Introduction: Turn Your Airbnb into an Investment Powerhouse
Short-term rentals (STRs) are booming across the U.S.—from mountain cabins to city condos to beachfront escapes. But while the income potential is sky-high, financing these properties isn’t always easy with traditional loans.
That’s where DSCR loans (Debt Service Coverage Ratio loans) come in.
DSCR loans for short-term rentals allow you to qualify for financing using the property's projected or actual income—not your W2s, tax returns, or job status. Whether you're buying a turnkey Airbnb or refinancing an STR under your LLC, this financing tool is built for investors like you.
What Is a DSCR Loan? Quick Overview for STR Investors
A DSCR loan is an investment property mortgage that qualifies you based on the income generated by the property, not your personal income.
DSCR Formula:
DSCR = Monthly Income / Monthly PITIA
(PITIA = Principal, Interest, Taxes, Insurance, HOA)
- A DSCR of 1.0 means the property breaks even
