Dear Investors,
Looking to start, expand your refinance your short term rental real estate portfolio? Banks don’t care about SuperHost Status...They care about risk.
While a specific ‘Airbnb Mortgage Loan’ product doesn’t technically exist in the traditional banking world, a suite of STR (Short-Term Rental) loans can get you the keys. Here’s how to finance AIRBNB’s & STRs:
🧐 Things to Consider:
The main drawback of DSCR loans in comparison to conventional loans is that since the qualifying documentation is reduced, the lender views it as more risky and as a result most DSCR mortgages will include a higher interest rate and early payoff penalty of 1-3 years. Borrowers do have the option to ‘buy out’ of these penalties but be sure to ask your lender of the various options. Typically there is not much variation between a 2-3 year PPP.
STR investors are notorious for casting a wide prospective search across many markets or states. Be sure that the lender you’re working with can perform in multiple states and that the terms are similar as your cross borders. Many banks are very specific on the areas they lend in and not all brokers can provide services in all states.
If you are refinancing and closed fairly recently - ask about a title reissue rate..it could save you hundreds to thousands depending on location.
To qualify for DSCR financing most lenders want to see real estate experience. That is at least one property owned (within the past few years) and sometimes even - one investment property owned.
If you are not utilizing a conventional mortgage - Be certain to inquire HOW THE STR Income is qualified? Will the lender utilize a AIRDNA report? Actual income - if so what documents are required, and do they use a proportion of the income or have a minimum ratio? These are the ‘got ya’s’ that seem like they are not important since DSCR lenders use ‘property income’ but there is much more to the guideline story..a strong STR mortgage broker is familiar with these questions and knows what to look out for.
💡The Top 5 STR Financing Strategies
The Pro Move: DSCR Loans
If you want to grow a portfolio, Debt Service Coverage Ratio (DSCR) loans are the gold standard.
The Vibe: The lender looks at the property’s projected income, not your personal paycheck.
The Catch: Expect higher interest rates and a requirement that the rental income "covers" the mortgage (usually by .75-1.2x) depending on down payment percentage.
The Standard: Conventional Mortgages
The majority of our clients are ‘full income verification’ or conventional/prime mortgages. A little known fact is that for investment properties lenders will allow you to utilize a rent schedule from an appraisal to help off-set the debt obligation. Often - even if not utilizing the full projected or actual short term rental income, borrower can qualify with the projected long term rental income.
Requirements: A 620+ credit score and a 15–25% down payment.
The Reality: These follow Fannie Mae/Freddie Mac rules. In 2026, conforming loan limits are roughly $800k+ in most areas. If you go higher, you’re in Jumbo territory.
The Equity Play: Cash-Out Refi or HELOC
Got a "boring" primary residence with massive equity? Use it.
Cash-Out Refi: Replace your current mortgage with a bigger one and take the difference in cash for your STR down payment.
HELOC: A revolving line of credit. It’s great because you only pay interest on what you spend, making it perfect for those "fixer-upper" Airbnbs.
The "House Hack": Multi-Unit FHA/VA Loans
Buy a duplex, live in one side, and Airbnb the other.
The Perk: You get primary residence interest rates and down payments as low as 0–3.5%.
The Catch: You actually have to live there for at least a year. No "ghosting" the lender.
Portfolio & "YOURgage" Options
For the rebels. Portfolio lenders keep loans on their own books, meaning they make their own rules. If your DTI (Debt-to-Income) is messy but your business plan is solid, this is your lane.
☑️ 3 Tips to Land the Loan
Don’t Go Solo: Partner with someone who has a additional verifiable income and/or property management experience.
Over-Prepare Your "AirDNA": Show up with data. Prove the occupancy rates and nightly averages in your specific zip code. We can often provide these in advance and for no cost!*
The 20% Rule: While some loans allow 15% down, 20–25% is the "magic number" that lowers your rate and ratio and provides more product options.
⏳ Ready to shop for an STR Loan?
The market moves fast, and so do interest rates. Whether you are looking for a beach condo or a mountain yurt, getting pre-approved for an investment property mortgage is step one.
🤝Our strategic Lending Parter
With 20+ years in the mortgage industry under my belt there isn’t too much in the space that can surprise or impress me. One group that has and who I currently hang my license with is Loan Factory.
Truly tech forward company that both I and my referred clients have all had an exceptional experience with. Since I don’t work ‘both sides’ of any real estate + mortgage transactions - I refer my AIRBNB and STR investors to the first person I recruited into the industry 2004 - Mr. Chiofalo with Loan Factory.
🎯 What We Like
Accurate mortgage pricing tool that does not require a credit check (provided the inputs are accurate so are the terms displayed).
Self Revise Pre Quals. In the STR business there are often pressures that do not accompany standard real estate transactions. I like the ability to adjust Pre Quals on the fly without a request from the mortgage broker.
LOTS of lenders that provide rock bottom rates. There has not been a loan scenario referred that was not doable or highly competitive. In most instances that my investors shop, they come back to Loan Factory because the terms were that much stronger. Also if there is a quirky requirement (like closing in or transferring to an LLC) they’ve found a home for the loan.
