How STR income is counted
Wholesale programs use a few methods. Some average twelve months of actual booking income from your platform statements. Some accept an appraiser or third-party market projection for properties without history. Others fall back on long-term market rent, which can understate a strong vacation property. Which method a program uses can swing the DSCR more than any other factor.
Extra items underwriters look at
Expect a few questions that a long-term rental would not raise:
- Whether local zoning or HOA rules allow short-term rentals
- Any required city or county permit or registration
- Seasonality in your booking history
- Furnishing and management costs, in some programs
- Insurance that covers short-term rental use
Cash-out on a performing STR
A short-term rental with a solid year of history can be a strong cash-out candidate, because the documented income may support a larger loan than long-term rent would. Keep your platform payout reports and a profit-and-loss summary organized; they become the backbone of the file.
Questions investors ask about short-term rental loans
Can I get a DSCR loan on a new short-term rental with no history?
Some programs accept a market-based income projection for properties without booking history. Others require history or use long-term rent instead.
Can I use the vacation rental myself sometimes?
Business-purpose loans are for non-owner-occupied investment property. Personal use as a second home disqualifies the property from what we arrange.
Do local STR rules matter for financing?
Yes. If local rules restrict short-term rentals, many programs will not count nightly income, which can change whether the loan works at all.
Want to test the numbers first? Try the DSCR calculator, or read how much cash you can take out.