DSCR loans that qualify with STR revenue, not long-term rent. Our Short-Term Rental DSCR program qualifies you using the property's actual (T-12) or projected (AirDNA / Rabbu) nightly-rental revenue rather than the long-term rent schedule — a game-changer in high-demand vacation markets.
Reviewed and updated August 31, 2026
The moment you finish the Airbnb loan application, our system pulls comparable listings and builds a PDF report you can download, share with partners, or take to your CPA. No cost. No obligation. Yours to keep.
Estimate how nightly-rental revenue translates into a debt-service coverage ratio. Enter your ADR (average daily rate) and occupancy — from your own booking history or a third-party market estimate — to see roughly where a scenario lands against the 1.00 DSCR typically required on short-term rental financing. Illustrative only; actual income, expense treatment, and terms are determined at underwriting.
Illustrative only. Not an approval, quote, or commitment to lend. Actual qualifying DSCR is set at underwriting from the appraisal, 1007, PMS data, and investor overlays in effect at lock.
How to read this: DSCR above 1.10 typically earns best-tier pricing. Between 1.00 and 1.10 still qualifies but usually prices a step higher. Below 1.00 fails STR-income underwriting — options are to reduce LTV, buy down the rate, or fall back to long-term-rent (1007) DSCR if the jurisdiction permits.
These are actual pricing responses returned for a sample business-purpose DSCR scenario on non-owner-occupied investment property - rate, APR, borrower points or lender credit, estimated principal and interest, and lock period from the same quote. Pricing changes intraday and is not a loan approval, commitment, or guarantee of financing.
Live pricing unavailable — no current pricing response.
The three cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.
Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.
APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.
Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.
Our Short-Term Rental DSCR program qualifies you using the property's actual (T-12) or projected (AirDNA / Rabbu) nightly-rental revenue rather than the long-term rent schedule — a game-changer in high-demand vacation markets.
Complete the short pre-qualification form and upload your supporting documents — a licensed loan officer follows up with an initial scenario review, usually the same business day. Formal pricing and terms follow underwriting.
A short-term rental (STR) loan is a DSCR mortgage that qualifies the property using nightly-rental revenue — Airbnb, Vrbo, Booking.com, direct bookings — rather than the traditional long-term rent schedule. It matters because a well-run STR often produces 2–3× the gross income of a long-term rental on the same property, so long-term-rent DSCR can undercount your real cash flow by half.
Three income sources rank in preference:
Every STR loan we underwrite includes a jurisdiction check: city ordinance, county rules, HOA covenants, and any statewide caps. Markets like Austin, Dallas, and Nashville have specific STR permit categories; markets like New York City, Honolulu, and parts of Los Angeles restrict or prohibit non-owner STR. We verify before you commit non-refundable earnest money.
STR rates typically run 7%–9.25% depending on FICO, LTV, and DSCR. 30-year fixed, 5/6 and 7/6 ARM, and 10-year interest-only are all available. Reserves are 6 months of PITIA (higher than the 3–6 on standard DSCR because STR income is variable).
First-time STR operators, experienced hosts scaling from 1 to 20+ units, refinances out of hard money into permanent debt after stabilization, and 1031 exchanges into vacation-market properties.
Illustrative only. Not a quote or commitment to lend.
Share the property address, rent, and purchase price or payoff, and a licensed loan officer reviews your scenario — usually the same business day. Pricing, LTV, and final terms are confirmed in underwriting.
T-12 actuals, AirDNA, or Rabbu projections used for qualification.
Furnishings valued at appraisal for eligible loan-to-cost calcs.
We check STR licensing rules before you commit — no surprises at closing.
Close in your STR operating entity.
Send the property details, estimated credit range, and target leverage. A licensed loan officer reviews your scenario and walks you through the options available. All terms are subject to underwriting approval.
Program guidelines vary by investor. These are typical ranges — a Loan Officer confirms exact numbers on your scenario.