Convenience and transparency. The platform itself is very user friendly and the teams behind the scenes are nothing short of outstanding. My clients know where they are in the process and what they need to provide and each has received the terms promised at inception.
For a quick quote or to schedule a AIRBNB Mortgage consultation to qualify or compare terms visit us below!
⬇️ Some of the AIRBNB, STR & DSCR Loan Programs we offer:
NON-QM (Alternative income & asset verification) Spotlight: Asset Depletion & DSCR
Fixed Second Lien Programs up to $500K (Primary, Second, Investment)
JUMBO ARM Specials
Weekly Program & Rate Highlights
👏🏼 With 40+ years of combined lending experience and the power of our 240+ Lenders - we dare you to compare!
📌IMPORTANT MORTGAGE NEWS: 2026 CONFORMING LOAN LIMITS INCREASE!
📊 MORTGAGE PROGRAMS
💰Asset Depletion Qualification Loans
Did you know that you don’t have to sell your portfolio or assets to utilize them to qualify? Instead - borrowers can use their money market or retirement account funds as ‘income’ to qualify. Here’s how: Multiply the proposed payment by two-ish (40% DTI) then take 70% of the value of the portfolio and divide it by 60-84 months. If the balance is sufficient to cover the ‘proposed’ payment, high-asset borrowers can qualify for near conventional loan rates (MUCH BETTER THAN DSCR!)
🥈Closed-End Second Liens are the perfect way to turn built-up equity into opportunity—whether your clients need funds for home improvements, debt consolidation, or new investments.
Credit Score down to 680
Max LTV Up to 90%
Max Loan Amount $750,000
Max Loan Amount up to $350,000 on DSCR
Max Combined Loan Amount $3.5 million
Full Doc, Bank Statements, P&L, WVOE and DSCR
Primary, Second Homes or Investments
Loans up to $750,000 with a minimum of $150,000
Cash-out or rate-term refinance
Owner-occupied, second homes, and investment properties
12 or 24 months’ business bank statementsFull doc (2 years’ tax returns and YTD P&L, or 2 years W-2’s with YTD pay stubs for non-self-employed)
Rates are 30-year fixed, 20-year fixed, 15-year, or 10-year fixed
Up to 50% DTI, depending on LTV
On 1-Unit SFR with a loan amount of $250,000 or less, 2055 exterior appraisal with AVM can be utilized in lieu of full appraisal. AVM must have a high or medium confidence score.
Why Investors Love It💚
• Keeps the first mortgage intact — no need to refinance
• Fixed-rate stability and predictable payments
• Loan amounts up to $500,000
• Available for primary, second homes, and investment properties
• Fast approvals with common-sense underwriting
🏦First Lien HELOC Example Program
Amount:
· Up to $750,000
Loan Purpose:
· Purchase Money, Rate and Term Refinances and Cash Out Refinances
Minimum Draw:
· $100,000
Appraisal Requirement:
· Full URAR Appraisal is required
🧮 Example No-Ratio Program - Primary & 2nd Homes - When income docs don’t work, we do. This loan requires:
No Income or DTI Requirements
Up to $2.5M Loan Amount ($3M with exception)
80% Max LTV for Purchase/Rate-Term
75% Max LTV for Cash-Out
No Cash-Out Seasoning
620 Min FICO
100% Gift Funds Allowed (for down payment & closing costs)
💡Example DSCR Loan Programs (Debt-Service-Coverage-Ratio)
No Seasoning on Cash-Out Refinances: Unlock equity immediately.
No Current Appraised Value Seasoning: Just renovated? We use the most recent appraisal.
No Chain of Title Seasoning: Need to add a new borrower to title? No problem!
Vacant Properties - we lend on vacant properties.
Recently Listed Properties - off MLS by closing.
Fair Market Rent or Current Rent - use whichever is Greater!
Weekly Rate & Program Highlights
🐘 JUMBO ARM rates are reaching enticing levels with one of our premier jumbo lenders. Intended for prime conventional borrower of primary and secondary residences.
Working on a luxury purchase that requires additional buyer incentives and elite attentive client care? Call Joseph 24/7/365 @ 954-480-7478
🚒 Seller Concessions are HOT: Did you know that on second home loans the maximum seller paid concession with as little as 10% down is 6% of the sales price!?
Below is a Seller Concession Cheat Sheet:
🧑🏼🎤Pro Realtor & Investor Concierge: Are you a Realtor closing 10+ Deals annually or an individual investor with more than 3+ properties owned? Ask about our repeat client and portfolio programs that centralize operations. Book your 15 minute Private Mortgage Consultation here.
Call, text or email us anytime,
Joseph Chiofalo | Loan Factory | Licensed NMLS Mortgage Broker
📲954-480-7478 📧 [email protected] | LIVE QUOTES ☑️
Anthony AJ Wong | Loan Factory | Licensed NMLS Mortgage & Licensed OR + CA Real Estate Broker - Sesemi STR Brokers Powered by Fathom Realty
📲541-800-0455 📧 [email protected] | Shop OR STRs🌲