Get Expert Investment Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Scaling a short-term rental portfolio used to mean battling with banks over W2s, tax returns, and strict income limits. But now, Airbnb hosts have a powerful tool to break through those barriers: DSCR loans.
These investor-friendly loans qualify based on the property’s income potential—not your personal finances. This means you can grow your short-term rental empire faster, even if you’re self-employed or already own multiple properties.
In this guide, we’ll show exactly how Airbnb hosts are using DSCR loans to scale, step by step.
What Is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is a mortgage product designed for real estate investors. Instead of relying on your personal income, the lender evaluates the rental income from the property to determine eligibility.
DSCR Formula:
DSCR = Net Operating Income ÷ Debt Service
A DSCR of 1.25, for example, means the property’s income is 125% of its mortgage payment—well within most lenders’ preferred range.
Why it matters for Airbnb hosts: Traditional lenders often refuse to recognize projected Airbnb income, especially without a long history. DSCR lenders, on the other hand, use AirDNA and market rental data to approve loans based on projected STR income.
Why Airbnb Hosts Love DSCR Loans
No Personal Income Verification
Say goodbye to W2s, pay stubs, or tax returns. DSCR lenders focus on the property’s ability to cash flow.
Scalable for Portfolios
Own five, ten, or twenty properties? No problem. DSCR loans typically don’t cap the number of financed properties, unlike conventional loans.
Perfect for LLC Structures
Want to build under an LLC? Most DSCR loans allow you to borrow under your business entity, simplifying taxes and asset protection.
Real Example: From Side Hustler to Airbnb Portfolio Pro
Take “Alex,” a self-employed photographer in Atlanta. He bought his first Airbnb with a DSCR loan using projected income based on similar listings nearby. Within 18 months, he used DSCR refinances to add three more properties, each under an LLC. Today, Alex manages six profitable STRs—all financed without ever submitting a W2.
Want to scale like Alex?
Get matched with a DSCR lender now.
How to Qualify for a DSCR Loan on an Airbnb
Here’s what most DSCR lenders look for:
- Minimum Credit Score: 640–680+
- Down Payment: Typically 20–25%
- DSCR Threshold: Usually ≥ 1.0 (some go as low as 0.75 with pricing adjustments)
- Income Source: Market rent via appraisal or AirDNA data
- Property Use: Must be 100% non-owner occupied
For Airbnb financing specifically, some lenders may:
- Use AirDNA or historical booking data
- Require 12 months of rental history (others may accept projections)
- Prefer properties in established vacation markets
Want to see if your STR qualifies?
Use our DSCR Calculator to estimate your property’s eligibility instantly.
Pro Tips to Maximize Your Loan Approval
- Use Turnkey Properties: Lenders prefer rent-ready units over heavy rehabs.
- Choose the Right Lender: Not all DSCR lenders accept short-term rental income—look for those that underwrite STRs specifically.
- Structure in an LLC: Doing so protects you legally and opens more flexible lending options.
Need help finding the best-fit lender for your Airbnb strategy?
Submit your scenario here for tailored loan matches.
FAQs: DSCR Loans for Airbnb Hosts
Can I get a DSCR loan for a brand-new Airbnb listing?
Yes—some lenders will use market rent data or tools like AirDNA to project STR income, even without rental history.
Do DSCR loans have prepayment penalties?
Most do. These typically follow a 3–5 year “step-down” schedule (e.g., 5% year 1, 4% year 2). Be sure to ask upfront.
Can I refinance an existing Airbnb into a DSCR loan?
Absolutely. Many hosts use a cash-out DSCR refinance to fund new acquisitions.
Are interest-only payments an option?
Yes, many lenders offer 10-year interest-only options to boost initial cash flow—ideal for high-season STR markets.
Final Thoughts: DSCR Is the Airbnb Host’s Growth Engine
If you’re building an Airbnb portfolio, DSCR loans offer a smart, scalable way to expand without traditional financing red tape. Whether you’re acquiring your second property or your tenth, these loans put the property’s income front and center—just where it belongs.
Ready to unlock your next Airbnb deal?
Start your DSCR loan application now and connect with expert lenders who understand STRs.
Read Next
- DSCR Loans for Short-Term Rental Properties
- How to Qualify for a DSCR Loan Without Traditional Income Verification
- Refinancing with DSCR Loans: Unlocking Equity in Your Investment Properties
- The BRRRR-Friendly Guide to DSCR Loan Refinancing
Get Expert Investment Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
