1. DSCR Loans — Qualify on Rental Income
If you don't want to use your personal income to qualify, DSCR loans are your best bet. These loans look at the property's projected rental revenue and approve you based on whether the property can cover its own mortgage payment.
2. Conventional Second Home Loans
Planning to use the property as a vacation home too? A conventional second home loan offers lower rates and down payments (as low as 10%) compared to investment property loans. The trade-off: you need to use it personally at least 14 days per year.
3. FHA House Hacking
Buy a multi-unit property (2-4 units) with an FHA loan at just 3.5% down. Live in one unit and rent the others on Airbnb. It's the lowest barrier to entry for first-time investors.
4. Home Equity Line of Credit (HELOC)
If you have equity in your current home, a HELOC can provide the down payment for your Airbnb purchase. This strategy lets you leverage existing assets to enter the STR market with minimal cash out of pocket.
5. Cash-Out Refinance
Already own a property with equity? Refinance and pull cash out to fund your Airbnb down payment. Combined with a DSCR purchase loan, you can scale your portfolio without using personal income documentation.
Part of our comprehensive guide:
The Complete Guide to DSCR Loans for Short-Term Rentals →