Your booking history
Most programs average the last twelve months of your booking platform statements. Some count only part of that average, to allow for the costs of running a nightly rental.
Short-term rental loans
Short-term rental loans: finance a nightly rental on its booking income.
A DSCR loan on a house, condo or two-to-four-unit property let by the night or week through a booking platform, based on the income it brings in rather than your personal income. No tax returns or pay stubs; credit, assets and the appraisal are still checked. For business purposes only: never your own second home.
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- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
What would you like to do?
Pick the one closest to you. A few short questions follow, and a licensed loan officer gets back to you.
- Refinance a short-term rental I run
- Buy a property to let short-term
- Take cash out of a short-term rental
Ready for the full application? Apply online
Fidelity Residential · NMLS #103098 · Equal Housing Lender
- Direct, licensed lenderNMLS #103098. Check our licences on NMLS Consumer Access.
- Booking income countsNo tax returns or pay stubs for the income.
- Houses, condos and two to four unitsLet by the night or week through a booking platform.
- A licensed loan officerA real person compares programs for your property.
The basics
How a short-term rental loan works
A short-term rental loan is a DSCR loan on a house, condo or property of one to four units that you let by the night or week. Like any DSCR loan, it is based on the property’s income compared with its full monthly payment, including taxes, insurance and any association dues, instead of on your tax returns. Because nightly income is seasonal and costs more to run, programs count it differently from a lease.
On a refinance, most programs average the last twelve months of your booking statements, and some count only part of that average. On a purchase, where there is no history yet, some programs accept a projection, from the appraiser’s short-term rent analysis or a data provider’s forecast that meets occupancy and market tests, often counted at a discount; other programs use the long-term market rent only.
The most you can borrow against the value is usually a little lower than with a long-term lease, the property must be allowed to be let short-term where local rules require it, and it may never be used as your own second home, even for part of the year.
Who it suits
- Hosts refinancing a rental they already run, with a year of booking statements to show
- Investors buying a property to let short-term, with experience running one or owning rentals
- Owners taking cash out of a short-term rental for business purposes
- Investors who hold title in a company, with the owners giving a personal guarantee
Not for a vacation home you will use yourself, even part of the year, or for a building of five or more units.
Booking income
How short-term rental income is counted
Each program has its own way of turning nightly bookings into a monthly figure. These are the main rules.
A projection, where allowed
Some programs accept a projection: the appraiser’s short-term rent analysis, or a data provider’s forecast that meets occupancy and market tests, often counted at a discount. Others use the long-term market rent only.
Income against the payment
The counted income is compared with the full monthly payment. A ratio of one or more is the usual floor; a few programs want more, and a few allow less. The most you can borrow against the value is usually a little lower than with a long-term lease.
Run the DSCR calculatorPermitted to let short-term
Where local rules require a permit or licence for nightly rentals, the property must have one. Several programs ask for a third-party report confirming it.
Running a rental
On a purchase, most programs want you to have run a short-term rental or owned rentals before. One program considers first-time investors on tighter terms.
Investment property only
A short-term rental financed this way may not be used as your own second home, even for part of the year. You sign business-purpose and occupancy statements saying so.
Business purpose investor loans are for investment property only. Short-term rental income is not counted on buildings of five or more units; those are financed on our five to ten unit loans on their long-term rent, and it is not counted in a portfolio rental loan either.
Requirements
Short-term rental loan requirements: what the programs ask for
The booking income replaces your personal income, not the rest of the file. Each figure below is the most lenient term of one of the programs we use; they do not all apply to the same loan, and the terms for your property depend on your file.
- The property. A house, condo or property of one to four units let by the night or week. Its short-term rental income can support the loan.
- Income on a refinance. Most programs average the last twelve months of booking statements; some count 80% of them.
- Income on a purchase. Some programs accept a projection, an appraiser’s short-term rent analysis or a data provider’s forecast that meets occupancy and market tests, often counted at 80%; others use long-term market rent only.
- The ratio. A ratio of 1.00 or more is the usual floor with short-term rent; a few programs want 1.15 to 1.25, and a few allow less.
