Short-Term Rental Loans

Two ways to count the rental income, and having both is the point

AirDNA Rentalizer uses short-term rental market data for the specific property. It is the better method when a house earns far more nightly than it would on a twelve-month lease.

Form 1007 is the appraiser’s comparable rent schedule. It is the better method when long-term comps are strong or short-term data is thin.

A Grayton Beach house can gross well in season and appraise weakly for long-term rent, or the reverse. Having both methods available means the property gets measured the way it actually earns. Most lenders offer one. A buyer declined elsewhere on a 1007 number may work fine on Rentalizer and have no idea that option exists.

Rentalizer also works on a property with no rental history, so a house that has only ever been someone’s beach place can still qualify on projected income.

DSCR in plain language

Debt Service Coverage Ratio is the property’s income divided by its mortgage payment. Above 1.0 means the property covers itself.

A 1.00 ratio with a 720 credit score gets you to 15% down. The property covering its own payment exactly is enough. It does not have to clear a cushion above it.

The program floor is a 620 credit score, with 3 months of reserves and a maximum loan amount of $3 million. LLC title vesting is available if holding the property in an entity fits how you are structuring your investments.

The selling point, stated plainly: no tax returns and no personal debt-to-income calculation. For an investor who already carries several mortgages, that is often the difference between qualifying and not.

No-ratio DSCR, when the property income does not have to work at all

If your credit and equity are strong enough, the ratio comes off the table entirely. At a 720 credit score you can go to 75% loan-to-value with no ratio requirement. At 700, 70%.

This is the section to pay attention to if you are buying a seasonal beach property. A Gulf Coast house that cash flows beautifully in July and sits empty in February can struggle on a ratio test. No-ratio sidesteps that problem entirely if you have the down payment.

Where we lend on the coast

Florida panhandle: Destin, Fort Walton Beach, Santa Rosa Beach, Grayton Beach, and Panama City.

Alabama Gulf Coast: Gulf Shores, Orange Beach, Fairhope, Daphne, and Dauphin Island.

Beach condos routinely fail warrantability on rental ratios, reserves, insurance, or single-entity ownership, and most lenders simply decline them. We place non-warrantable condos, reviewed case by case rather than against a fixed checklist. If you have been turned down on a project, send it to us.