Traditional Loans for Short-Term Rentals

In this context, “traditional” refers to a full-documentation loan that includes income verification, credit checks, and a standard underwriting process—ideal for borrowers who can document their income and want competitive rates and terms. It’s a solid middle ground between agency loans and private lending.

While DSCR and STR mortgage loans often focus on the property’s income, traditional loans consider your personal financial profile—including credit score, income, and assets. This can help borrowers secure better terms if they qualify based on documentation rather than rental projections alone.

This loan type is well-suited for:

• W-2 earners and self-employed professionals with provable income
• Investors with good credit and liquidity
• First-time STR buyers who want a long-term, stable financing option
• Repeat investors building a portfolio with full-doc options

No. Unlike DSCR loans, traditional loans rely on your personal income and financial documentation. Short-term rental revenue may be helpful in some cases, but it’s not required to qualify.

Traditional loans for short-term rentals typically require a down payment of 15% to 25%, depending on the type of property, your credit profile, and the specific loan program. Whether you're financing a vacation rental, term rental, or another investment property, lenders will evaluate your financials before finalizing the required contribution. While some conventional loans may allow lower down payments for second homes, short-term rental loans classified as investment use often require a higher equity stake.

Our short-term rental loan options cover a variety of property types, including single-family homes, townhomes, condos, and multi-family units up to 8 doors or more. If you're financing a vacation rental, term rental, or mixed-use investment property, we offer flexible solutions. Whether you're applying as an individual or through an LLC, our short-term rental financing is designed to meet your portfolio goals.

Most traditional loans for short-term rentals close in 14 to 35 days, depending on the loan type, documentation, and complexity of the deal. Compared to hard money or private short-term rental financing, this timeline balances speed with strong, stable loan terms.

Yes! We offer short-term rental loans to individuals, LLCs, corporations, and some trusts. If you're purchasing or refinancing a short term rental in an entity, a personal guarantee is usually required for any stakeholder with 20–25% or more ownership.

We offer a wide range of loan terms for short-term rental financing, including 30-year fixed, 40-year fixed, interest-only, and adjustable-rate options like 5/6 or 7/6 ARMs. Our flexible short-term rental loan options are ideal for buyers seeking long-term stability or custom amortization plans for a specific vacation rental or term rental strategy.

Yes, most traditional short-term rental loans have a DSCR (Debt Service Coverage Ratio) requirement of 1.00x or greater, but we also offer options for sub-1.00x DSCR or even no DSCR on a case-by-case basis. These programs are especially useful for real estate investors who are in growth mode or operating in seasonal markets. Unlike other forms of real estate financing that rely solely on rental income, our approach considers both property performance and your broader real estate portfolio. Whether you're refinancing or acquiring a new asset, the flexibility of DSCR requirements can help you scale your real estate holdings strategically. Many of our clients use this program to strengthen their overall real estate investment position while maintaining cash flow. If you're new to real estate investing or looking to expand, we can help structure financing that aligns with your short-term rental goals.