| Requirement | Typical | Notes |
|---|---|---|
| Minimum credit score | 700 for short-term rental income | Files that qualify on long-term market rent instead can go to 620. |
| Down payment / LTV | 25%+ down (up to 75% LTV) | 75% on purchase, 70% on refinance, and cash-out follows the standard DSCR cash-out caps. |
| Minimum DSCR | 1.00 minimum | Sub-1.00 DSCR pricing is not available when qualifying on short-term rental income. |
| Income source | T-12 platform statements, bank statements, AMC STR analysis, or AirDNA | AirDNA needs 4 comps, 50%+ occupancy, and a forecast dated within 90 days of the note. |
| Revenue haircut | 20% expense factor applied | We qualify on 80% of documented gross short-term revenue. |
| Experience | 1 year of STR operating history on refinances | Purchases may use a comparable rent schedule or forecast. |
| Reserves | 6 months PITIA | Higher than standard DSCR due to income variability. |
| Property types | 1–4 unit, condo | Condotels are available on the expanded tier. Mixed-use is not eligible for STR income. |
| Loan amount | $150K – $3.5M | |
| Ordinance check | Municipal and HOA STR approval required | City, county, and HOA rules are all reviewed before close. |
Ranges are typical program guidelines and vary by investor, credit tier, and market. Not a commitment to lend.
Send the address, price or payoff, and projected rent — a licensed loan officer returns a written scenario review, usually the same business day.
Compiled from Freddie Mac PMMS, U.S. Treasury, and BLS releases. Figures are published with the period they cover and the date they were retrieved.
Flip the math around: enter your nightly rate and PITIA, and this shows the minimum occupancy needed to clear a 1.00 DSCR — and the higher occupancy that unlocks best-tier pricing. Compare the number to real AirDNA / Rabbu occupancy for the address before you write the offer.
Illustrative only. Real underwritten occupancy is set from PMS statements or AirDNA at underwriting.
Within typical STR occupancy ranges. Verify against AirDNA / T-12 for this exact address.
Investors want to see the highest-quality, most verifiable revenue figure. Below is the documentation preference order most short-term rental programs apply, and why each tier prices differently.
Twelve months of statements from Airbnb, Vrbo, Booking.com, Hostfully, Guesty, or OwnerRez. This is verified cash — bank-matched — so it earns the smallest vacancy discount (usually 20%) and best pricing. If you have 12 months on the exact property, use this.
Address-level revenue estimates for properties that are not yet operating as STRs. Underwriters typically discount 20–25% for vacancy and platform fees. Faster to gather but almost always prices a step behind T-12 actuals.
Appraiser's Form 1007 Single-Family Comparable Rent Schedule. Used when the jurisdiction restricts non-owner STR or when STR revenue doesn't clear DSCR. It's the safety net that lets deals close in tighter markets.
Sources cited on the actual loan file: PMS statement PDFs, AirDNA Rentalizer report, or Rabbu revenue estimate. We do not accept screenshots without a reconcilable statement.
Short-term-rental rules change constantly and vary by city, county, and HOA. We check the specific address during underwriting, but you should also verify these five items directly with the jurisdiction. This protects your deposit and helps us keep the file on the STR-income program instead of falling back to long-term rent.
Is non-owner-occupied STR allowed at this address? Are there density caps, zone restrictions, or a moratorium?
Does the property need an active permit before it can host? Is it transferable at closing, and how long is the queue?
Some jurisdictions cap guest count or require 7- or 30-night minimums. This directly changes ADR and occupancy projections.
Master deed or CC&Rs may prohibit rentals under 30 or 90 days regardless of what the city allows.
State and local occupancy tax accounts. Airbnb collects in many markets; some require the host to remit directly.
This is general due-diligence guidance, not legal advice. Rules change; always confirm the current ordinance and permit availability with the city/county and your attorney before closing.
A beach property that runs 92% occupancy in July and 28% in February does not underwrite at 92% — it underwrites at the blended annual number. Here is a simplified example of why that matters for DSCR.
| Scenario | ADR | Occupancy | Gross annual | After 25% discount | Monthly income |
|---|---|---|---|---|---|
| Peak-only assumption (wrong) | $325 | 88% | $104,390 | $78,293 | $6,524 |
| Blended annual (correct) | $275 | 62% | $62,233 | $46,674 | $3,890 |
| Conservative — new operator | $250 | 55% | $50,188 | $37,641 | $3,137 |
Illustrative math for education only. Actual underwritten income is set from the specific property's PMS statements or AirDNA report reviewed at underwriting.
A property can often qualify on either the STR revenue path or the standard long-term-rent (1007) DSCR path. Here is how the two compare so you can pick the one that gets your deal closed with the best terms.
| STR income DSCR | Long-term-rent DSCR | |
|---|---|---|
| Income source | PMS T-12 or AirDNA / Rabbu | Appraiser Form 1007 or actual lease |
| Reserve requirement | 6 months PITIA | 1–6 months PITIA |
| Typical rate premium | ≈ 0.25–0.50% above LTR DSCR | Baseline DSCR pricing |
| Max LTV — purchase | Up to 75% | Up to 80% |
| Max LTV — cash-out | Up to 75% | Up to 75% |
| Best when | Well-run STR with 12 months of statements and permitted jurisdiction | Restrictive STR markets or lower-cash-flow scenarios |
| Ordinance check required | Yes — permit + zoning | No STR-specific check |
Have these ready before you apply and a licensed loan officer can usually review your scenario within one business day of receiving them.
