Short-term rental DSCR loans
A short-term rental DSCR loan finances a vacation or nightly rental based on whether its income covers the payment. Lenders count that income differently, using booking history, a third-party market projection or plain long-term market rent, so the same property can show very different ratios.
Who is this loan a good fit for?
- Investors buying a property in an area where short-term rentals are legally allowed
- Owners of an existing short-term rental with a booking history
- Investors whose property earns more on a nightly basis than on a long-term lease
Run the ratio two ways
Calculate the DSCR on your projected short-term income and again on long-term market rent. If the deal works on both, you have flexibility across programs. If it only works on peak-season numbers, treat that as a risk.
Business-purpose loans for non-owner-occupied investment property only. Debt Service Coverage Ratio is a mortgage broker: we arrange and shop financing from wholesale lenders, and every loan is subject to the lender's underwriting and approval.
How does this loan work?
Confirm local rules first
Check city, county and HOA rules on short-term rentals before you rely on that income. Lenders may not count income a property is not allowed to earn.
Gather the income evidence
For an existing rental, platform statements or management reports. For a purchase, a market data report or the appraiser's rent analysis.
We match the method
We find wholesale lender programs whose way of counting short-term income fits your property and records.
Appraisal and underwriting
The appraisal supports value and rent. Underwriting reviews income documentation, reserves and the property.
What should you expect during underwriting?
- Income documentation suited to the program, such as booking history or a market projection
- Possible adjustments to projected income for seasonality and operating costs
- Insurance appropriate for a short-term rental
- A business-purpose certification confirming no personal use of the property
What should you check before applying?
- Local rules can change; a ban or permit cap can affect both income and eligibility.
- Furnishing, cleaning and platform fees are real costs even if they are not in the ratio.
- Personal vacation use is not compatible with these loans; the property must be investment only.
What should you know about short-term rental dscr loans?
Can I use projected short-term rental income for a DSCR loan?
Some programs accept a third-party projection of short-term income; others only use long-term market rent from the appraisal. We tell you which approach each program uses.
Can I stay in my short-term rental sometimes?
No. These are business-purpose loans for non-owner-occupied investment property, and personal use of the property is not allowed.
What if my city restricts short-term rentals?
Lenders may not count short-term income the property is not permitted to earn. The ratio would then be based on long-term rent, if the program allows that.
Which guides should you read next?
Which other DSCR loan options are available?
DSCR purchase loans
Buy a rental with financing sized to what the property rents for, using appraisal market rent in the ratio.
DSCR cash-out refinance
Pull equity out of a rental you own, with the larger new loan still qualifying on the property's rent.
DSCR rate-and-term refinance
Replace a rental's current loan to change its pricing, term or structure without taking meaningful cash out.
2-4 unit DSCR loans
Finance a duplex, triplex or fourplex where the rent from every unit is combined on top of the ratio.
Investment property loans
An overview of business-purpose financing for non-owner-occupied rentals, and where a DSCR loan fits among the options.
Ready to discuss your rental property ratio?
Send the rent, the property and what you want to do. We take the scenario to multiple wholesale lenders, show how each one reads your DSCR, and explain the tradeoffs before you commit to anything.