Short-term rentals have reshaped real estate investing and have created new income streams for landlords and real estate investors. However, the traditional financing market hasn’t fully adapted to provide the financing solution needed for airbnb’s and other short term rentals.

Traditional DSCR lenders and conventional banks still underwrite using long-term leases and W-2 income, excluding many profitable Airbnb properties. Even airbnb rentals with strong seasonal returns often struggle to qualify for conventional loans.

Airbnb loans fill that gap. Specialized Airbnb lenders evaluate properties based on short-term rental performance, using cash flow, occupancy data, and projected income to assess eligibility. 

Top 4 Most Common Airbnb Loan Types

Airbnb financing is a category of investment loan built around short-term rental income. These programs use real property data such as occupancy rates, daily short term rental rates, and seasonal trends to calculate how much income a property can generate.

Airbnb loans vary by purpose, acquisition, renovation, or portfolio growth strategy. The most common options include DSCR loans, conventional loans for a second home, and business or working capital lines.

DSCR Loan For Airbnb

A Debt Service Coverage Ratio (DSCR) loan is qualified based on a property’s rental income relative to its debt service obligation. Lenders divide projected Airbnb rental income by monthly mortgage payments, taxes, and insurance to calculate the DSCR ratio. A ratio of 1.0 or higher meets approval requirements, allowing investors to qualify without W-2 income.

Key features include the following:

• Cash-flow qualification: Eligibility is based on projected rental income covering operating expenses.
• Flexible terms: Options like interest-only periods or fully amortizing 30 YR Loans.
• Entity lending: Loans can be issued to LLCs and scaled across multiple properties.
• Low Interest Rates: DSCR Loans have low interest rates which are typically within +/- 0.5% of conventional mortgage loans.

Convention Loans For A Second Home

Some investors use conventional mortgages to finance Airbnb properties, which treated as second home loans. These loans generally require a higher credit score, documented personal income, and down payments of 20%–25%, but they offer long-term, stable financing.

Key Features:

• Fixed or adjustable rates: Standard 15- or 30-year mortgage terms.
• Lower cost for well-qualified borrowers: Rates can be lower than private or hard money options.
• Eligibility requirements: Typically limited to properties rented short-term less than 14 days/year for conventional purposes, though some lenders allow longer-term Airbnb use if properly disclosed.

Hard Money Loans 

Hard money loans are short-term, asset-based financing designed for investors who need speed and flexibility. These loans are often used for acquisitions, renovations, or flips and rely on the property’s value rather than borrower income. Many investors use these loans to purchase and renovate distressed properties before renting them on Airbnb and VRBO.

Key Features:

• Fast closings: Funding can occur in days instead of weeks.
• Flexible underwriting: Ideal for properties that don’t meet conventional or DSCR criteria.
  Higher interest rates: Rates are higher than conventional loans but are offset by speed and flexibility.
• Short terms: Usually 6–24 months, often paired with bridge or exit strategies.

Business or Working Capital Loans

For investors with 12+ months of business history who need liquidity for renovations, furnishings, or business marketing, business loans or credit lines can supplement property financing. These loans are often unsecured or based on business revenue rather than collateral.

Top 7 Best Airbnb Lenders (2025 Comparison)

Airbnb lenders differ in underwriting standards, speed, and investor focus. Some build data-driven short-term rental (STR) programs, while others offer DSCR loans primarily for long term rentals. Knowing how each operates helps investors choose financing aligned with their property strategy.

Ridge Street Capital

Ridge Street Capital offers DSCR loans built specifically for Airbnb investors, along with fix & flip and bridge financing. Their strength is manual, common-sense underwriting—evaluating true STR income potential using comps and feasibility rather than relying solely on long-term rent schedules. This makes them ideal for investors in competitive, STR-focused markets.

• Key Programs: Airbnb DSCR, Fix & Flip, Bridge, Portfolio
• Highlights: Fast closings, industry low rates, LLC-friendly structuring, strong STR underwriting
• Best For: Investors needing a lender that accurately underwrites Airbnb revenue and can close quickly on complex or value-add deals.

Park Place Finance

Park Place Finance provides straightforward DSCR loans and investor-friendly hard money options. Their programs follow clear, predictable underwriting guidelines, making them a strong fit for standard rental properties or hybrid STR/LTR strategies.

• Key Programs: Standard DSCR, Hard Money
• Highlights: Competitive pricing, simple documentation, consistent national programs
• Best For: Investors seeking reliable DSCR financing for long term rentals or short term rentals with 12 months of rental history.

Easy Street 

• Easy Street Capital provides dedicated short-term rental (STR) financing with 30-year fixed and adjustable DSCR loan options. Underwriting is based on Airbnb or Vrbo cash-flow performance rather than personal income.
  • Key Programs: STR DSCR loans
  • Qualification: DSCR ≥ 1.0 using actual or market rent
  • Highlights: 30-year fixed and ARM options, cash-out refinance available
  • Best For: Experienced Airbnb hosts seeking long-term, stable financing through DSCR program
  ‍

Certain Lending

Certain Lending uses a tech-driven lending platform to offer fast approvals for DSCR, flip, and bridge loans. While not exclusively STR-focused, their flexible credit overlays and quick underwriting make them a strong option for investors needing certainty and speed.