- Loan-to-value. Usually five points lower with short-term rent than with a lease; up to 85% exists on one program with no reduction, with a 740 score on loans to $1.5 million.
- Credit. Scores from 620 with short-term rent on one program.
- Loan amounts. Up to $4.5 million with short-term rent on one program, at 70% of value.
- Experience. Experience operating a short-term rental, or owning rentals, is usually required on a purchase; one program considers first-time investors with a 700 score.
- Local permission. The property must be legally permitted for short-term letting where local rules require it; several programs ask for a third-party report.
- Occupancy. A short-term rental financed this way may not be used as your own second home, even part of the year. You sign business-purpose and occupancy statements.
The figures above were checked on 12 October 2026 against the programs we use and will be reviewed by 12 November 2026. They are program limits, not an offer, a rate or a loan decision; programs change their terms without notice, and the terms for your property depend on credit, the income, the appraisal and underwriting review. Business purpose investor loans are for investment property only.
How it works
The steps to a short-term rental loan
Tell us about the property
The address, the units, whether you already let it short-term, how you will hold title, and whether you are buying, refinancing or taking cash out. No income documents.
Credit, assets and experience
We check credit for each borrower or guarantor, you send statements for the down payment, closing costs and reserves, and you tell us about the rentals you run or own.
The income and the appraisal
On a refinance you send your booking statements; on a purchase, where the program allows it, a short-term rent analysis or forecast is ordered. The appraiser values the property, and we work out the ratio from the counted income and the full monthly payment.
Permission, sign and close
Where local rules require it, you show the property may be let short-term. You sign the business-purpose and occupancy statements and, for a company, a personal guarantee. Then underwriting, title, insurance and closing.
Documents
What documents you need
No tax returns or pay stubs. Most hosts and investors can start with these.
- Booking platform statements for the last twelve months, on a refinance
- Bank or investment statements for the down payment, closing costs and reserves
- Your purchase contract, when you are buying
- A permit or licence, or a third-party report, where local rules require one
- A list of the rentals you run or own, where the program asks about experience
- Company documents if a company will hold title
- Photo identification for each borrower or guarantor
Questions
Common questions about short-term rental loans
Can I use the property myself part of the year?
No. A short-term rental financed this way is investment property and may not be used as your own second home, even for part of the year. You sign a statement saying so. For a vacation home you will use yourself, see financing a second home.
I am buying and have no booking history. Can the income still count?
In some programs, yes: they accept a projection from the appraiser’s short-term rent analysis or a data provider’s forecast that meets occupancy and market tests, often counted at a discount. Other programs use the long-term market rent only. A loan officer can tell you which applies to your property.
How is my booking history counted on a refinance?
Most programs average the last twelve months of your booking platform statements, and some count only part of that average. The result is compared with the full monthly payment, as on any DSCR loan.
Is the maximum loan lower than for a long-term rental?
Usually a little lower against the value, because nightly income is seasonal. One program makes no reduction for stronger files. The figures are in the requirements above.
Does my town have to allow short-term rentals?
Where local rules require a permit or licence, the property must have one, and several programs ask for a third-party report confirming it. Check your local rules before you buy.
Do I need experience running a short-term rental?
On a purchase, most programs want you to have run a short-term rental or owned rentals before. One program considers first-time investors on tighter terms. On a refinance of a rental you already run, your booking history is the main thing.
Can a company hold title?
Yes. Title can be in your own name or in a company such as a limited liability company. The owners give a personal guarantee.
Can I finance a building of five or more units let short-term?
No. Short-term rental income is not counted on buildings of five or more units. Those buildings are financed on their long-term rent: see our five to ten unit loans.
Is there a prepayment penalty?
Many DSCR loans have a prepayment penalty in the first years, where the law allows one, and options without one exist. Your loan officer explains the choices before you decide.
Do you lend in my state?
Fidelity Residential is licensed in many states. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999. Business purpose loans follow their own list of states, and local short-term rental rules vary by city; a loan officer can confirm both for your property.
Have a property in mind?
Get a quote, apply online, or talk the deal through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, property, rent and underwriting review and are subject to change without notice. Business purpose investor loans are for investment property only.
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