Short-term rentals (STRs) like Airbnb and VRBO generate significantly higher income than traditional long-term rentals. Yet, traditional banks refuse to underwrite based on projected STR revenue.
We embrace the short-term rental model. We offer DSCR loans that qualify the property using either 12 months of actual historical STR revenue or projected revenue utilizing data from platforms like AirDNA.
Yes, we can often underwrite the DSCR using 3rd party projection data like AirDNA for properties without history.
Sometimes there is a minor pricing adjustment for STRs compared to long-term rentals, but they remain highly competitive.
Yes, the property must be legally permitted to operate as a short-term rental in its local municipality.
Yes, we can do cash-out refinances up to 75% LTV using the STR income to qualify.
You are still responsible for the fixed monthly payment. We recommend maintaining strong cash reserves.
Fidelity Funding Corp · Direct California private money lender since 2006
450 N Brand Blvd, 6th Floor · Glendale, CA 91203 · Mon-Fri 8AM-6PM PT