Airbnb Loans in 2025: Playbook for STR Financing

Airbnb loans are a relatively new class of non-conforming mortgages specifically designed to meet the needs of real estate investors operating short-term rentals (STRs). These loan products were developed in response to the rapid rise of STR platforms like Airbnb and VRBO, which have disrupted the hospitality industry and created an entirely new investment category in the process.

That said, these loans come with trade-offs: stricter requirements, tighter lending limits, and higher interest rates. The advantage lies in how income is measured — using STR performance data instead of long-term rental comps — which can be the difference in getting a deal funded.

Ready to run the numbers on an STR? Lima One Capital underwrites DSCR loans tailored to STRs and can evaluate your deal using market rent data, so you’re not stuck qualifying on W-2s alone. Get quotes on 30-year fixed or interest-only options, see state eligibility, and compare terms before you write your next offer.

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What are Airbnb Loans?
How Airbnb loans work
Airbnb loan providers at a glance
Frequently asked questions (FAQs)
Final Thoughts

What are Airbnb Loans?

An Airbnb loan is essentially a financing product designed specifically for short-term rental properties. Unlike traditional rental loans, which are underwritten based on long-term lease income, Airbnb loans account for the unique cashflow patterns and risks of nightly bookings. These loans are structured to reflect both the higher income potential and greater volatility that come with operating an STR.

The demand for this specialized financing was nonexistent before Airbnb’s meteoric rise in the wake of the 2008 global financial crisis. As investors rushed to convert long-term rentals into STRs, many discovered that their projected net operating income (NOI) wasn’t being accepted by their lenders, because banks continued valuing properties based on long-term lease assumptions.

The issue was: the same qualities that made STRs attractive to investors also introduced new risks for lenders. Income depended on nightly bookings rather than fixed lease agreements, leaving cash flow exposed to seasonal dips and black swan events like the COVID-19 pandemic. The STR model also placed greater emphasis on business skills such as operations and marketing — skills that most landlords hadn’t necessarily needed before. On top of that, the constant specter of shifting regulations loomed. So lenders continued to underwrite all residential rentals as if they were long-term rentals, valuing them based on long-term income rather than short-term earning potential.

This created a mismatch between investor net operating income (NOI) forecasts and lender underwriting assumptions. Over time, that gap became a growing market opportunity. By the late 2010s, forward-thinking lenders began rolling out new loan programs tailored to both the risks and opportunities of the short-term rental market.

How Airbnb loans work

At their core, Airbnb loans are really just a specialized type of Debt Service Coverage Ratio (DSCR) loan. If you’ve ever applied for a DSCR loan before, most of the mechanics will feel familiar.

DSCR loan quick review

With a traditional conforming mortgage, lenders base approval primarily on your personal finances — your income, employment history, and your debt-to-income (DTI) ratio. DSCR loans flip that model. Instead of analyzing your earning potential, they look at the property’s income potential. Specifically, they measure the DSCR, which is a ratio equal to the property’s annual net operating income (NOI) divided by the debt service payments the loan will incur annually.

You’ll still likely have to provide some standard documentation: property details, your credit history, and sometimes additional financials — but the main factor determining approval is the extent to which the property is capable of generating income to cover the loan payments.

How Airbnb loans differ from DSCR loans

Where Airbnb loans stand apart from DSCR loans is in how lenders measure and mitigate risk. Because the short-term rental market is more volatile than the traditional rental market, lenders typically tighten the screws a bit compared to their regular products — though specifics vary by state and lender. This typically means:

Higher minimums: Airbnb loans usually require stronger fundamentals to qualify. Expect higher minimum credit scores, higher minimum DSCR thresholds, and often higher cash reserve requirements.
Lower maximums: On the flip side, lenders often set stricter caps on how much they’ll lend. Loan-to-value (LTV) and loan-to-cost (LTC) maximums are typically lower than what you’d see on a standard DSCR loan, reducing leverage.
Different DSCR calculation: The biggest shift is how NOI is calculated. Traditional DSCR loans base income projections on long-term rental market rates. Airbnb loans use short-term rental market data instead. This is often pulled from third-party analytics tools like AirDNA or Mashvisor. That way, underwriting reflects actual nightly rate and occupancy expectations rather than conventional lease comps.

Are Airbnb loans worth it?

It depends. At first glance, Airbnb loans might look less appealing. The terms are tighter and the underwriting stricter; that’s how the lenders offset the additional risk. The tradeoff is that even though the DSCR ratio may need to be higher, it’s often easier to achieve because of the difference in the DSCR calculation.

Still, that doesn’t mean special Airbnb loans are always the best option for short-term rentals. If a property can qualify for a standard DSCR loan — using conventional lease comps — then you’re likely better off going that route, even if you’re planning on using the property as an Airbnb. Airbnb loans are most valuable when a property wouldn’t qualify under a traditional DSCR product but still shows strong potential as a short-term rental.

Kendal James, The Close

Airbnb loan providers at a glance

Ready to shop for an Airbnb loan? You’ll want to consider lenders who truly understand the STR income model and explicitly offer DSCR or income-based underwriting for short-term rentals.

My current favorite providers of Airbnb loans are:

Here’s a quick comparison of how their products stack up.


Minimum Credit Score	660	700	660	680
Minimum DSCR	1.0	1.0	0.75	1.0
LTV	75%	85%	80%	75%
Fixed Term Lengths Available	30 year	30 year & 40 year	30 year	30 year
Loan Size	$75,000 to $2.5 million	$100,000 to $3.5 million	$100,000 to $2 million	$50,000 to $3 million
Underwrites Using STR Data?	Yes	Yes	Yes	Yes
	Visit Lima One Capital	Visit Host Financial	Visit Quickline Capital Partners	Visit OfferMarket

Looking for something else? Try out a DSCR loan provider instead. Terms may be better if you’re sure you can manage the payments, even if you’re handling an STR. Check our roundup of the best DSCR lenders for some options.

Frequently asked questions (FAQs)

No, your mortgage approval doesn’t override local rules. You will need to comply with city STR ordinances, zoning, licensing/registration, HOA or condo bylaws, and platform policies. To ensure your investment doesn’t hit a dead-end, confirm local requirements first — like minimum stays, primary-residence rules, night caps, and host registration — before closing or listing.

Most Airbnb loan providers look for a credit score of at least 660-680. Stronger credit may give you better terms, but DSCR lenders typically weigh the property’s income potential more heavily than your personal finances.

Yes. If you currently own a property operating as an STR, refinancing into an Airbnb-specific loan may allow you to qualify for a higher loan amount by recognizing your short-term rental income instead of long-term rental assumptions.

No. At this time, only a small niche of DSCR-focused lenders actively market Airbnb or STR-specific loan programs.

Final Thoughts

Airbnb loans fill an important gap in the financing landscape for today’s real estate investors. Traditional lenders have been slow to adapt to the realities of the STR model, but specialized DSCR-based loan products now give investors a way to leverage the higher income potential of platforms like Airbnb and VRBO.

For investors who can qualify for a traditional DSCR loan, that route often delivers better terms; but when a property’s real strength lies in its short-term rental potential, Airbnb loans may be the best (or only) path forward. As with any financing decision, the key is matching the loan product to your investment strategy.