- Once short-term rental income is in the file, 1.0 is the usual floor. FundLoans, Newfi, Pennymac and Temple View require it even though their long-term rental programs go to 0.8 or below.
- AirDNA reports have pass marks. Carrington, ACC and Plaza want a market score of 60 or more and at least three comparables; Carrington also wants projected occupancy of 50% or more, and A&D won't use a projection below 60% occupancy.
- Leverage runs 65–80%. Carrington and Pennymac cap STRs at 70% (Carrington 65% on a cash-out); Newfi, Acra and ACC allow 75% on a purchase; A&D allows 80% combined LTV.
- Reserves run 3–12 months of PITIA, and Newfi asks for 9 months whenever the AirDNA occupancy estimate is below 60%.
- Lenders check legality. FundLoans wants third-party proof the municipality allows STRs and, on a refinance, the permit or registration. In Nashville, a sale voids the seller's permit.
Short-term rental loan requirements start where ordinary DSCR requirements stop. Credit, a down payment and a ratio of income to payment still apply, but a lender counting nightly bookings adds rules on the income report, the property, the market and the law. This page collects what lenders' guidelines, matrices and bulletins said in 2025–2026. The math that turns bookings into qualifying income is covered in a separate guide. Everything here applies to investment property only; a getaway you'll also use yourself calls for a residential mortgage.
The checklist at a glance
| Requirement | Typical published rule | Examples |
|---|---|---|
| Minimum DSCR | 1.0 on STR income | FundLoans, Newfi, Pennymac, Temple View |
| Income evidence | AirDNA report with pass marks, appraiser's STR analysis or 12 months of statements | Carrington, ACC, Newfi |
| Income haircut | 20–25% off gross | 20% at FundLoans, Carrington, Newfi; 25% at A&D |
| Maximum LTV | 65–80% | 70% Carrington, Pennymac; 80% A&D |
| Loan size | Up to $2–3 million | FundLoans, Acra, A&D |
| Credit score | 640–700 | 640 at Acra; 700 at Lima One |
| Experience | Rental ownership, not hosting | FundLoans, Newfi, Plaza |
| Reserves | 3–12 months of PITIA | Newfi, Pennymac, A&D |
| Property | Size, acreage and unique-home limits | Pennymac, A&D, Newfi |
| Condotels | Specialist lenders, 65–75% LTV | FundLoans, A&D, Acra, ACC |
| Legality | Proof the city allows STRs; permit on a refinance | FundLoans, eLEND, Pennymac |
| Insurance | Rent-loss coverage; city liability minimums | FundLoans, Plaza; Scottsdale |
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Minimum DSCR: 1.0 once STR income is in the file
Many long-term DSCR programs go below 1.00 or offer no-ratio loans. Use short-term rental income and those options mostly disappear: FundLoans requires at least 1.0 on STR income and bars it from its no-ratio program. Other lenders that publish the rule match it:
| Lender (document date) | With STR income | Long-term rental floor |
|---|---|---|
| FundLoans (August 26, 2026) | 1.0, and loans under $2 million | No-ratio program available |
| Newfi (August 3, 2026) | 1.0, at up to 75% LTV | 0.8 |
| Pennymac (October 22, 2026) | 1.0, at up to 70% LTV | 0.75, or no ratio |
| Plaza programs 2–4 (December 2025–January 2026) | 1.0 | 0.75–1.0 by program |
| Temple View Capital (October 30, 2026) | 1.0 | 0.75 |
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A high ratio doesn't always buy a better rate: Newfi withholds its pricing improvement for a DSCR of 1.25 or more when STR income is used. And because the ratio is computed after the haircut, 1.0 on 80% of gross revenue means gross bookings must cover the payment 1.25 times.
Income evidence: the AirDNA report has its own pass marks
On a purchase: projections that must clear a score
Lenders that accept a projection set minimums on the report itself, and several order it themselves: Carrington and Plaza obtain the AirDNA report, and Newrez's comes from its account executive. Run your own to preview the numbers, but the lender's version governs.
