How to Finance an Airbnb or Short-Term Rental in 2026 (Without Tax Returns)

The Short Answer

You finance an Airbnb the same way you finance any rental in 2026 — with a DSCR loan that qualifies on the property’s income, not yours. For a short-term rental, the lender uses projected or actual STR revenue (often from an AirDNA market report or a 12-month operating history) instead of a long-term lease, so there are no tax returns and no W-2s.

How STR Income Is Underwritten

Long-term DSCR loans use the lease or market rent. STR loans normalize the seasonal, higher-gross short-term revenue into a stabilized monthly figure, then divide by debt service to get the DSCR. Two paths:

Projected income — an AirDNA (or appraiser 1007/short-term addendum) estimate for a property without a track record.

Actual income — your own 12 months of booking history, which usually qualifies for better terms.

A 1.0–1.25+ DSCR on the normalized number is the typical target. Vacation markets, urban apartments, and luxury properties all qualify.

What You Need

20–25% down (up to ~80% LTV on purchase).

660+ FICO for the best execution; lower is workable.

Reserves (typically 6 months of payments).

An LLC is fine — most investors close in an entity.

Where STR Deals Break

Regulatory risk is the real diligence item: confirm the city/HOA permits short-term rentals before you fall in love with the pro forma. Lenders will, too.

The 818 Advantage

818 is a direct lender — we make the credit decision and fund on our own paper, then keep the same human underwriter from intake to wire. Most deals close in 14–21 days.

Running an STR scenario? Submit it here for a real answer within two business hours, or see recently funded STR deals.