Short-term rental loans: sized on nightly income, after the lender's haircut.

Yes. Many DSCR lenders finance Airbnb and VRBO properties and qualify them on short-term rental income instead of your personal income. On a purchase they usually rely on a projection such as AirDNA; on a refinance, 12 months of actual bookings. Terms are tighter than on a long-term rental — Lima One, for example, caps STR purchases at 75% loan-to-value with a 700 minimum credit score.

DSCR stands for debt service coverage ratio: the property's monthly income divided by its monthly payment of principal, interest, taxes, insurance and HOA dues. On a short-term rental, the income is booking revenue or a projection, often after a haircut. At 1.00 the income exactly covers the payment; at 1.25 it's 25% more. The STR minimums we found published ran 1.20–1.25, above the 1.00 most long-term programs accept.

They take annual gross revenue from booking history or a projection, may apply a haircut, divide by 12 and compare the result with the full monthly payment, including taxes, insurance and HOA dues. Haircuts we found ranged from none for professional hosts to 25% for newer hosts at Easy Street. Some lenders skip short-term data and use the appraiser's long-term market rent instead.

Plan on 700 for the widest choice. Lima One's short-term rental program lists a 700 minimum, while long-term DSCR programs mostly start at 620–680, and Easy Street's rental program, which also covers short-term occupancy, starts at 640. Below 700, expect fewer programs and, at many lenders, lower leverage, so ask how your score changes the maximum loan-to-value before you write an offer.

The smaller of two numbers: the lender's LTV cap — 75% of value on a purchase at Lima One — and the largest loan the counted income covers at the minimum DSCR. On a $450,000 house grossing $58,035 a year, a 25% haircut and a 1.20 minimum support about $338,900 at 7.75% over 30 years, almost exactly the $337,500 cap. Without the haircut, income stops being the limit.

Work it backward from the payment. Multiply the monthly payment by the minimum DSCR, divide by the share of income the lender counts, multiply by 12 and divide by your nightly rate. On a $3,013 payment, a 25% haircut and $265 a night, a 1.00 minimum needs about 182 booked nights (50% occupancy) and 1.20 about 218 nights (60%). Use the projection's nightly rate, not your best weekend.

Not always. Easy Street, for example, lists no STR history requirement. Experience changes how your income is counted, though. Easy Street counts 100% of the AirDNA projection for professional hosts — a successful STR in the same market or three or more nationally — while newer hosts can see the projection discounted or be underwritten on long-term market rent.

Somewhat. Published terms are tighter line by line: Lima One wants 700 credit and caps leverage at 75% on a purchase and 70% on a cash-out, against the 80% and 75% common on long-term rental programs. The STR DSCR minimums we found ran 1.20–1.25 instead of 1.00, and LendingOne's STR rate range was 7%–10% against 7%–9% for its average investor loan.

Yes, at some lenders. Lima One lists interest-only and balloon structures on its STR loans. Interest-only lowers the payment, which raises the DSCR — from 1.20 to 1.31 on a $337,500 loan at 7.75% with $595 of monthly taxes and insurance. You pay down no principal, though, and when a 10-year interest-only period ends and the loan amortizes over 20 years, the payment rises by about $590 a month.

Not for a full-time rental. Second-home loans carry occupancy rules. Under Fannie Mae's guidelines you must occupy the home for part of the year, keep exclusive control of it and not place it under a management agreement that controls who stays there, and rental income can't be used to qualify. A property you rent out full-time is an investment property and needs an investment loan.

Usually 20–25%. Lima One lends up to 75% of value on STR purchases, so 25% down; Easy Street's general purchase limit is 80%. If the DSCR comes in thin after the lender's haircut, the usual fix is a larger down payment, which lowers the monthly payment and raises the ratio on the same projected income.

Often, yes. Furnished stays of 30 days or more sit between a lease and nightly bookings, and some programs cover them: Easy Street's rental program lists long-term, mid-term and short-term occupancy. Ask which income the lender will count — 30-plus-day leases, booking history or market rent. Mid-term stays can also fall outside city STR rules; New York City's registration law, for example, covers stays under 30 days.

Yes, but at fewer lenders. A condotel is a condo unit in a building run like a hotel, usually with an on-site rental program. Because condotels are non-warrantable, they fall outside standard condo lending. Defy and Angel Oak list condotels as eligible on their DSCR programs. Before you apply, read the rental-program agreement to see what share of gross revenue the operator keeps.

Expect it. Fannie Mae requires a short-term rental to be legally permitted, including local registration and licensing, and DSCR lenders such as Griffin require a market that allows STR use. Local rules differ sharply: Arizona cities can require a permit but cannot ban STRs, while New York City requires registration for stays under 30 days and bars platforms from processing unregistered bookings.

The loan stays the same; your income doesn't. You still owe the full payment, and if the house can only rent on a 12-month lease the numbers can turn negative. Easy Street says long-term rent is generally about half of STR earnings — $2,418 a month on a house grossing $4,836, a 0.80 DSCR on a $3,013 payment. Check long-term rent before you buy, and weigh a shorter prepayment penalty.

Yes. Lenders typically underwrite a short-term rental refinance on 12 months of actual booking revenue. Leverage is lower than on a long-term rental: Lima One caps STR cash-out at 70% of value, against 75% on its long-term rental loans. Have a full year of platform or manager statements ready, and check the seasoning rules on our cash-out refinance page.