- Carrington (bulletin effective August 6, 2026): an AirDNA Rentalizer with at least three comparable STRs in the same ZIP code, occupancy of 50% or more and a market or submarket score of 60 or more, plus the appraiser's own estimate from at least three STR comparables that accounts for seasonality and occupancy. Income is the lowest of 80% of each source.
- Newfi (August 3, 2026): a market or submarket score of 60 or better, or a submarket score of 50 with rental demand or rental growth at 60 or higher. Occupancy must be at least 40%, and below 60% you need 9 months of reserves.
- ACC Mortgage (September 1, 2026): a 12-month forecast dated within 90 days of the note date, occupancy limited to two guests per bedroom, three comparables and a market score of 60 or more.
- A&D Mortgage (July 1, 2026): 75% of the AirDNA estimate, only on purchases and only if the projected occupancy is 60% or higher; otherwise 75% of an appraiser's rent schedule built from STR comparables.
- FundLoans: an appraisal or appraisal-company STR report showing its data source, comparables, daily rates, occupancy and seasonality, plus the seller's latest 12-month platform or manager statement.
On a refinance: 12 months that identify the property
- Pennymac requires a full 12-month history and uses the lower of the appraisal's figure and actual income, verified through a manager or a platform such as Airbnb or VRBO.
- FundLoans takes the lesser of a 12-month manager or marketplace statement and 12 months of bank deposits identifiable as STR income. ACC accepts platform statements naming the unit, or bank statements for a one-property owner; ACC and Deephaven also want proof the listing is live.
- Carrington treats an STR without 12 months of documented rents as an unleased property, and raises its cap from 70% to 75% LTV when the history comes from the property manager's records.
- A&D won't count STR income on a refinance if the property is under a long-term lease, and eLEND accepts STR income on refinances only.
Leverage and loan size: 65–80% of value
| Lender (document date) | Purchase | Rate-and-term refinance | Cash-out refinance |
|---|---|---|---|
| Carrington (August 2026) | 70% | 70% | 65% |
| Pennymac (October 22, 2026) | 70% | 70% | 70% |
| Newfi (August 3, 2026) | 75% | 75% | 75% |
| Acra (October 23, 2026) | 75% | 70% | 70% |
| ACC Mortgage (September 1, 2026) | 75% | 70% | 70% |
| A&D Mortgage (July 1, 2026) | 80% combined LTV | 80% | 80% |
| eLEND (September 16, 2026) | STR income not allowed | 5 points below standard | 5 points below standard |
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Loan caps are looser: FundLoans allows STR loans up to $2 million, Acra's and A&D's programs run $100,000 to $3 million, and eLEND caps every DSCR loan at $1 million. Leverage is what costs cash. On a $500,000 purchase, 70% and 80% are $50,000 apart.
Credit and experience: rental ownership, not hosting
Published credit floors for STR income ran from 640 at Acra to 700 at Lima One. Experience rules matter more. FundLoans allows STR income only for an experienced investor: someone who has owned or managed rental real estate for at least 12 of the last 36 months. Newfi limits STR income on a purchase to experienced investors and lets newer ones use it only on a refinance with real booking history. Plaza's program 2 bars first-time investors from STR income. None of these documents asks for prior hosting; time as a long-term landlord counts.
Reserves and insurance
- Newfi: 3 months of PITIA up to $1.5 million, 6 above that, 9 above $2 million, 6 for newer investors, and 9 whenever AirDNA occupancy is under 60%.
- FundLoans: 6 months on the subject property, 12 for first-time investors.
- Pennymac: 3 months up to $500,000; 6 months from $500,001 to $2 million.
- A&D: 3 months up to $1 million, 6 up to $2 million, 12 above.
- Rent-loss insurance: FundLoans requires coverage equal to 6 months of PITIA on non-owner-occupied property, Plaza 6 months, and Pennymac 6 months of local average rent. A&D doesn't require it.
- Liability minimums come from cities, not these lenders: Scottsdale requires $500,000 per property, directly or through the platform.