• ‍Key Programs: DSCR, Bridge, Fix & Flip
• ‍Highlights: Fast approvals, streamlined digital process
• ‍Best For: Investors who want quick, modern underwriting and consistent closings across mixed rental strategies.

‍Newfi Lending

Newfi’s DSCR Loan for Airbnb combines traditional underwriting with short-term rental income analysis. Borrowers can qualify using projected Airbnb earnings rather than signed leases, allowing flexibility for those transitioning to STR operations.

• Key Programs: DSCR for Airbnb
• Qualification: DSCR ≥ 1.0, no tax returns required
• Highlights: Recognizes Airbnb income, nationwide availability
• Best For: Experienced short-term rental operators seeking to refinance or expand their portfolios

Rocket Mortgage

Rocket Mortgage offers conventional mortgages with STR-compatible guidelines when the borrowers meet standard income qualification criteria. Their platform is ideal for borrowers who purchase a property they plan to use as an Airbnb part-time.

• Key Programs: Conventional, 2nd Home Loans
• ‍Highlights: Easy online application, low rates for conventional loans, nationally available
• ‍Best For: Newer investors or owner-occupants looking to use conventional financing on a property they’ll also list on Airbnb.

‍Lending One

LendingOne is a large national private lender offering DSCR, bridge, and flip loans with stable underwriting and predictable terms. While not STR-specialized, their DSCR loans work well for properties with solid income projections and investors wanting lender consistency.

• ‍Key Programs: DSCR, Bridge, Fix & Flip
• Highlights: Reliable closings, strong national footprint, investor-focused loan programs
• ‍Best For: Investors wanting a well-established lender with dependable DSCR and bridge loan options.

How to Choose the Right Airbnb Lender

Choosing an Airbnb lender depends on your investment strategy, property type, and cash-flow goals. A condo in a seasonal market may need a different loan structure than a single-family home with steady year-round bookings.

When comparing programs, focus on these key factors:

• Property type: Some lenders limit condos, multifamily units, or non-warrantable properties. Other lenders accommodate broader portfolios.
• Cash flow: Prioritize lenders that evaluate projected Airbnb income rather than requiring full historical records.
• Loan size: Many national programs set minimums of $100K–$150K, which may exclude lower-cost markets.
• Speed to close: Short-term rental deals move fast, so choose lenders known for efficient underwriting.
• LLC eligibility: Entity-based loans can offer liability and tax advantages. Confirm the lender allows business structures.
• Minimum DSCR: Most programs require ratios between 1.0 and 1.25, depending on market and property type.

As you compare lenders, prioritize those that underwrite based on property performance instead of personal income.

Why Investors Choose Ridge Street Capital

Ridge Street Capital provides nationwide financing programs designed for short-term rental investors. Its DSCR, Fix-and-Flip, and Rental Portfolio loans focus on property performance rather than personal income.

Key Advantages:

• Cash-flow-based underwriting that qualifies based on property income, not W-2s or tax returns.
• Industry Low DSCR Loan Rates
• Consistent, investor-friendly programs available across all 50 states.

Get pre-qualified for your short-term rental loan.

Airbnb Financing FAQs

Can I use a traditional mortgage to finance an Airbnb property?

Yes, but most traditional lenders approve loans only for primary residences or second homes, not full-time short-term rentals. Conventional programs generally require a 15% to 25% down payment and verified W-2 income, which can limit active Airbnb investors. If you plan to finance multiple properties or qualify based on rental cash flow, a DSCR from an investor-focused lender is often more flexible.

What are the main challenges in getting a loan for an Airbnb?

Financing a short-term rental can be more complex than securing a loan for a long-term property. Many lenders view Airbnb income as variable and request detailed documentation such as credit reports, bank statements, and projected earnings. They may also require higher down payments, stricter eligibility standards, and slightly higher interest rates. Some properties face zoning or HOA restrictions that limit Airbnb operations. Specialized lenders such as Ridge Street Capital use cash-flow-based underwriting to simplify qualification for short-term rental investors.

What are alternative ways to finance a short-term rental property?

Investors who don’t meet conventional standards can explore other financing options. Portfolio loans allow financing for multiple Airbnb or vacation rental properties under one loan, which is ideal for scaling a portfolio. Bridge or hard-money loans provide short-term funding for acquisitions or renovations when speed is critical. Home equity products such as HELOCs and cash-out refinances let investors use existing property equity to fund new purchases.

How were these Airbnb lenders evaluated?

Each Airbnb lender featured in this guide was reviewed based on criteria most relevant to short-term rental investors. The evaluation considered: underwriting model, program flexibility, loan size and coverage, speed and documentation requirements, and investor accessibility. Lenders that met the widest range of these criteria ranked highest for accessibility and scalability. Ridge Street Capital stands out for offering nationwide coverage, low rates, and cash-flow-based underwriting, making it one of the most flexible Airbnb lenders available.‍