |
|---|---|
| Existing rental with 12+ months of bookings | Trailing twelve-month gross, often discounted 20 to 30 percent for expenses and vacancy |
| Existing rental with less than 12 months | Annualized history, sometimes blended with a projection |
| New purchase, no history | Third-party projection (AirDNA or similar) discounted 20 to 30 percent, or long-term market rent, whichever the lender allows |
| Property in a restricted jurisdiction | Long-term market rent only, or declined |
Because of the discount, a short-term rental usually needs a stronger gross than a long-term rental to reach the same coverage ratio.
Typical terms
Leverage caps at 70 to 75 percent with most lenders, sometimes 80 percent on a strong history. Rates run a quarter to a half point above a comparable long-term rental. Credit minimums are the same as other DSCR loans, usually 660, and reserves of six months are common because seasonal income swings.
What gets short-term rentals declined
- Local rules. Cities with permits, caps, or bans. Lenders check, and some exclude entire markets.
- Condo and HOA restrictions. Bylaws that ban rentals under 30 days.
- Thin history in a seasonal market. Six months of summer bookings does not prove a year.
- Owner use. If you plan to use the property yourself for part of the year, some lenders treat it as a second home and decline the DSCR product.
- Furnishings and operations. Lenders do not finance furniture, and a few want to see a management plan.
Making the file stronger
- Export twelve months of platform statements, not screenshots.
- Provide the permit or a written confirmation that no permit is required.
- Pull a third-party projection before the appraisal and give it to the appraiser.
- Show reserves of six months or more.
- Compare the long-term rent: if the property also covers the payment on a long-term lease, you have a fallback with any DSCR lender.
How CommFi handles it
Our lending desk prices the property on both short-term and long-term income and funds direct when it fits. When the file needs a lender that specializes in short-term rentals or your market, the desk searches a database of 7,000+ lenders and the ones that fit compete for it. Zero upfront fees.
Related reading
Related questions
- Do I need booking history to get a DSCR loan on a short-term rental?
- Not always. Many lenders accept a third-party projection for a new purchase, discounted 20 to 30 percent. Twelve months of history gets better terms.
- What leverage can I get on an Airbnb with a DSCR loan?
- Typically 70 to 75 percent of value, sometimes 80 percent with a strong twelve-month history and a high credit score.
- Do lenders check short-term rental regulations?
- Yes. Properties in cities that ban or cap short-term rentals are often declined, or underwritten on long-term rent only.
- Are short-term rental DSCR rates higher?
- Usually a quarter to a half point above a comparable long-term rental loan.
- Can I use the property myself part of the year?
- Check with the lender first. Significant owner use can move the property into second-home territory and out of the DSCR product.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.