Airbnb LOANS

A DSCR Loan for Airbnb allows  you quickly access the funds you need to invest in a profitable short-term rental property. At Ridge Street Capital, we streamline the loan process by removing unnecessary hurdles—no need for personal income verification, extensive paperwork, or prior investor experience. Our approach makes getting the financing simple and stress-free. You can also read this article: DSCR vs Conventional Loans

The potential of your property to generate income is the key factor. We assess your property’s value through a professional appraisal and use local short-term rental market data from airdna to project cashflow. Short term rental loans also require that the investors has a credit score aboe 700 and either one other real estate investment or a personal mortgage.

Yes, using the actual or projected income from the airbnb or vrbo is the income that is used to qualify the short term rental loan. No personal income is required on DSCR Loans for Airbnb.

At Ridge Street Capital, we specialize in financing properties that you own. We do not finance rental arbitrage projects, where the investor leases a property to sublet it as a short-term rental.

Maintaining a strong credit score is essential. Although we require a minimum score of 700, having a higher credit score can help you secure a lower interest rate and improve your approval chances. Additionally, making a larger down payment may also enhance your qualification odds.

Yes, you can refinance your airbnb dscr loan at any time. Most DSCR loans for airbnb have a pre-payment penalty period. At Ridge Street, you can select a 0 YR Pre-Payment Penalty Period up to a 5 YR.

There are several options for financing short-term rental properties including conventional financing. Conventional financing requires personal income based underwriting and the loan affects the debt-to-income ratio on you personal credit report. If you're investing in rentals, DSCR Loans are typically the best option.

Each city has its own rules regarding short-term rentals, including zoning laws and licensing requirements. To avoid any surprises, before purchasing an airbnb do a quick search for "airbnb regulation in {city}". This will help you confirm that your Airbnb investment is allowed in that area and which licenses or permits are required - if any.

Landlord insurace for short term rentals is required. Providers like Steadily and Obie, specialize in insurance for short term rentals.