Every U.S. market falls somewhere on this spectrum. Where a property lands changes how we size the loan, which income source we use, and whether the deal prices as STR or falls back to long-term-rent DSCR.
Non-owner STR allowed. Simple permit or none. STR income underwritten at full weight — best pricing.
Permits required, caps on density or occupancy. STR income accepted with a permit copy in the file.
Owner-occupied only, or 30/90-night minimums. STR income usually falls back to long-term-rent (1007).
Non-owner STR banned or under moratorium. We won't use STR income; deal must underwrite as LTR DSCR.
Educational framework only, not legal advice. Confirm the current ordinance for the specific address with the city, county, HOA, and your attorney before your earnest money goes non-refundable.
A landlord (DP-3) policy alone usually does not cover short-term-rental commercial use. Underwriting will pull the binder and check for these five items before we can clear-to-close.
Named STR or short-term rental endorsement — a standard DP-3 without this rider is often denied a claim on a paying guest.
Minimum $1,000,000 per-occurrence liability. Higher limits recommended for pools, hot tubs, or waterfront.
Standard mortgagee wording with the lender's name and address before docs are drawn.
Coverage A written at replacement cost, not actual cash value. Underwriting checks against the appraised value.
12 months of rent-loss coverage. Some carriers cap it — verify the policy actually pays STR revenue, not just LTR rent.
Coastal and Gulf markets require separate wind or flood binders. AirDNA revenue does not offset a missing flood policy.
General guidance only. Confirm coverage with a licensed insurance agent who writes STR policies in your market.
Investors ask us all the time why they can't just use a Fannie / Freddie loan or tap their primary-home HELOC on a short-term rental. Here is the honest side-by-side.
| STR DSCR (us) | Conventional / conforming | Bank HELOC | |
|---|---|---|---|
| Qualifies on | Property STR revenue (T-12 PMS or AirDNA) | Personal DTI — 2 yrs W-2 or tax returns | Primary home equity + personal DTI |
| Vested in | LLC / LP / Corp — no rate premium | Personal name usually required | Personal name (primary residence) |
| Max LTV — purchase | Up to 75% | Typically 75% investment | Not for purchase |
| Max LTV — cash-out refi | Up to 70% | Typically 70–75% | Up to ~80% CLTV on primary |
| Property count cap | None — portfolio-scalable | 10 financed properties max | One primary residence |
| Prepayment penalty | Often 3–5 yr step-down | None on conforming | Typically none |
| Speed to close | 10–15 business days | 30–45 days | 30–45 days |
| Best when | Any STR, any market, any entity | First one or two properties in personal name | Extracting equity from primary — not the STR |
Not actual closed loans — fully illustrative examples using round numbers so you can see how ADR, occupancy, and permit posture change the outcome on a real file.
Illustrative only — not offers, quotes, commitments to lend, or a representation of any specific closed loan. Actual pricing depends on FICO, LTV, reserves, property type, and investor overlays at lock.
Send the address and 12-month revenue or projections — we run STR DSCR and return an initial scenario review, usually the same day.
Tell us the property type, leverage, and timeline. We confirm eligibility and send back an initial scenario review before you write the offer.
Address, purchase price or payoff, and estimated rent is all we need to send back real numbers.
Confirm STR is permitted in the jurisdiction (city/county/HOA).
12-month PMS statement (Airbnb, Vrbo, Hostfully) or AirDNA report.
Includes 1007 and STR income addendum.
10–15 business days; expense ratio applied per program.
Wire funds; servicing set up.
Our team walks you through each step — pre-approval, valuation, and docs — in plain English.
Here's what to have ready when you apply. Missing items can be added during processing — but a complete file closes faster.
Simply Approved Mortgages LLC (NMLS #2620881) is a mortgage broker, not a direct lender, and arranges residential mortgage loans in Florida and Colorado. Airbnb / STR business-purpose loans may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
The questions investors ask us most — plus the exact answers we give on the phone.
No — first-time STR operators are welcome. A track record improves pricing but isn't required.
