Short-term rental properties on platforms like Airbnb and VRBO can produce significantly higher gross income than the same property on a long-term lease. That income is real, but it is irregular and platform-dependent in ways that make conventional DSCR lenders nervous. A small number of non-QM lenders have built specific programs that accept documented STR income, and this group is growing as the STR market matures.
How STR Income Is Documented
Standard DSCR underwriting uses a 12-month lease or a Form 1007 market rent appraisal. Neither works for STR -- there is no lease, and the 1007 captures long-term rent, not nightly income. STR-capable lenders use third-party market data providers, primarily AirDNA, to document the property's rental income potential. AirDNA produces a market analysis showing average nightly rates, occupancy rates, and projected annual revenue for the subject address. The lender uses this data in place of the 1007.
Lenders That Accept STR DSCR Income
- ✦Acra Lending: AirDNA accepted; 12-month STR history or market data; 620+ FICO
- ✦Angel Oak: Rental AVM tool captures STR income at prequal; 660+ FICO
- ✦Lima One Capital: short-term rental loan with 1.3 minimum DSCR; 700+ FICO required
- ✦New Silver: STR DSCR with AirDNA; 675+ FICO
- ✦Change Wholesale: STR accepted with documented income history; flexible on DSCR floor
- ✦CrossCountry Mortgage Signature Expanded: STR on DSCR program; 620+ FICO
STR-Specific Underwriting Adjustments
Most STR DSCR lenders apply a vacancy and expense adjustment to the AirDNA projected revenue before calculating DSCR. A property projecting $60,000 annually may have an applied occupancy factor of 70-80%, reducing qualifying income to $42,000-$48,000. This is more conservative than using a market rent appraisal on a long-term rental. Some lenders also require the property to have at least 12 months of STR operating history before they will use actual income rather than AirDNA projections.
HOA and Municipal Restrictions
Before originating an STR DSCR loan, verify that short-term rentals are permitted at the property. Many HOAs prohibit rentals shorter than 30 days. Municipal ordinances in high-demand markets restrict STR platforms or require licensing. A lender will ask about STR permissibility and an appraisal will note relevant restrictions. Finding an STR restriction after the loan is in process can kill the deal entirely.
Aria knows which DSCR lenders accept AirDNA and VRBO income, their DSCR minimums, and how they calculate STR qualifying income. Ask at vicariointel.com.
7-day free trial. No credit card required.
Ask Aria to Route This STR DSCR Deal →