Get Financed for the Revenue Your Property Actually Earns
Traditional mortgage lenders don't know what to do with STR income. STR-specialized lenders use your property's actual rental income — not your W-2 — to qualify you.
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One of the biggest barriers to STR investing is finding a lender who understands the asset class. DSCR (Debt Service Coverage Ratio) loans and vacation rental mortgages evaluate your property on its income potential — not your personal income — making them the preferred financing vehicle for most STR investors.
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Conventional mortgages have strict limits on how many investment properties you can finance and require extensive personal income documentation. DSCR loans bypass most of that — they qualify the property based on its income, allowing investors to scale a portfolio far more quickly.
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STR-specific lenders have proliferated since 2020. The best ones have underwriters who understand the difference between a vacation rental's seasonal revenue pattern and a traditional rental's stable monthly income — and can structure loans accordingly.
The criteria behind every VaultSTR ranking
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DSCR threshold
Minimum debt service coverage ratio required. Lower thresholds (1.0x vs. 1.25x) provide more flexibility for seasonal properties.
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STR income calculation
Do they use AirDNA projections, actual history, or bank statements? Lenders who accept projections are essential for new acquisitions.
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Interest rates and points
Relative to the market benchmark for investment property loans. DSCR loans typically run 1–2% above conventional rates.
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Portfolio lending
Can they finance multiple properties simultaneously? Blanket loans and portfolio programs accelerate portfolio scaling.
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Geographic coverage
State restrictions and lending footprint. Some DSCR lenders are licensed in only a subset of states.
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Speed to close
Ability to close in 2–3 weeks is a genuine competitive advantage in markets where timing determines whether you get the deal.
Top picks compared — find your fit
VaultSTR's ranked recommendations
1st
Easy Street Capital — Best Overall
The most STR-friendly lender in the market. No minimum DSCR requirement, rates starting at 5.75%, and underwriting that actually understands short-term rental income. If you are buying a property specifically for STR, start here.
2nd
Kiavi — Best for Speed
14-day close times and a fully digital application process make Kiavi the fastest option when you need to move quickly on a deal. DSCR and fix-and-flip products both available, with competitive rates for well-qualified borrowers.
3rd
Griffin Funding — Best for Flexibility
Non-QM DSCR loans that accept STR income projections — not just traditional rental comps. Flexible qualification criteria make this the go-to for operators whose income profile doesn't fit a conventional lending box.
Common questions answered
DSCR stands for Debt Service Coverage Ratio — it measures the property's income relative to its debt payments. A DSCR of 1.0x means the property earns exactly enough to cover the mortgage. Most lenders require 1.0x–1.25x. The key advantage is that the property's income — not your personal income — is the primary qualifier.
It depends on the lender. Some will accept AirDNA or Rabbu projections for new acquisitions. Others require 12 months of actual rental history. If you are buying a new-to-STR property, focus on lenders who accept projection-based underwriting.
Yes — typically 1–2% higher than a primary residence mortgage. The trade-off is flexibility: no personal income documentation, no W-2 requirements, and the ability to finance properties that conventional lenders won't touch.
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