Property rules: what kind of STR qualifies
- Unit count: Plaza's program 2 allows STR income on one-unit homes and condos only, not 2–4 units.
- Rural and acreage: Newfi takes rural property only on long-term rent or actual STR earnings, with a 10% LTV cut, and caps acreage at 5, as does ACC. A&D allows 10 acres for one-unit rural homes at a 680 score; Pennymac excludes rural property.
- Size: Pennymac excludes single-family homes under 700 square feet, A&D homes under 500 and FundLoans under 400.
- Unique homes: geodesic domes and other “unique” properties are ineligible at FundLoans, Newfi, Pennymac and A&D, and the first three also exclude log homes.
- Commercial features: Carrington won't lend on an STR altered in a way that affects its residential character, such as a parking lot or reception area.
- Active listing: Newfi wants a newly placed STR staged and listed on a platform; FundLoans wants proof it's actively marketed.
Condotels and non-warrantable condos
Condotels, condo units inside a hotel operation, have the shortest list of lenders. Pennymac and Newfi list them as ineligible, and eLEND excludes all non-warrantable condos. Specialists that do lend set rules on the unit and the project as well as the loan:
| Lender (document date) | Leverage | Loan cap | Unit and project rules |
|---|---|---|---|
| FundLoans (August 26, 2026) | 75% purchase, 65% refinance; 700 credit; $250,000 cash-out cap | $1.5 million | 500+ square feet and a bedroom; full kitchen; no mandatory rental pool; no full-time front desk, concierge or daily cleaning; project must hold a hotel or resort rating |
| A&D Mortgage (July 1, 2026) | 75% purchase to $1 million, 70% to $1.5 million; 65% refinance; 660 credit | $1.5 million | 500+ square feet, full kitchen and separate bedroom; no “motel” in the name; no mandatory pooling; not rural; at most 20% of units in a project of over 10 |
| Acra (October 23, 2026) | 75% purchase, 70% rate-and-term, 65% cash-out; 5 points less in Florida; 1.0 DSCR | Program cap $3 million | Not published in the summary |
| ACC Mortgage (September 1, 2026) | 75% purchase, 65% refinance | $1.5 million | Not published in the matrix |
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Check the rental-pool rule first: if every owner must rent through the hotel's program, FundLoans and A&D won't lend however strong the numbers are. Angel Oak takes condotels only on its DSCR program and excludes lock-out units. Non-warrantable condos without hotel features are easier: FundLoans goes to 75% and $1.5 million with one entity owning up to 50% of the project, and Acra to 80% on a purchase.
Permits and licences: the lender checks, the city decides
Several lenders now verify legality rather than assume it. FundLoans requires third-party documentation, from a vendor such as Property Guard or Vrolio, that the municipality allows STRs, and on a refinance the license or registration, or the appraiser's word that none is needed. eLEND's appraiser must show no city, county, HOA or code-enforcement restrictions. Pennymac requires the use to be legally permitted and common for the area. A&D has you sign an STR addendum and excludes Vermont and New York City's five boroughs, condotels aside. What the city allows can change:
| Market | Can an investor run one? | What to check |
|---|---|---|
| Nashville | Not in residential zones. Non-owner-occupied permits were confined to multifamily zones in 2018 and removed from those on January 1, 2022. | Since November 2024, a change in ownership voids the permit; the buyer reapplies under current rules. No new permit within 100 feet of a school, park, religious institution or daycare. |
| Austin | Yes. Licensed STRs became an accessory use to residential uses in every zoning district in 2025. | Up to two STR units per single-family site; a new license costs $736.60; platforms must remove unlicensed listings on request since July 1, 2026. |
| San Diego | Yes, with a Tier 3 license (Tier 4 in Mission Beach). A host may hold one license. | Tier 3 is capped at 1% of housing units: 807 licenses left on October 23, 2026, none in Tier 4. $1,170 for two years; two-night minimum stay. |
| Chicago | Not in single-family homes or 2–4 unit buildings, which must be the host's primary residence. In 5+ unit buildings, up to a quarter of the units or 6, whichever is less. | City registration; the building can't be on the Prohibited Buildings List or in a restricted residential zone; six sleeping rooms at most. |
