Short-Term Rentals

Get the sourcing paperwork right early and the loan-amount conversation moves fast; get it wrong and the file stalls on a letter-of-explanation loop.

Resort real estate is a different animal than a workforce rental three blocks from a hospital. The tenant is a vacationer, not a lease-signer.

Add reserves, a credit floor, and proof the association actually allows nightly rentals, and you have the full picture.

It works less well on properties with plenty of income cushion, where the investor would rather build equity than lower the payment.

Get that stack right and the loan is priced off a track record, not a guess.

Investors shopping a $1M luxury short-term rental usually walk in assuming the math works the same way it did on their last $400,000 duplex. It doesn’t.

Short-term Rental DSCR Loan Requirements When Permit Limits Apply — Permit legality gets checked before rental income ever enters the math.

DSCR loans are designed for non-owner-occupied investment properties.

Loan amounts on this property type typically top out around $1,500,000, with leverage capped tighter than a standard rental.

Two independent appraisals replace one. Reserve math gets stricter for first-time investors.

Credit, reserves, entity paperwork, and — above a certain size — a second appraisal round out the file.

Reserves typically run six months of PITIA on the subject property, doubling to twelve if the investor has no prior landlord history.