| Lender Type | Min DSCR | Min Credit | Down Payment | Get Quote |
|---|---|---|---|---|
| Truss Financial Group Best DSCR lender for Airbnb — counts STR income at market rate | 1.0 | 640+ | 20% | Quote → |
| No-Ratio DSCR Lenders Best for properties with DSCR below 1.0 (high mortgage payment) | 0.75 | 660+ | 25–30% | Quote → |
| Institutional DSCR Lenders Best rates for established STR with 12+ months rental history | 1.25 | 680+ | 20% | Quote → |
| Portfolio STR Lenders Best for unique STR properties: cabins, treehouses, glamping | 1.0 | 640+ | 20–25% | Quote → |
| Cash-Out DSCR Refinance Best if you already own Airbnb properties — extract equity to buy more | 1.0 | 640+ | N/A (refi) | Quote → |
Best DSCR Lenders for Airbnb & Short-Term Rentals 2026
Short-term rental investors are the highest-paying mortgage borrowers — and the most underserved. DSCR loans let you qualify on Airbnb income alone. No W-2. No tax returns. Just prove the rent covers the mortgage. Get a DSCR quote using your projected Airbnb income in 60 seconds.
How DSCR Loans Work for Airbnb Properties
DSCR Formula for Short-Term Rentals:
DSCR = Monthly STR Income ÷ Monthly PITIA
PITIA = Principal + Interest + Taxes + Insurance + HOA
1.25+
Strong — best rates, most lenders
1.00–1.24
Acceptable — most DSCR lenders
<1.00
No-ratio program — 25–30% down needed
Example: Airbnb cabin in Gatlinburg, TN
- 📊 AirDNA projected monthly STR income: $5,200
- 🏠 Purchase price: $450,000 | Down payment: $90,000 (20%)
- 💰 Monthly mortgage (P&I at 7.5%): $2,517
- 🏡 Taxes + Insurance + HOA: $750/month
- 📐 PITIA total: $3,267/month
- ✅ DSCR = $5,200 ÷ $3,267 = 1.59 — Excellent
Truss Financial Group
Best DSCR lender for Airbnb — counts STR income at market rate
Min DSCR
1.0
Min Credit
640+
Down Payment
20%
Rate Range
7.25–8.50%
✅ Pros
- ✅ STR income counted using AirDNA projections
- ✅ No tax returns or W-2 required
- ✅ Close in 21 days
- ✅ 640+ credit with 20% down
- ✅ Scale to 10+ properties
⚠️ Cons
- ⚠️ Investment properties only
- ⚠️ 20% minimum down payment
- ⚠️ No primary residence
No-Ratio DSCR Lenders
Best for properties with DSCR below 1.0 (high mortgage payment)
Min DSCR
0.75
Min Credit
660+
Down Payment
25–30%
Rate Range
7.75–9.00%
✅ Pros
- ✅ DSCR below 1.0 accepted
- ✅ Seasonal STR income counted
- ✅ No income documents needed at all
- ✅ New STR purchases with no rental history
⚠️ Cons
- ⚠️ 25–30% down required
- ⚠️ Higher rates
- ⚠️ Must have strong credit (680+)
Institutional DSCR Lenders
Best rates for established STR with 12+ months rental history
Min DSCR
1.25
Min Credit
680+
Down Payment
20%
Rate Range
7.00–7.75%
✅ Pros
- ✅ Lowest DSCR rates for STR
- ✅ Actual Airbnb income statements used
- ✅ 30-year fixed available
- ✅ Blanket loan for multiple STR properties
⚠️ Cons
- ⚠️ Need 12 months STR history
- ⚠️ 1.25 DSCR minimum
- ⚠️ 680+ credit for best rates
Portfolio STR Lenders
Best for unique STR properties: cabins, treehouses, glamping
Min DSCR
1.0
Min Credit
640+
Down Payment
20–25%
Rate Range
7.50–9.50%
✅ Pros
- ✅ Unique property types accepted
- ✅ Cabins, lake homes, vacation props
- ✅ AirDNA or VRBO income projections used
- ✅ Self-managed or managed by PM equally valid
⚠️ Cons
- ⚠️ Higher rates for unusual properties
- ⚠️ Slower process (30–45 days)
- ⚠️ More documentation for unique properties
Cash-Out DSCR Refinance
Best if you already own Airbnb properties — extract equity to buy more
Min DSCR
1.0
Min Credit
640+
Down Payment
N/A (refi)
Rate Range
7.25–8.25%
✅ Pros
- ✅ Cash-out up to 75–80% LTV on existing STR
- ✅ Use Airbnb cash flow to qualify
- ✅ Fund next property down payment
- ✅ No tax returns for qualification
⚠️ Cons
- ⚠️ Must have 20%+ equity in existing property
- ⚠️ 6-month seasoning often required
- ⚠️ Rate slightly higher than purchase DSCR
Ready to Finance Your Next Airbnb? Get a DSCR Quote in 60 Seconds.
No W-2. No tax returns. Just your target property, projected STR income, and 20% down. Get matched with the best DSCR lender for your Airbnb deal — they'll count your AirDNA-projected income, not your W-2.