| New Orleans | Not unattended. Residential permits are non-commercial: one per square by lottery, one property per owner, and the operator must live on site while guests are there. | $500 owner permit and $150 operator permit; commercial STRs go through conditional-use review. |
| Honolulu | Only in resort-zoned areas and a few mapped apartment areas, or with a pre-1986 nonconforming use certificate. No new certificates are issued. | Registration through the city is required for a legal STR. |
| Maui County | Vacation rentals in apartment districts are being phased out under Bill 9, approved December 15, 2025: from 2029 in West Maui and 2031 elsewhere. | Lawsuits challenging the phase-out were filed in December 2025. A separate rezoning resolution would let about 4,500 units continue. |
| Dallas | Uncertain. The city's 2023 rules barring STRs from single-family districts are tied up in litigation brought by an STR owners' group. | The Texas Supreme Court granted the city's petition for review on October 23, 2026 and set argument for December 3, 2026. |
| Scottsdale and Arizona | Yes. State law bars cities from prohibiting STRs. | $250 annual city license per property, $500,000 liability coverage, a state tax license and county assessor registration before renting. |
| Florida | Generally yes. State law bars local bans and limits on rental duration or frequency, except local rules adopted on or before June 1, 2011. | The preemption covers local laws, not condo or HOA rules, so read the covenants. |
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A permit you're buying isn't always one you'll keep, and caps and court cases move. Get the license status in writing before your inspection period ends, and price the deal on long-term rent as a fallback wherever rules are in flux.
Worked example: one cabin, three rulebooks
You're buying a $500,000 mountain cabin in a county that allows STRs. The AirDNA Rentalizer projects $69,600 a year, or $5,800 a month, at 58% occupancy, with a market score of 64 and four comparables in the same ZIP code. The appraiser's STR analysis comes in at $5,500 a month. Taxes are $400 a month and STR insurance $275. You have a 740 score and have owned two long-term rentals for three years. The rate is an illustrative 7.75% over 30 years; LendingOne put STR loan rates at 7% to 10% in September 2026.
| Feature | Carrington | Newfi | A&D Mortgage |
|---|---|---|---|
| Maximum LTV | 70% | 75% | 80% |
| Loan | $350,000 | $375,000 | $400,000 |
| PITIA | $3,182 | $3,362 | $3,541 |
| AirDNA report | Passes: 3+ comps, 50%+ occupancy, score 60+ | Passes; occupancy under 60% triggers extra reserves | Can't be used: occupancy under 60% |
| Qualifying income | $4,400 (lowest of 80% of each estimate) | $4,640 (80% of the AirDNA estimate) | $4,125 (75% of the appraiser's STR rent) |
| DSCR | 1.38 | 1.38 | 1.17 |
| Down payment | $150,000 | $125,000 | $100,000 |
| Reserves | Per its matrix | $30,254 (9 months) | $10,622 (3 months) |
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The 58% occupancy figure changes the deal at two of the three lenders. At Newfi, it adds six months to the reserves, $20,169 more than the 3 months a loan this size would otherwise need. At A&D, it knocks the projection out entirely, so the loan qualifies on the appraiser's number with a larger haircut and a thinner ratio. Down payment plus reserves still comes to the least at A&D, $110,622, against $155,254 at Newfi. Check the AirDNA occupancy against each lender's cut-off before you choose: two points of occupancy can move tens of thousands of dollars.
Before you make an offer
- Confirm the use is legal: zoning, permit path, any cap or lottery, and whether a sale voids the permit.
- Read the HOA or condo covenants, and for a condotel, the rental program agreement.
- Check the AirDNA market score, comparables and occupancy against the cut-offs above.
- Check size, acreage, rural and unique-home exclusions.
- Run the DSCR on 75–80% of projected revenue, then on long-term market rent.
- Budget 20–35% down, up to 9–12 months of reserves and rent-loss insurance.
- If you've never owned a rental, ask whether the lender allows STR income for first-time investors before you pay for an appraisal.