INVESTOR GUIDE · AIRBNB AND STR
Airbnb, VRBO and STR DSCR loans
How to close using AirDNA income. We can qualify on AirDNA instead of the appraiser’s rent opinion.
The short answer
- Appraisers’ opinions of short-term rental income can vary wildly, and their experience appraising STRs is all over the place.
- We have lenders that qualify on AirDNA data, so the appraiser can focus on value instead of rents.
- It takes three things: rent, value and credit. We know your credit up front, and in some cases we know rents before we even order the appraisal. That leaves only value in question.
THE PROBLEM
The appraiser’s rent number
On a short-term rental, the appraiser’s opinion of what the property will rent for can vary wildly, and appraisers’ experience with STRs is all over the place. When the lender uses that number, a good Airbnb can come out looking like it doesn’t cash flow. Not to mention the 20% haircut many lenders take off short-term rental income.
THE FIX
Qualify on AirDNA
We have lenders that qualify on AirDNA data instead of actual rents or the appraiser’s opinion. That lets the appraiser focus on what they’re there for: value, not rents.
Run your numbers in the STR mode of our DSCR calculator, or see our short-term rental loans.
THE PROCESS
Rent, value and credit: that’s all it takes
We know your credit before we ever go to a lender. When a lender pre-qualifies the rent on AirDNA, the only thing left in question is value. In some cases we know credit and rents before we even order the appraisal.
Once we have all three, rent, value and credit, the rest is easy.
STRAIGHT ANSWERS
Airbnb DSCR loan questions
Can I qualify for a DSCR loan using AirDNA?
Yes. Some lenders qualify short-term rentals on AirDNA projections instead of actual rents or the appraiser’s opinion of rent.
Do lenders take a haircut on Airbnb income?
Yes. Lenders take 20% off gross short-term rental income for cleaning, host fees and supplies, so 80% counts toward your DSCR.
Why use AirDNA instead of the appraisal?
The appraiser’s opinion of short-term rental income can vary wildly. Qualifying on AirDNA lets the appraiser focus on value instead of rents.
KEEP READING
DSCR KINGS · INVESTOR FINANCING
Have an Airbnb deal?
Send us the address. We’ll tell you what the income qualifies for before you apply.
Business-purpose loans for investment properties only; not for owner-occupied homes. Lending guidelines, leverage and loan programs vary by lender and by state and are subject to change. Terms and approval depend on the property, the borrower’s credit and capital-partner guidelines and are not guaranteed. Examples are for illustration only.
