A short-term rental loan is usually a DSCR loan that qualifies on the property's rental income. Depending on the program, that income can come from booking history, an appraiser's STR analysis, or market data. No tax returns or W-2s on most programs, and title can often be held in your LLC. Many programs commonly require 20–25% down.
How lenders count Airbnb and VRBO income
| Method | Best for | What's needed |
|---|---|---|
| Booking history | Existing rentals (refinance) | Commonly 12 months of platform statements |
| Appraiser STR analysis | Purchases and newer rentals | Appraisal with short-term rental income addendum |
| Market data (e.g., AirDNA) | Purchases in established markets | Third-party projection accepted by the program |
| Long-term lease rent | Conservative fallback | Market rent schedule (Form 1007) |
Accepted methods vary by program and are subject to underwriting.
Illustrative ratio example
Illustrative only — not a quote.
- Gross annual bookings: $84,000 → after a program haircut, qualifying income ≈ $5,250/month
- Principal & interest, taxes, insurance, HOA: ≈ $4,200/month
- DSCR ≈ 5,250 ÷ 4,200 = 1.25
Coastal insurance, flood coverage and HOA dues can swing the ratio, so get quotes early. Run your own numbers with the DSCR calculator.
Where Mike finances vacation rentals
Florida's beach and resort markets are a focus — Destin, 30A, Panama City Beach, Pensacola, Orlando near the parks, and Tampa Bay — with DSCR financing available across Clear Rate Mortgage's licensed states. Check local short-term rental rules, HOA and condo restrictions before you buy.
Purchase or cash-out refinance
Buying your first or next Airbnb? Qualify on projected rental income. Already own a performing rental? A DSCR cash-out refinance can pull equity to fund the next one — see the Florida cash-out refinance guide and DSCR loan rates.
Frequently asked
What is a short-term rental (Airbnb) loan?
It is an investment-property mortgage, usually a DSCR loan, that qualifies on the property's rental income rather than your personal income. Some programs allow projected or actual short-term rental income from platforms like Airbnb and VRBO, subject to guidelines.
How is short-term rental income calculated for a DSCR loan?
Depending on the program, lenders may use 12 months of booking history, an appraiser's short-term rental analysis, or third-party market data such as AirDNA. Many apply a haircut to gross bookings to account for vacancy and expenses.
Do I need tax returns or W-2s for an Airbnb loan?
Not on most DSCR programs. Qualification is based on the property's rent compared to its monthly payment, plus credit, reserves and down payment.
How much down payment do I need for a short-term rental loan?
Many DSCR programs commonly require 20–25% down on a purchase, and some short-term rental scenarios require more. Exact requirements depend on credit, ratio and property type.
Can I finance a condo or condotel used as a vacation rental?
Some programs allow warrantable and certain non-warrantable condos used as short-term rentals; condotels have more limited options. Condo association rules on rentals also matter.
Can I close in an LLC?
Often yes on DSCR loans, subject to program guidelines.
Do you only do short-term rental loans in Florida?
No. Florida beach and resort markets are a focus, but DSCR financing is available across Clear Rate Mortgage's licensed states, subject to program availability.
Market guides
Educational content only — not a commitment to lend or an offer of credit. Income methods, down payment, ratios and program guidelines are subject to underwriting approval and change without notice. Investment-property loans only. Not tax or legal advice.