Managing an Airbnb property has become increasingly prevalent as travelers frequently seek more relaxed and inexpensive accommodations while on vacation. Some even argue that buying a property to rent on Airbnb is one of the best ways to invest in real estate. The toughest part? Finding vacation rental loans.
Fortunately, we work with various lenders who are happy to provide short term rental loans to investors looking to place their properties on sites such as Airbnb and VRBO. LONG TERM FINANCING ON SHORT TERM RENTALS
We provide vacation rental loans for real estate investors Nationwide. We offer Airbnb lending on single family loans, 2-4 units and 5+ multi-family properties.
OVERVIEW
680+ Fico – 1.25x Qualifying at IO Payment
30-year fixed rate long term financing. (ARM’s available as well)
No income verification, or tax returns required.
DSCR Calculated on Interest Only with Interest Only Loans
Purchase, Rate & Term or Cash Out
Rates will vary: Email us today!
VACATION RENTAL LOANS | THE DETAILS
LLC’s, Corporations, and LP’s Only
Loan Amounts 1-4 unit properties $75K- $2M. Max $5M for 5+ multi-family properties.
Underwriting-> We use AIRDNA to determine daily booking rates for DSCR calculations. Properties must be B-Market Grade.
30 Year Fixed, ARM and Interest-Only options.
Typical max 75-80% LTV on Purchases and 65-75% on Refinances
Lending Area- Nationwide except-> MN,SD,ND,VT,AL,CA,OR,AZ,UT,OR,ID,NV
Provide necessary short term rental compliance permit. (If required in that city)
Each state/city will have different laws for Airbnb’s, for ex. some cities like Austin TX require the property to be a primary residence.
SHOULD YOU BECOME A SHORT-TERM RENTAL INVESTOR?
As Airbnb mortgage brokers we have seen on average that short term rentals tend to yield a higher gross income than traditional rent. Short term rentals as a strategy by itself does not generate a higher income. It is highly dependent on the real estate investor ability to:
Find a property in an attractive location where tourist would like to visit and stay.
Being able self-manage or hire a third-party manager able to handle the constant turn over and provide exceptional customer service.
Being consistent; ability to get good reviews and become a superhost.