Using a DSCR Loan to Finance an Airbnb or Short-Term Rental
Short-term rentals present a unique underwriting challenge: there's often no long-term lease to point to as proof of income. DSCR loans have become one of the most common financing tools for STR investors as a result.
How lenders evaluate STR income
Rather than requiring a signed 12-month lease, many DSCR lenders will use a market rent report, a short-term rental income schedule (sometimes called a 1007 or comparable STR analysis), or platform income history (like Airbnb/VRBO statements) if you're refinancing an existing STR.
New purchase vs. refinance
On a new STR purchase with no track record yet, lenders typically rely on projected income from a licensed appraiser's market analysis. On a refinance of an established STR, actual historical booking income often strengthens your case.
Local regulations matter
Short-term rental ordinances vary widely by city and can change. Before assuming a property will qualify as an STR for DSCR purposes, confirm current local permitting rules — some cities restrict or require licensing for STRs, which can affect both legality and lender willingness to use STR income.
Markets to watch
Coastal California and Scottsdale-area Arizona markets tend to see the strongest STR-focused DSCR demand — see our San Diego and Scottsdale pages for local detail.
Get matched with an STR-friendly DSCR lender to see your options.