Short-term rentals (Airbnb, VRBO) can generate 2-3x the income of traditional long-term rentals. But financing them has historically been a challenge. Not anymore.
The Short-Term Rental Financing Problem
Most conventional lenders won’t count Airbnb income for qualification. They want 12+ months of lease agreements. This creates a Catch-22: you can’t get financing without rental history, and you can’t get rental history without the property.
The DSCR Solution
DSCR loans solve this by using projected rental income — often based on AirDNA data or comparable STR performance in the area. If the numbers work, the loan works.
What Lenders Look For in STR Deals
- Location: Tourist areas, business travel hubs, event destinations
- Projected income: Based on AirDNA, comparable listings, or actual booking history
- Local regulations: Is STR legal and permitted in the area?
- Property condition: STR-ready or needs renovation?
Hard Hat Capital STR Financing
Our DSCR and Portfolio programs both accept short-term rentals. Min DSCR of just 0.80 — one of the most aggressive in the industry for STR properties.