Does a DSCR loan require a lease?

Not for a short-term rental. Lenders use the appraisal's long-term market rent, a history of platform income, or a third-party projection instead. A lease is only needed when the property is rented on one.

Can I stay in the property myself part of the year?

We finance investment property only, so the property needs to operate as a business rather than as a second home you also use. If you're planning personal use, talk to a loan officer before you apply.

What if the city doesn't allow short-term rentals?

Then the property has to qualify on the long-term market rent, like any other rental. If that rent doesn't cover the payment, the loan won't work as planned, so check the rules before you make an offer.

Do you fund vacation rentals outside big cities?

Yes. We lend across the US, including beach, lake and mountain markets. The same checks apply: local rules, and income that covers the payment.

DSCR guide

DSCR Loans for Airbnb and Short-Term Rentals

Short-term rentals can out-earn a long-term lease, but the income is lumpier and lenders look at it differently. Here's how a DSCR loan works for an Airbnb or vacation rental, and what we fund.

By Joseph Snado · Published October 10, 2026

Can you use a DSCR loan for an Airbnb?

Yes, you can use a DSCR loan for an Airbnb. We fund every type of investment property, and that includes short-term rentals listed on Airbnb, Vrbo or similar platforms, as well as vacation rentals you manage yourself. The property is treated the same way as any rental: it has to be an investment, not a home you live in, and its income has to cover its payment.

One check comes before the loan. Short-term rentals are regulated locally, and some cities restrict or license them. New York City is one of the strictest. Make sure the property can legally operate as a short-term rental where it sits, because a lender can't count income the property isn't allowed to earn.

How lenders count short-term rental income

Short-term rental income swings with the season, so lenders don't simply take last month's bookings. There are three common approaches, and lenders use one or a mix of them:

The long-term market rent from the appraisal: what the property would rent for on a standard lease. This is the most conservative figure and the most widely used.
A documented history of short-term income, usually 12 months of platform statements, often with a discount applied to allow for slow months.
A third-party projection of short-term income for that property and market, which some lenders accept when there's no history yet.

Which approach applies to your deal depends on the property and your file. A loan officer walks through it with you on a short call before you order an appraisal.

Does the income cover the payment?

Here's the check in dollars. Say the full monthly payment on a property, with taxes and insurance, is $2,400. As a long-term rental it would bring in $2,600, so the rent covers the payment with $200 to spare and the loan works on the conservative figure alone.

As a short-term rental the same property might earn $6,000 a month in summer and $2,000 in winter, averaging about $4,000 over the year. On average that covers the payment with about $1,600 to spare, but the winter months fall $400 short. That's why experienced short-term rental investors hold cash reserves for the slow season, and why it's wise to make sure the long-term rent could carry the property on its own.

Run the numbers in the DSCR calculator

What you need to qualify

The core requirements are the same as for any DSCR loan:

An investment property you don't live in. We lend up to 80% of its value, so plan on at least 20% down.
A minimum 620 credit score.
Income that covers the full monthly payment, counted one of the ways above.
The usual short document list, with no tax returns or pay stubs.

For a short-term rental, also have ready any permit or registration the city requires, your platform statements if the property already operates, and an insurance quote for short-term rental coverage, which differs from a standard landlord policy.

Before you buy a short-term rental

A few habits separate the short-term rentals that work from the ones that don't:

Check the local rules first, including licensing, caps on nights, and whether the building or HOA allows short-term stays.
Underwrite on the long-term rent as your floor. If the property works as a normal rental, the short-term upside is a bonus rather than a lifeline.
Budget for furnishing, cleaning, platform fees, management and higher vacancy. The gross number is not what you keep.
Keep reserves for the off-season and for a slow first few months while reviews build up.

FAQ

Questions, answered

Yes. We fund short-term rentals as investment property. The property must be legal to operate as a short-term rental, and its income has to cover the full monthly payment.

Ready to fund your next deal?

Tell us about the property and we will come back to you with options — usually within 24 to 48 hours.

Apply Now +1 (347) 680-6800