Short-Term Rental Loans

Short-term rental loans provide attractive financing terms for investment properties.

Banks and traditional mortgage lenders are typically reluctant to offer short-term rental loans to investors.

Solving a need to finance short-term rentals, Mindful Money has lending solutions for borrowers who want to purchase rental properties to list on platforms, such as VRBO and Airbnb.

Buying an Investment Property for Vacation Rentals 

Instead of staying in luxury resorts or hotels, many travelers enjoy the comfort and convenience of renting an entire house.

Investors who purchase properties for short-term rental opportunities often install high-end amenities, such as in-ground pools, jacuzzis, hot tubs, movie rooms and game rooms.  

Everyday, essential items are also stocked within most short-term rentals.

Renters can expect a full array of kitchen cookware and bathroom items, too.

Debt Service Coverage Ratio

DSCR loans are purely for properties that are income producing and non-owner occupied. 

Unlike a traditional mortgage, a debt service coverage ratio loan uses income that a property generates versus a borrower’s personal earnings.

Therefore, a borrower’s tax returns, W-2’s or pay stubs are not required to get approved for a short-term rental loan.

As a non-qualified mortgage loan (Non-QM), a DSCR loan does not adhere to traditional underwriting guidelines. 

However, the property’s income projections must cover its debts. 

Short-Term Rental Financing

Financing is available for investment properties and for short-term rentals.

Mindful Money offers short-term rental financing in Arizona, California and Colorado.

Schedule a call with Samantha Cooley today to discuss financing for income-producing properties.