Airbnb & Short-Term Rental DSCR Loans
Finance your STR investment property using actual or projected Airbnb income—no tax returns, no W-2s. Florida, Texas, Colorado, and beyond.
DSCR Financing for Airbnb Investors
Short-term rentals (Airbnb, VRBO, Booking.com) typically generate 30-100% more income than long-term rentals—but most banks won’t recognize that income for traditional financing. DSCR loans solve this by qualifying on the property’s actual or projected STR income, not your personal tax returns.
4MG Mortgage works with multiple DSCR lenders that specialize in short-term rental properties—a niche where most local banks fall short.
Three Ways DSCR Lenders Underwrite Airbnb Income
- Actual STR History (T-12): 12 months of trailing rental income from Airbnb/VRBO statements. Best pricing if available.
- AirDNA Market Analysis: Third-party report estimating STR income based on comparable properties in the same market. Used when no history exists.
- Long-Term Rent Equivalent: Some lenders only count the long-term rental rate (1007 form), even on STR properties. Lower DSCR but conservative.
Typical Airbnb DSCR Loan Terms
- 20-25% down payment
- 620+ FICO (700+ for best pricing)
- STR income haircut: 75-85% of gross (accounts for vacancy and seasonality)
- Closeable in LLC name
- Non-warrantable condos eligible (Miami Beach, Keys, Orlando)
- 30-year fixed and ARM options
- Cash-out refinance up to 75% LTV
STR Income Math: Why Airbnb Investors Win
Example: A $500,000 Orlando vacation home with $3,500/month long-term rent vs $7,000/month STR gross. With 80% STR haircut, DSCR underwriting income = $5,600/month vs $3,500/month. The STR scenario qualifies for higher loan amounts and better pricing.
Top STR Markets We Finance
4MG handles Airbnb DSCR loans nationwide, with deep expertise in:
- Florida: Orlando/Kissimmee (theme parks), Miami Beach + Brickell (urban), Florida Keys (coastal), Tampa/Clearwater (beach)
- Texas: Austin (festivals/business), Galveston (beach), San Antonio (River Walk)
- Colorado: Breckenridge, Vail, Aspen, Denver (ski + urban)
- Tennessee: Gatlinburg, Pigeon Forge, Nashville
- Arizona: Scottsdale, Sedona
Airbnb DSCR FAQs
Can I use Airbnb income to qualify for a DSCR loan?
Yes. Many DSCR lenders accept short-term rental income from Airbnb, VRBO, and Booking.com using either actual STR history (T-12 statements) or a market analysis report (AirDNA). Some blend market rent and STR projections.
Do I need a track record of Airbnb income?
Not always. Lenders fall into three groups: (1) require 12 months of T-12 STR history, (2) accept AirDNA market analysis if no history exists, (3) require a hybrid blend. New investors can typically use AirDNA reports.
What DSCR ratio do Airbnb properties typically achieve?
STR properties often achieve 1.4-2.0+ DSCR ratios because gross rents typically exceed long-term rent equivalents by 30-100%. However, lenders haircut STR income (often 75-85%) to account for vacancy and seasonality.
Are Airbnb DSCR loans available for non-warrantable condos?
Yes. Many condo buildings allow STR rentals—these are often non-warrantable for conventional financing but eligible for portfolio/Non-QM DSCR programs. Common in Miami Beach, Brickell, the Keys, and Orlando vacation markets.
Finance Your Next Airbnb Investment
Get pre-approved for a short-term rental DSCR loan in 24 hours.