DSCR Loan for Airbnb: How Short-Term Rentals Qualify

Unlike traditional rentals where income is stable (one tenant, one lease), Airbnb income fluctuates monthly and seasonally. Lenders address this by averaging 12-24 months of actual booking history and applying a 25% haircut (discount). If your Airbnb generated $24,000/year gross over 24 months, they use $18,000 (75% of actual) for DSCR calculation. This conservative approach protects the lender against booking drops, poor reviews, or economic downturns affecting travel. If you're a new STR host with no history, some lenders use comparable property management company data from your market. LYNK Mortgage evaluates market-rate STR performance in your area to bootstrap your income if you lack history.

Prepare Airbnb/VRBO statements showing last 12-24 months of occupancy, nightly rates, gross revenue, and Airbnb's fees. A property management company's income statement is acceptable if you hire someone to manage the listing. Lease agreements (if you offer monthly discounts) must be provided. Some lenders also request occupancy rate and average daily rate (ADR) trends to assess whether income is growing, stable, or declining. Bank deposits tied to your Airbnb account prove funds were actually received. Tax returns showing Schedule C STR income help corroborate reported figures, though DSCR doesn't require them for qualification.

STR DSCR loans typically cap at 70-75% LTV (25-30% down) versus 80% LTV for traditional rentals. If you're buying a $400,000 Airbnb property, expect to put 25-30% down ($100,000-$120,000) versus 20% on a traditional rental. This higher equity cushion compensates for volatile income. Experienced STR operators with 3+ years of strong, growing occupancy may negotiate 80% LTV, but it's not standard. LYNK Mortgage evaluates your STR portfolio and experience; if you've successfully managed multiple properties, terms improve.

If you offer a hybrid model (long-term lease with month-to-month Airbnb gap coverage), lenders want separate documentation. A $2,000/month lease shows as stable long-term income; Airbnb bookings for remaining days are averaged conservatively. Seasonal rentals (ski condos, beach properties) with predictable peak/off-seasons are acceptable if you can show 24 months of history proving seasonal patterns. Properties in areas with strict STR bans may not qualify for DSCR; LYNK Mortgage reviews local regulations before approval.