How short-term rental income is counted
A long-term rental has a lease. A short-term rental has a calendar. Wholesale lenders that work with STRs generally use one of a few approaches: trailing booking statements from the platforms you list on, a market-rent analysis prepared for short-term use, or an appraiser’s opinion of long-term market rent as a conservative fallback.
Which approach applies can change the loan size significantly. A property that looks thin on a long-term rent estimate may look strong on twelve months of actual bookings. Part of shopping the loan is finding the program whose income method fits your evidence.
What strengthens an STR cash-out file
- A full year (or more) of platform payout statements showing seasonality
- Clear separation between the property’s income and any other properties you operate
- Proof the property is permitted for short-term use where local rules require it
- Adequate insurance written for short-term rental use
- Reserves that reflect the uneven months, not just the average
Local rules can change the math
Many cities and counties regulate short-term rentals, and those rules change. Wholesale lenders may ask about permits, zoning or HOA restrictions before they will count STR income. If a property could lose its short-term status, expect underwriting to lean on long-term rent instead. Know your local rules before you plan around STR income.
Broker, not lender. We arrange and shop business-purpose financing from wholesale lenders. Program guidelines, leverage limits and terms vary by lender and change over time; nothing on this page is a commitment to lend.
Common questions
Can I refinance a vacation rental with a DSCR loan?
Yes, if it is a non-owner-occupied investment property. If you use the property personally as a second home, it does not qualify for the business-purpose programs we arrange.
What if my STR has less than a year of history?
Some programs will use a short-term market rent analysis instead of trailing bookings. Others will use long-term market rent. Shorter history usually narrows the options, but does not always eliminate them.