Airbnb loans are investment property loans structured around short-term rental income. The term covers several financing structures used at different stages of the investment, from acquisition to repositioning a distressed asset. A breakdown of those short-term rental loan types helps investors identify the right structure before applying.
Ridge Street originates Airbnb loans as DSCR-based 30-year permanent financing for purchases, refinances, and cash-out transactions across 35 states. Qualification runs on the property's cash flow, not the borrower's personal income.
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Up to 80% Loan-to-Value (LTV)
Rates From 6.25%
Origination Points From 0%
30-year loan term
Minimum Credit Score: 700
Income based on AirDNA Cashflow Projection
First Time Investors Allowed
Ridge Street uses AirDNA market data to evaluate short-term rental income instead of relying on long-term lease assumptions. This allows Airbnb and VRBO properties to be underwritten based on realistic occupancy, nightly rates, and operating costs in the local market.
By using projected Airbnb rental performance rather than long-term market rents, investors can often qualify for higher leverage and stronger DSCR outcomes on both purchases and refinances — even without existing rental history.
The Airbnb DSCR loan process at Ridge Street Capital is designed to be fast and predictable. Most loans close in as little as 21 days, with minimal documentation and no personal income verification.
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This section provides a complete checklist of the Borrower Requirements, Property Requirements, and Documents needed for a Airbnb Loan with Ridge Street.
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4600 Square Feet
DSCR Loan (Airbnb)
5 Bedrooms
7 Bathrooms
1910 Square Feet
DSCR Loan (Airbnb)
3 Bedrooms
2 Bathrooms
2760 Square Feet
DSCR Loan (Airbnb)
5 Bedrooms
4 Bathrooms
Conventional lenders qualify borrowers based on W-2 income and require documented rental history before recognizing rental income. Airbnb properties typically have neither at acquisition. Without a lease or 12 to 24 months of rental history, most conventional programs either decline the file or underwrite to long-term market rent, which is often below actual Airbnb performance.
Airbnb loans instead qualify based on the property’s projected or actual rental income, without relying on the borrower’s personal income. For a full comparison of both structures, see DSCR vs Conventional Loans.
Qualification depends on three factors: the appraised property value, projected or actual Airbnb rental income, and the borrower’s credit profile. The projected income must support a Debt Service Coverage Ratio of at least 1.0 at the requested loan amount, meaning the property’s monthly income covers its full PITIA payment.
Ridge Street requires a minimum credit score of 700. The property must also be eligible for short-term rental use under local zoning and HOA rules, which is verified during underwriting.
No. A property that has never been listed on Airbnb can qualify using projected short-term rental income. Ridge Street uses AirDNA market data to estimate occupancy, nightly rates, and net operating income based on comparable properties in the local market. The projection replaces documented lease history in the underwriting file.
Yes. Ridge Street originates Airbnb loans in the name of an LLC or other legal entity. The borrowing entity must be properly formed and in good standing at closing. No title transfer to personal name is required. This structure keeps liability at the entity level and does not affect the income-based qualification process for the Airbnb property loan.
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.
Ridge Street originates Airbnb property loans on single-family homes, condos, townhomes, and 2 to 4 unit residential properties. The property must be non-owner-occupied and eligible for short-term rental use under local zoning and any applicable HOA rules.
Standard landlord insurance does not satisfy lender requirements for short-term rental properties. Airbnb lenders require a specialized STR policy covering guest liability, high tenant turnover, and loss of rental income. Standard homeowner policies exclude business activity and are rejected at closing. Confirm the insurance requirement with the lender before the appraisal is ordered, not at closing. Providers that specialize in STR coverage include Steadily and Obie.
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.
Yes. Investors can request a pre-approval before going under contract. The pre-approval confirms borrower eligibility, including credit profile and entity structure, against Ridge Street's Airbnb loan program requirements. It does not lock a rate or commit to a loan amount, since those depend on the specific property and AirDNA income projection. Pre-approval is useful for investors actively making offers who want to confirm program eligibility before submitting a deal.
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Submit a deal for review, request a pre-approval before going under contract, or contact the team directly with questions about the program.
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