Short-term rental income can be strong, but it is seasonal and depends on local rules, so lenders underwrite it conservatively. The fastest approvals come with clean documentation: booking history or a supportable projection, a realistic expense model, proof the STR is legal at the address, and a backup plan if it had to become a long-term rental.
Two ways to finance a short-term rental
| DSCR loan | Bridge / rehab loan | |
|---|---|---|
| Use | Buy or refinance a rentable STR and hold it | Buy and renovate or furnish before it earns |
| Qualifies on | Property income; no personal income documents | The property, the budget and the exit |
| Term | 30-year fixed or adjustable | Short-term, interest-only |
| Leverage | Set by DSCR, credit and property | Up to 90% of purchase + 100% of rehab (max 75% of ARV); bridge up to 75% of value |
Compare every option — including conventional and second-home loans — in short-term rental financing options, and see how lenders count STR income in DSCR loans for short-term rentals.
What we review on an STR
- Trailing booking revenue or a market-data projection, and long-term market rent as a fallback.
- Expenses: cleaning, platform fees, utilities, supplies, management, occupancy taxes, insurance.
- Local permit or license status and HOA rules.
- Condition and furnishing plan.
Run the numbers with the DSCR calculator, then send the deal for a term sheet within 24 hours on most requests. Related: DSCR loans, rehab-to-rent loans.
Frequently asked questions
Can I get a DSCR loan on a short-term rental?
Often, yes. We may use booking history, a market projection or long-term market rent from the appraisal, and we confirm the property can legally operate as a short-term rental.
What if the property needs work before it can be rented?
Use a fix and flip or rehab-to-rent loan — up to 90% of the purchase and 100% of the rehab, capped at 75% of ARV — then refinance into a DSCR loan once it's earning.
Do you check local short-term rental rules?
Yes. Permit or license status, zoning, HOA rules and any primary-residence requirement affect whether the income can be counted.
Can I finance in an LLC?
Yes. All of our loans are business-purpose and commonly close in an LLC.
Updated by the Ambition Lending credit team.
