Unlock the potential of your short-term rental investment with our tailored loan programs. Designed for Airbnb, VRBO, and vacation rental properties, our loans offer flexible terms, easy qualification, and competitive rates to help you maximize your rental income.
Short-Term Rental (STR) loans are specialized financing solutions designed specifically for properties listed on Airbnb, VRBO, and other vacation rental platforms. Unlike traditional mortgages, these programs use projected or actual rental income to qualify borrowers, making them ideal for rental property investors.
Our STR loans are crafted to meet the unique needs of short-term rental investors, offering accessible financing with flexible income qualification methods. You can use AirDNA projections or existing rental history to qualify without personal income verification, and choose from various loan terms including 30-year, 40-year, and interest-only options.
Use AirDNA projections or existing rental history to qualify without personal income verification, making it easier to finance your investment property.
Our STR loan programs are designed specifically for Airbnb and VRBO property investors
Your credit score is a crucial factor in qualifying for a short-term rental mortgage. Understanding the requirements and how to meet them can significantly improve your chances of approval.
Best rates and terms
Required for approval
Minimum history length
Last 12 months reviewed
Best rates and terms, lowest down payment requirements, fastest approval process
Good rates, standard down payment requirements, smooth approval process
Higher rates, larger down payment may be required, additional documentation needed
Understanding how lenders verify and calculate short-term rental income is crucial for financing approval. Learn about documentation requirements, income calculations, and qualification standards.
Last 2 years of personal and business tax returns if applicable. Shows overall financial stability and income consistency.
12 months of bank statements showing rental deposits and business transactions. Verifies actual rental income deposits.
Platform statements (Airbnb, VRBO) showing bookings and income. Provides proof of rental performance and occupancy rates.
AirDNA or similar data showing market performance and projections. Used for new properties without rental history.
For properties with existing rental history:
For properties without rental history:
50% total DTI including all properties and personal debt. This includes mortgage payments, credit card minimums, auto loans, and other obligations.
All mortgages and obligations included in DTI calculation. Rental income from existing properties can offset PITIA payments for new purchases.
Documented rental income can offset PITIA (Principal, Interest, Taxes, Insurance, Association fees) payment for the subject property.
Standard 25% reduction for maintenance, utilities, management fees, and vacancy. This conservative approach ensures sustainable cash flow.
If your details are close to these guidelines, we encourage you to apply or contact us. Even if you don't qualify for this loan, we could have other options for you.
Minimum FICO score required for most short-term rental loan programs
Up to 80% LTV available for purchases, maximizing your investment potential
Eligible for 1-4 family homes used as short-term rental properties
Based on AirDNA projections or 12 months of existing rental history
Explore our resources to learn more about short-term rental financing, Airbnb investment strategies, and maximizing your rental income potential.
| Strategy | Description | Income Impact |
|---|---|---|
| Seasonal Pricing | Adjust rates based on demand seasons | 20-40% higher peak season rates |
| Weekend Premium | Higher rates for Friday/Saturday nights | 25-50% weekend rate premium |
| Length-of-Stay Discounts | Weekly/monthly discounts to reduce turnover | Higher occupancy, lower cleaning costs |
| Last-Minute Pricing | Dynamic pricing for last-minute bookings | 15-30% higher last-minute rates |
| Event-Based Pricing | Premium rates during local events/festivals | 50-200% rate increase during events |
| Improvement | Investment | ROI Impact |
|---|---|---|
| Professional Photography | $200-500 | 20-40% more bookings |
| High-Speed WiFi | $50-100/month | Essential for positive reviews |
| Smart Home Features | $500-2000 | 10-25% rate premium |
| Outdoor Space Enhancement | $1000-5000 | 15-30% higher rates |
| Professional Cleaning | $80-150/cleaning | Better reviews, repeat bookings |
| Metric | Good Performance | Excellent Performance | Impact on Loan Qualification |
|---|---|---|---|
| Occupancy Rate | 65-75% | 75-85% | Higher income for DSCR calculation |
| Average Daily Rate (ADR) | Market average | 15-25% above market | Higher qualifying income |
| Revenue Per Available Room (RevPAR) | $80-120 | $120-200+ | Stronger cash flow evidence |
| Guest Rating | 4.5+ stars | 4.8+ stars | Higher booking consistency |
| Repeat Guest Rate | 10-15% | 20-30% | Stable income history |
| Financial Aspect | Short-Term Rentals (STR) | Long-Term Rentals (LTR) |
|---|---|---|
| Monthly Rental Income | $3,000 - $8,000+ | $1,500 - $3,500 |
| Annual Cash Flow | $15,000 - $50,000+ | $6,000 - $20,000 |
| Occupancy Rate | 65-85% (seasonal) | 95-100% (stable) |
| Vacancy Periods | Frequent but short | Infrequent but longer |
| Cash-on-Cash Return | 8-20%+ | 5-10% |
| Appreciation Potential | Higher in tourist areas | Steady market growth |
| Aspect | Short-Term Rentals | Long-Term Rentals |
|---|---|---|
| Time Commitment | High (10-20 hours/week) | Low (2-5 hours/month) |
| Management Costs | 15-30% of revenue | 8-12% of rent |
| Guest Interaction | Frequent communication | Minimal interaction |
| Turnover Frequency | Weekly or daily | Yearly or less |
| Maintenance & Cleaning | Frequent, professional required | Scheduled, as-needed |
