CalculateRealEstateROI

Airbnb · Guide

Financing STR Properties

Most residential lenders ban STR — DSCR + commercial fills the gap.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Many conventional lenders ban STR.
  • DSCR allows STR with income docs.
  • Commercial 5+ units treats as hotel.
  • Down payment 20–25% typical.
  • Rate 75–125 bps over LTR.

Core concepts

Conventional limits

Occupancy clause often violated by STR.

DSCR for STR

Documented STR income qualifies.

Commercial

5+ rooms = hotel underwriting.

Step-by-step framework

  1. 1Pre-qual STR-friendly lenders.
  2. 2Provide AirDNA + comp data.
  3. 3Close.
  4. 4Verify lender allows STR in writing.

Common mistakes to avoid

  • Hiding STR intent.
  • Using LTR lender.

Frequently asked questions

Conventional with STR allowed?

Rare.

DSCR rate premium?

75–125 bps.

Down payment?

20–25%.

Commercial threshold?

5+ rooms.

Action checklist

  • ☐STR-friendly lender.
  • ☐Written approval.
  • ☐Documentation pack.

More from Airbnb Investing

Airbnb Investing Best Practices
Regulation, design, and pricing discipline determine STR success.
Common Airbnb Mistakes
Most STR failures trace to ignored regulation, weak design, or amateur operations.
Beginner's Guide to Airbnb Investing
First STR — regulation, design, and ops basics.
Advanced Airbnb Strategy
Portfolio operations, dynamic pricing optimization, and brand-building for STR operators.
Airbnb Resource Center
Tools for STR underwriting, regulation, and market selection.
STR Regulation Diligence
City code, HOA, lender, and tax — all four must permit STR before you buy.