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Short-term rentals

Short-term rental loans

Short-term rentals can earn more than a traditional lease, but income swings with seasons and reviews. Some wholesale lenders have DSCR programs built for that reality, and we know how to present the numbers.

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Who this is good for

  • Investors buying a property to run as a nightly or weekly rental
  • Owners converting a long-term rental into a short-term rental
  • Hosts who already have booking history and want to refinance

Investment property only

This is a business-purpose loan for non-owner-occupied investment property. You cannot live in the property. GoDSCR is a mortgage broker: we arrange and shop financing from wholesale lenders, and every loan is subject to the lender's underwriting and approval.

How it works

  1. Check local rules first

    Many cities and HOAs restrict short-term rentals. Confirm the property can legally be rented short-term before you go any further.

  2. Figure out how income will be measured

    Lenders may use a market rent estimate, a short-term rental income analysis, or your actual booking history. Each one can produce a different DSCR.

  3. Budget for real costs

    Cleaning, furnishing, supplies, platform fees and higher insurance all come out of short-term income. Keep them in your own numbers.

  4. We match the program

    We shop wholesale lenders that are comfortable with short-term rentals and explain how each one will treat your income.

What to expect

  • Questions about local short-term rental permits and HOA rules
  • An appraisal and possibly a separate short-term rental income analysis
  • Booking history and statements, if you are refinancing an existing short-term rental
  • Insurance that specifically covers short-term rental use

Watch-outs

  • Do not use your best month as the yearly average. Seasonality is real.
  • A short-term rental is still an investment property. If you plan to use it as a personal vacation home, it does not fit a business-purpose loan.
  • Rules change. A city can tighten short-term rental limits after you buy, so have a backup plan like a long-term lease.

Questions about short-term rental loans

Can I use projected short-term income on a purchase?

Some programs allow a projection from a third-party rental analysis; others only use long-term market rent. We will tell you which approach each lender uses.

Can I stay in my short-term rental sometimes?

Business-purpose DSCR loans are for non-owner-occupied investment property. If personal use is part of your plan, this loan type is not a fit and we will tell you so up front.

Is a short-term rental a good first investment?

It can be, but it is closer to running a small hospitality business. Many beginners start with a long-term rental to learn the basics first.

Other ways we can help

First rental purchase loans

Buy rental #1 (or #2, #3...) using the rent the property can earn to help you qualify.

DSCR cash-out refinance

Tap the equity in a rental you already own and put it toward the next one.

DSCR rate-and-term refinance

Swap your current rental loan for one with a better payment, term or structure, with no cash out.

2-4 unit rental loans

Duplexes, triplexes and fourplexes: several rents under one roof and one loan.

Ready to line up rental #1 (or #2)?

Tell us about the property. We will shop wholesale lenders for a business-purpose DSCR loan and walk you through every step in plain English.

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