Short Term Rental Loan

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If you’re looking to finance a short-term rental property, we have you covered with a DSCR loan. West Forest Capital is a leading DSCR rental loan provider, offering fast, flexible funding for real estate investments up to $3 million.

What is a Short Term Rental Loan?

A short term rental loan gives investors access to financing for Airbnb, VRBO, and other vacation rental properties. At West Forest Capital, we provide these loans through the DSCR loan program. Instead of requiring W2 income or tax returns, DSCR loans qualify based on the property’s ability to generate rental income. That means investors can secure funding quickly, often closing in two to three weeks, with terms available for up to 30 years.

Eligible Properties for Short-Term Rental Loans

Airbnb and VRBO rentals

Vacation homes

Executive Rentals

Condos in resort or urban markets

Single family homes used as short term rentals

Duplexes or small multifamily units operated as vacation rentals

Why Use a DSCR Rental Loan For Your Short-Term Rental

You own your own business. Running a business often comes with high expenses and unpredictable income. Even if your company earns significant revenue, your personal finances might not reflect that stability. Because a DSCR loan relies on the property’s expected cash flow instead of your personal income, it’s a strong option for business owners.
You have imperfect credit. To qualify for a DSCR rental loan, the underlying customer metrics, such as FICO score, are less important than the actual asset – your rental property. Typically, if your FICO is in the mid-600s or above, we can work with you.
You prefer a fast approval process. DSCR rental loans have a much faster approval process (2-3 weeks) than traditional loans, allowing investors to secure financing quickly and take advantage of investment opportunities as they arise.
You want flexible repayment terms. DSCR rental loans come with flexible repayment terms. This can be especially beneficial for investors who have multiple rental properties and need to manage their cash flow effectively. Examples of options are a 30-year fixed rate or a 5/1 ARM (which simply means the rate is fixed for 5 years and then resets every year going forward; there are also 7/1 ARMs, and so on).

DSCR Loan Requirements for Short Term Rentals

Property must be a condo, single-family residence, duplex, triplex, quadplex, or multi-family dwelling
Must be an investment property, not a primary residence (vacant land and primary residences do not qualify)
Property cannot require rehabilitation
Property must be held under an LLC (or transferred to an LLC upon closing)
Insurance and taxes must be current
Typically requires a minimum credit score at or above 600

West Forest Capital: Your Short Term Rental Loan Provider

At West Forest Capital, we provide financing that’s built around your property’s income potential, not your personal income. As a private lender, we specialize in DSCR loans that qualify short term rentals based on their ability to generate net operating income (NOI) above the property’s debt service. Whether you’re purchasing your first Airbnb or adding another vacation rental to your portfolio, our team moves quickly to get you funded.

Frequently Asked Questions: Debt Service Coverage Ratio DSCR Rental Loans

How do your DSCR loans work for short term rentals?

We qualify your property based on its short term rental income compared to the debt service. For Airbnb, VRBO, and other vacation rentals, we can use actual or projected income to secure short term rental financing without relying on personal income.

What is the minimum DSCR ratio required for a DSCR rental loan?

The minimum DSCR ratio is typically around 1.1x. To calculate it, your net operating income is divided by the annual mortgage debt. Net operating income is the rental income minus expenses like taxes and insurance, while the annual mortgage debt includes principal and interest payments.

What types of short term rental properties do you finance?

We provide loans for vacation homes, Airbnb and VRBO rentals, executive rentals, condos, duplexes, and other properties that perform well in the short term rental market.

Do you require personal income or tax returns to qualify?

No. We base our approval on the property’s cash flow, not your W2s, tax returns, or debt-to-income ratio. This makes our program especially attractive for investors building short term rental investments.

How quickly can you close on a short term rental loan?

Our team moves faster than traditional banks. We can often close in as little as two to three weeks once your down payment and documents are ready.

What is the maximum loan amount you offer?

We finance short term rental properties up to $3 million, giving you flexibility to grow your portfolio and maximize short term rental income.

Do you work with foreign investors?

Yes. We regularly provide short term rental financing for foreign investors who want to purchase or refinance properties in the United States.

What documentation is required to apply for a DSCR rental loan?

Documentation usually includes rent rolls, property income statements, and credit reports. At West Forest Capital, we sometimes also request personal financial statements, though the emphasis remains on the property’s ability to cover its annual mortgage debt.

Is there a down payment required for short term rental loans?

Yes. We require a down payment for all short term rental financing. The exact amount depends on the property and loan structure, but many investors put down between 20 to 25%.

Are there prepayment penalties?

Prepayment terms can vary. In some cases, we do offer loans with no prepayment penalty.