T-12 PMS actuals when the property is an operating STR; otherwise AirDNA or Rabbu projections discounted 20–25% for vacancy.
We check the specific ordinance for the address. In restrictive markets we can often still lend based on a long-term-rent fallback DSCR.
Some jurisdictions require an STR permit for the property to legally operate. We verify requirements pre-close and can lend either with the permit or with a long-term-rent fallback DSCR.
Furnishings can be factored into the value on eligible programs — discuss with your loan officer up front.
680 minimum; 720+ for best pricing.
1.00 minimum; 1.10+ prices best. STR income is vacancy-adjusted, so a 1.10 DSCR on STR math is roughly comparable to a 1.20 on long-term-rent math.
Only if the HOA prohibits STR. We review the HOA docs during underwriting; if STR is prohibited we lend on long-term-rent DSCR or the deal doesn't fit.
Yes — this is a common path. Once the property has 3–6 months of PMS data and the ordinance/permit are clean, we refinance into a 30-year DSCR STR loan.
Yes — LLC vesting is standard and recommended for STR liability reasons.
80% LTV on purchase, 75% on cash-out refinance, subject to DSCR and credit tier.
Typically 7%–9.25% depending on FICO, LTV, and DSCR — usually 0.25–0.50% above long-term-rent DSCR.
Start with the DSCR calculator to test rent against the payment, then the cap rate calculator for the unlevered yield, the cash-on-cash return calculator for the levered year-one return, and the ARV calculator when the plan involves a rehab. All outputs are illustrative estimates, not an approval, an offer of credit, or a commitment to lend.
No. Results are shown only for the states where we arrange financing, where Simply Approved Mortgages LLC arranges business-purpose investment property financing. Selecting any other state withholds results — the check runs on our servers and fails closed.
Yes. Every calculator produces a share link that encodes the scenario inputs only — names, emails, phone numbers, and addresses are never included — plus a copy-to-clipboard summary of the key numbers you can paste into an email or a deal memo.
Simply AI explains the figures already shown on the page in plain English. It provides educational explanations only, does not quote rates, does not confirm eligibility, and cannot approve financing. Rates, eligibility, fees, and terms are subject to verification and change — speak with a licensed loan originator before making a financing decision.
Independently verify program rules and consumer protections.
Long-term-rent DSCR — the fallback if STR isn't permitted.
Buy a US vacation rental as a foreign investor.
Renovate and stabilize before refinancing into an STR DSCR.
Bundle multiple STR properties into one loan.
Run STR revenue through the DSCR math.
Free calculators for the metrics underwriting actually looks at, plus side-by-side deal comparisons. All outputs are illustrative estimates and are not an approval, offer of credit, or commitment to lend.
Whole-deal underwriting: PITIA, DSCR, NOI, cap rate, cash-on-cash and refinance proceeds.
Test rent against PITIA and see the ratio a lender underwrites to.
Year-one levered return on the cash you actually put into the deal.
NOI, unlevered yield, and implied value at your target cap rate.
Comp-based after-repair value with the 70% rule and profit projection.
Model the rehab loan and the DSCR refinance in one place.
The monthly rent required to reach a 1.00, 1.10 or 1.25 ratio.
Full monthly PITIA — principal, interest, taxes, insurance and dues.
LTV, CLTV, equity, and proceeds available at your target leverage.
Proceeds, new payment, DSCR impact and break-even in months.
Cash to close: fees, prepaids, escrow reserves and credits.
Cash flow, DSCR and principal paydown side by side.
Cost of a step-down prepay at your planned exit year.
Investor metrics for the markets where we arrange financing.
Program availability, leverage, and terms vary by state and program. Business-purpose, non-owner-occupied investment property only; owner-occupied use is not supported. Simply Approved Mortgages LLC is a mortgage broker and arranges — but does not make — loans. Equal Housing Opportunity.
Submit a complete application with address, rent, credit authorization, and supporting docs — we.ll follow up with an initial scenario review, usually same business day. Formal pricing follows underwriting.
Get Your Personalized Rate QuotePick the loan type that fits your deal and complete a short, tailored pre-qualification. A licensed loan officer follows up with an initial scenario review once we have your credit authorization and supporting documents — usually the same business day. Formal pricing and terms follow underwriting.
The form below is tailored to DSCR rental loan — only the questions your program needs.
Every DSCR / business-purpose loan file needs a tri-merge credit report so we can verify identity, price your rate tier accurately, and confirm reserves and payment history for the underwriter. Cleaner credit typically unlocks a better rate and higher leverage.
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