Airbnb loans: how lenders count short-term rental income.
STR financing lives or dies on one question — does your revenue count in full, or does it take a haircut? Here is how underwriters read Airbnb income, and how to structure the deal either way.
MA
Reviewed by Moh Alloo, Mortgage Loan Originator · NMLS #2732105 · West Capital Lending Updated July 6, 2026
Two kinds of STR files
Lenders split short-term rental deals into two lanes:
Actuals: the property has 12+ months of real hosting history (Airbnb/VRBO payout statements). Documented revenue generally counts in full.
Projections: you are buying the property (or converting it) with no history. Lenders lean on market data — typically an AirDNA-style report — and apply a haircut of roughly 20% to projected gross revenue before running coverage.
That haircut is the single most important number in an STR underwrite. A property projecting $85,000/year is underwritten at ~$68,000 — your deal has to pencil at the discounted figure.
STR coverage math
Most STR loans are DSCR loans with rental income swapped for hosting revenue: (annual revenue ÷ 12) ÷ monthly PITIA, using discounted revenue when projection-based. STR files also carry a small rate add (~0.25%) over long-term-rental DSCR, and expense assumptions run heavier — cleaning, utilities, management, and platform fees are real.
Leverage and terms
Factor
Typical range
Max LTV
75% is the common ceiling; some lenders cap projections-based files at 70%
Credit
660–680 minimums are common; 720+ prices best
Reserves
6 months PITIA is typical — seasonality is real
Entity vesting
Broadly allowed, often preferred
Market rules
Lenders check local STR ordinances and permit regimes
Seasonality and market risk
Underwriters discount thin markets: a ski-town condo earning 70% of its revenue in ten weeks reads riskier than a year-round beach market with the same gross. Permits matter just as much — a city tightening STR rules can turn a 1.3× file into a long-term rental at half the revenue. Have the LTR fallback number in mind before you buy; good lenders will ask.
If you have history, use it
Twelve months of payout statements can be worth half a point of rate and a full leverage notch versus the same property on projections. If you are converting a long-term rental you already own, sometimes the right move is a bridge or HELOC now and the STR refi after four full quarters of hosting.
Price your short-term rental scenario in minutes
Enter projected gross and whether you have 12+ months of hosting history — the haircut and coverage compute live. No documents, no login — live indicative pricing as you answer, then a licensed loan officer reviews your exact scenario.
Can I use projected Airbnb income to qualify for a loan?
Yes, on STR-specific DSCR programs. Lenders use market projection data (AirDNA-style) and typically discount projected gross revenue by about 20% before running the coverage math.
Does real hosting history get better terms?
Materially. Twelve or more months of documented payout history usually counts in full — no haircut — which improves coverage, pricing, and sometimes maximum leverage.
What is the maximum LTV on a short-term rental loan?
Most STR programs cap at 75% loan-to-value, with some lenders holding projection-based purchases to 70%.
Do lenders care about local Airbnb regulations?
Yes. Expect questions about permits, licensing, and local ordinances. A market with hostile or unsettled STR rules narrows the lender panel and can cap leverage.
Can a conventional mortgage work for an Airbnb?
If you qualify on your personal income (DTI), a conventional investment-property loan can finance a property you happen to rent short-term — often at a better rate. STR-DSCR programs exist for when you want the property’s revenue, not your paystub, to do the qualifying.