| Furnishing Requirements | Fully furnished with amenities | Usually unfurnished |
| Factor | Short-Term Rentals | Long-Term Rentals |
|---|---|---|
| Regulatory Risk | High (changing local laws) | Low (stable regulations) |
| Seasonal Fluctuations | Significant | Minimal |
| Economic Sensitivity | High (discretionary spending) | Low (basic housing need) |
| Property Wear & Tear | High (frequent turnover) | Moderate (stable tenants) |
| Insurance Costs | Higher (commercial policies) | Standard landlord insurance |
| Market Competition | Intense (platform saturation) | Moderate (local market) |
| Requirement | Description | Typical Cost | Penalties for Non-Compliance |
|---|---|---|---|
| Business License | Required in most municipalities | $50-500/year | $500-10,000+ fines |
| STR Permit | Short-term rental specific permit | $100-1000/year | Permit revocation, daily fines |
| Zoning Approval | Verify property is in STR zone | $50-300 | Cease and desist, legal action |
| Tax Registration | Sales/occupancy tax collection | Free - $100 | Back taxes + penalties |
| Safety Certification | Fire/safety inspections | $150-500 | Insurance void, permit denial |
| HOA Approval | If in homeowners association | Varies by HOA | Fines, legal action by HOA |
| Tax Type | Rate Range | Collection Method | Reporting Requirements |
|---|---|---|---|
| Occupancy Tax | 1-15% of rental income | Monthly/quarterly filing | Detailed booking records |
| Sales Tax | 4-10% of rental income | Platform may collect | State tax returns |
| Income Tax | Federal + state rates | Annual filing (Schedule E) | Full income/expense records |
| Property Tax | 1-3% of assessed value | Annual payment | County tax records |
| Business Taxes | Varies by entity type | Quarterly estimated payments | Business tax returns |
| Local Fees | $25-500/year | Annual renewal | Municipal records |
| Insurance Type | STR Requirements | Traditional Requirements | Average Annual Cost |
|---|---|---|---|
| Liability Coverage | $1-2 million minimum | $300,000-500,000 | $800-1,500 |
| Property Damage | Replacement cost + contents | Basic dwelling coverage | $1,000-2,000 |
| Loss of Income | Essential for cancellations | Optional | $200-500 |
| Umbrella Policy | Highly recommended | Optional | $200-400 |
| Platform Coverage | Airbnb/VRBO host protection | Not applicable | Included with platform |
| Workers Compensation | Required if hiring staff | Not typically required | $500-1,000+ |
Streamlined 5-step process for short-term rental loan approval
Discuss your investment strategy with our STR loan specialists. We'll analyze your target property using AirDNA or similar platforms to estimate rental income potential and determine your maximum loan amount.
Provide minimal documentation - no tax returns required! We'll use AirDNA projections or your existing rental history to qualify the property's income. Gather basic financial documents and property information.
Our specialized STR underwriters review your application with focus on the property's rental potential. A professional appraisal is ordered to determine market value and ensure proper loan-to-value calculations.
Receive final approval and choose your preferred loan terms - 30-year, 40-year, or interest-only options. Review all loan documents and prepare for closing with our simplified process.
Complete the closing process and receive funding for your short-term rental investment. With Coast2Coast Mortgage's streamlined STR process, you can close efficiently and start generating rental income.
STR loans are specifically designed for properties listed on platforms like Airbnb and VRBO. The key differences include: income qualification based on projected or actual rental income (not personal income), higher LTV ratios (up to 80%), no tax returns required, and loan terms tailored for rental investments (including 40-year and interest-only options). Traditional investment property loans typically require personal income verification, have lower LTVs, and more stringent documentation requirements.
Yes! One of the unique advantages of our STR loan program is that you can qualify using AirDNA projections even if you don't have existing rental history for the property. AirDNA provides data-driven rental income estimates based on comparable properties in the area, occupancy rates, and seasonal trends. This allows investors to finance properties based on their potential rental income rather than personal income or existing rental history.
Our STR loans are available for 1-4 family homes used as short-term rental properties. This includes single-family homes, townhouses, condos (in approved buildings), duplexes, triplexes, and fourplexes. The property must be located in an area that permits short-term rentals and must be used exclusively as a rental property (not owner-occupied). We work with properties in popular vacation destinations, urban centers, and other high-demand rental markets.
No, there are no platform restrictions. Our STR loans work with Airbnb, VRBO, Booking.com, and other short-term rental platforms. You can even use multiple platforms simultaneously or switch between them. The loan qualification is based on the property's rental income potential, not which specific platform you use. This flexibility allows you to choose the platforms that work best for your investment strategy and market.
Both options can be advantageous for STR investments: 40-year terms provide lower monthly payments while still building equity over time, making them ideal for long-term hold strategies. Interest-only options offer the lowest possible payments initially (typically for 5-10 years), maximizing cash flow for reinvestment or covering variable expenses. The choice depends on your investment strategy - interest-only for maximizing short-term cash flow, or 40-year for a balance of affordability and equity building.
Speak with a Short-Term Rental loan specialist