FINANCING FOR AIRBNB AND VRBO INVESTMENTS
Short-Term Rental DSCR Loan
Investor with a performing AirBnB and a lender that will only count a long-term lease. On Castor's wholesale AirBnB lending program, Prime PLUS uses the short-term rents with a documented 12-month history of rents received, via bank statements or a management company ledger, and takes no LTV reduction for it.
What Is a Short-Term Rental Mortgage?
Castor Financial's Short-term rental mortgage program accepts income from AirBnB and VRBO toward DSCR qualification, with a documented 12-month history of rents received via bank statements or a management company ledger. Prime PLUS applies no LTV reduction for short term rents. Expanded requires a 1.15 minimum DSCR, a 720 minimum FICO and a 5% LTV reduction.
Why Brokers
Choose Castor
For Short-Term Rental Loans
Ledger or Bank Statements
PRIME PLUS
Twelve months of short term rental history documented through bank statements or a management company ledger from AirBnB or VRBO.
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Interest-Only Options
PRIME PLUS, PRIME, EXPANDED
Twelve months of personal or business statements still work for a borrower carrying a bankruptcy, foreclosure or short sale seasoned as little as 24 months.
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AirDNA on Purchases
EXPANDED
No operating history on the subject because the borrower is buying it? AirDNA data establishes the rental income. Minimum 60% occupancy rate, qualifying at 80% of annual revenue divided by 12.
Property Types Far and Wide
PRIME
Just a 5% haircut Prime DSCR reaches SFR, 2-4 units, condos, co-ops, modular homes, condotels to 75% LTV, and rural properties up to 20 acres, property types most Non-QM shops won't touch. When short term rents are used to calculate DSCR, the only adjustment is a 5% max LTV reduction
Program Names | Max Loan Amount | Min FICO | Max LTV |
|---|---|---|---|
Prime | $3,000,000 | 680 | 75% (5% reduction) |
Prime PLUS | $2,500,000 | 660 | 80% (no STR reduction) |
Expanded | $2,500,000 | 720 | 75% |