You don’t need a W-2 to finance your next cash-flowing property.

Short-term rentals (STRs) — like Airbnbs and vacation homes — are one of the fastest-growing real estate investment categories. But financing them through traditional mortgages can be a headache.

👉 Most lenders don’t know how to underwrite STR income properly, or they require full tax returns and W-2s — making it nearly impossible for self-employed or scaling investors to qualify.

That’s where DSCR loans come in.

These loans let you qualify based on projected or documented rental income — not your personal finances — making it easier to buy high-performing STRs with confidence.

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✅ What Is a DSCR Loan for STRs?

A DSCR loan (Debt Service Coverage Ratio loan) allows you to qualify for an investment property based on its ability to generate income — including short-term rental income.

Rather than evaluating your:

• Personal tax returns
• Pay stubs or W-2s
• Debt-to-income (DTI) ratio

…lenders look at:

• What the property will earn (monthly or annually)
• Whether that income will cover the mortgage and related costs

📘 If the income covers the loan, you’re likely to qualify — even if you have no personal income to show.

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🔢 How Do You Qualify for an Airbnb With a DSCR Loan?

Lenders calculate the DSCR ratio:

DSCR = Gross Monthly Rental Income ÷ PITIA
(PITIA = Principal, Interest, Taxes, Insurance, Association dues)

Most want a DSCR of 1.00+ — meaning the property at least pays for itself.

✅ For STRs, you can qualify using:

• 12-month rental history (if the property is already operating), OR
• Short-term rental projections from tools like AirDNA or local market comps

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💡 Why DSCR Is Perfect for STR Investors

• No W-2s or tax returns required
• Can close in your LLC
• Use Airbnb income projections (even if no tenant is in place yet)
• Buy in vacation markets or urban STR hotspots
• Avoid the strict income verification of conventional loans
• Reinvest faster through cash-out refis on appreciated STRs

📘 DSCR loans are ideal for BRRRR investors, STR flippers, and cash-flow-focused buyers.

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🧠 Example Scenario

Property: 3-bed near a national park
AirDNA projection: $4,800/month gross income
PITIA: $3,200/month
DSCR: 1.50 → ✅ approved

Even if you’re self-employed or have limited taxable income, you can qualify based solely on the property’s performance.

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⚠️ What to Watch Out For

• Most DSCR STR lenders require:
  • 20–25% down
  • 620–680+ credit score
  • A strong rental projection or proven income
• Some won’t accept owner-occupied or second homes
• DSCR rates are higher than traditional — but still worth it when cash flow is strong

💡 Not every lender knows how to structure an Airbnb deal — but we do.

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🏢 Why PRMI?

We help STR investors:

• Use AirDNA or STR projections to qualify for financing
• Close in personal name or LLC with flexible lending structures
• Refi or cash out for new deals quickly
• Navigate licensing, zoning, and market restrictions where relevant

You bring the vision — we’ll fund the cash-flowing vacation property.

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👇 Want to Use a DSCR Loan to Buy Your First (or Next) Airbnb?

We’ll help you qualify based on the property — not your W-2 — and show you how to turn projected income into real leverage.