Which programs allow it?
Not all of them. The ones that do treat a short-term rental as its own case. A DSCR loan for an Airbnb or a vacation-market property rests on nightly income that rises and falls with the season. So lenders ask for more proof and lend a little less against it.
- Several programs count short-term rental income on a purchase and on a refinance. One counts it on a refinance only. At least two do not count it at all.
- On most programs that allow it, the loan is capped at 70% to 75% of the price on a purchase and 70% on a refinance. A couple allow 80% on a purchase with strong credit.
- Several programs simply lower their usual ceiling by 5 percentage points for short-term rentals.
- A minimum ratio of 1.00 applies, with the income counted as described below.
Checked by underwriting, as of November 2026.
How is the rent counted?
This is the heart of it. A long-term rental has a lease and a market rent the appraiser can estimate. A short-term rental has a calendar. Lenders solve that two ways. For a property you are buying, a third-party projection. For one you already run, the actual history.
- On a purchase, some programs accept a projection from a short-term rental data service, or an analysis prepared with the appraisal. Others use the appraiser's long-term market rent instead.
- On a refinance, most programs want 12 months of statements from the rental platform. One wants a 24-month history. The statements must come from the platform, not from you.
- Several programs count the lower of the projection and the history. One counts 75% of the twelve-month average, to allow for vacancy and fees.
- The payment side is the same as any DSCR loan: principal, interest, taxes, insurance and any association dues.
Checked by underwriting, as of November 2026.
The article on what a good DSCR is explains the ratio itself. For a short-term rental, expect the counted income to be lower than your gross bookings. Plan the purchase around that number.
What proof do I need that short-term renting is allowed?
Lenders have learned to ask, because cities change their rules. Expect to show three things. The city permits short-term rentals at that address. Any permit or license is in place or available. And the market supports the use. A building or an association that forbids short-term stays rules the property out as one.
- We ask for proof that the governing body allows short-term rentals at the address, and some programs also want proof the property is listed on a rental site.
- At least one program wants proof of experience managing short-term rentals.
- One program excludes short-term rentals in one large city. One caps these loans at $1.5 million.
Checked by underwriting, as of November 2026.
What else changes compared with a long-term rental?
- The down payment is bigger, because the ceiling is lower. The down payment article shows the long-term bands for comparison.
- Some programs want a higher credit score for the short-term case. Others pair the lower ceiling with a lower score floor. Ask which applies.
- Condo-hotel units count as non-warrantable condos, with their own, lower ceilings.
- A first-time investor is usually limited to long-term rentals, on the programs that allow first-time investors at all.
The requirements article covers everything that does not change: credit, reserves, the appraisal and the business-purpose file.
Can I stay there part of the year?
No. A DSCR loan is a business-purpose loan for a property you will not occupy. That includes a week in the off-season or a family member's stay. You sign a statement about occupancy and purpose, and lenders check it. A vacation home you also rent out is a different loan, qualified on your own income. If you want to use the place yourself, say so before anyone orders an appraisal. We will point you to the right loan.
What if the property is empty right now?
A property with no bookings and no lease is the hardest case. Some programs will not refinance it at all. One allows it only when it was recently renovated or earns short-term rental income, and then caps the refinance lower. On a purchase the projection carries the file. That is why a purchase is often easier than a refinance for a short-term rental.
One program will not refinance an unleased property unless it earns short-term rental income or was recently rehabilitated. In that case the refinance is capped at 70% of the value.
Checked by underwriting, as of November 2026.
The refinance article covers seasoning and the rent test on a refinance.
Sources and important context
Educational content, not an offer, approval or rate quote. The DSCR loans described here are business-purpose loans for rental property you will not live in. Every range describes the programs Lendwise uses on the date shown, never a promise for your file. Calculator results are estimates, not program requirements or pricing tiers.