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](/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](/apply) for a real answer within two business hours, or see [recently funded STR deals](/closed-deals?type=STR).