Short Term Rental Financing: How to Get a Loan for Your Airbnb or VRBO Property

Short term rentals have become one of the most popular real estate investment strategies over the past decade. But financing a property you intend to rent on Airbnb or VRBO comes with its own set of rules and considerations.

Can You Get a DSCR Loan for a Short Term Rental?

Yes — and it's one of the best loan options for short term rental investors. Many DSCR lenders now accept short term rental income as qualifying income. Instead of using a traditional lease, they use market rent data from services like AirDNA to estimate the property's income potential.

How Lenders Calculate Short Term Rental Income

Some lenders use a percentage of the gross projected short term rental income — typically 70-75% to account for vacancies and platform fees. Others use the long term market rent from an appraisal as a conservative baseline. The more established your rental history, the better your qualifying income will look.

What Markets Work Best?

Lenders pay close attention to the market when evaluating short term rental loans. High tourism markets, vacation destinations, and urban areas with strong demand tend to get better terms. Some lenders restrict short term rental loans in certain markets so it's important to work with a lender who has experience in this space.

Key Considerations Before You Buy

Check local regulations — many cities and HOAs have restrictions or outright bans on short term rentals. Understand the seasonality of your market and how it affects your income projections. Factor in management costs, platform fees, and higher turnover maintenance costs when analyzing your returns.

How Jordan Lev Mortgage Can Help

We work with short term rental investors nationwide and have access to lenders who understand the Airbnb and VRBO investment model. Whether you're buying your first vacation rental or expanding an existing portfolio, we'll find the right financing. Submit your deal at jlwmtg.com or call 717-586-5144.