Get My DSCR / STR Loan Quote →How to Pick the Right Airbnb Market for DSCR Qualification
The property's DSCR ratio depends entirely on the local STR market. Choosing the right market can be the difference between DSCR of 0.80 (rejected) and 1.50 (easily approved). Here are the 5 metrics DSCR lenders and investors use to evaluate STR markets:
| Market | Avg Daily Rate | Avg Occupancy | Avg Monthly Revenue | DSCR Potential |
|---|---|---|---|---|
| Gatlinburg, TN (cabins) | $285/night | 72% | $6,156/mo | Excellent (1.5+) |
| Scottsdale, AZ (luxury) | $320/night | 67% | $6,432/mo | Strong (1.3+) |
| Joshua Tree, CA (unique) | $250/night | 70% | $5,250/mo | Good (1.2+) |
| Nashville, TN (downtown) | $195/night | 65% | $3,802/mo | Moderate (1.0+) |
| NYC/LA (restricted zones) | $180/night | 45%* | $2,430/mo* | High risk (< 1.0) |
*NYC/LA have severe STR restrictions. Always verify local STR regulations before buying. DSCR lenders may require proof of compliance. Get a DSCR pre-approval for your target market to verify your deal qualifies before making an offer.
How DSCR Lenders Verify Airbnb Income: The AirDNA Method
The biggest question STR investors have: what income does the lender actually count? Most DSCR lenders use one of two methods depending on whether you have an operating Airbnb or are buying a new property:
📈 Method 1: AirDNA / Market Data (New Purchase)
- • Lender orders AirDNA report for the specific address
- • AirDNA shows projected occupancy % and average daily rate
- • Lender applies 75–80% occupancy rate to be conservative
- • Result: Projected monthly gross STR income
- • This income is used for DSCR calculation
📃 Method 2: Actual Airbnb Statements (Existing STR)
- • 12 months of Airbnb payout statements
- • Lender calculates actual monthly average
- • Seasonal properties may be annualized
- • Payout history downloadable from Airbnb account
- • Most favorable for well-performing properties
💡 Pro tip: If you're buying in a new market, share the AirDNA data with your lender early in the process. Lenders who are experienced with STR DSCR loans know how to use this data efficiently — they'll tell you within 24 hours if the deal clears their DSCR minimum.
Scaling from 1 to 10+ Airbnb Properties with DSCR Loans
The biggest advantage of DSCR loans over conventional financing is scalability. With conventional loans, you're capped at 10 financed properties. With DSCR, there's no Fannie Mae limit — you can build a portfolio of 20, 50, or 100+ STR properties as long as each property's cash flow supports its mortgage:
Individual DSCR loans (standard)
Cash-out DSCR refi on earlier properties
Blanket DSCR loan or portfolio lender
Airbnb DSCR Loan FAQ
Can I use Airbnb income to qualify for a DSCR loan?
Yes — most DSCR lenders that specialize in short-term rentals will count Airbnb income. They typically use: (1) AirDNA or Mashvisor market data to estimate STR income for new purchases, (2) 12 months of Airbnb payout statements for existing properties. Some lenders apply a 75–80% occupancy rate to be conservative. The DSCR must be ≥1.0–1.25: rental income ÷ PITIA (principal + interest + taxes + insurance + HOA).
What DSCR ratio do I need for an Airbnb property?
Most DSCR lenders require a minimum ratio of 1.0–1.25. DSCR = Monthly Rental Income ÷ Monthly PITIA. Example: $4,000 STR income ÷ $3,000 mortgage payment = DSCR of 1.33 (above the 1.25 threshold). Some lenders offer "no-ratio DSCR" programs that allow DSCR below 1.0 with a larger down payment (25–30%). Properties with strong Airbnb track records often achieve DSCR of 1.5–2.5.
Do DSCR lenders require STR permits or licenses?
It depends on the lender and market. Some DSCR lenders require proof of local STR permits before closing. Others lend regardless. The bigger issue is zoning — some cities have restricted or banned short-term rentals (NYC, Santa Monica, etc.). Lenders in these markets may require a declaration that the property is in a compliant zone. Always verify your city's STR regulations before applying.
What is the minimum down payment for a DSCR Airbnb loan?
DSCR loans for short-term rentals typically require 20–25% down payment. With 20% down and 680+ credit score, you get the best rates. Some lenders offer 15% down for DSCR ≥1.25. No-ratio DSCR programs (below DSCR 1.0) usually require 30% down. Unlike FHA or conventional, DSCR loans cannot be used for primary residences — they are investment property only.
Can I get a DSCR loan for a vacation home I also use personally?
This is a gray area. DSCR loans are classified as investment loans — they require the property to generate rental income and are not for primary residences. If you use the property more than 14 days per year for personal use (or 10% of rental days), IRS classifies it as a vacation home, which affects what expenses you can deduct. Some DSCR lenders will lend on mixed-use vacation homes if rental income is primary. Disclose your personal use plans with your lender before applying.
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Meet Emily
Construction & Commercial Loans Expert
Emily Chen specializes in complex financing solutions for construction projects and commercial real estate investments. With 8 years of experience in construction-to-permanent loans and DSCR financing, she has funded over $200 million in construction and investment property projects. Her expertise in navigating construction loan complexities and commercial underwriting makes her invaluable for real estate investors and builders.
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Funded $200M+ in construction projects