Key Takeaways

• Entrepreneurs increasingly invest business profits into Airbnb rentals for passive income and diversification.
• DSCR loans qualify borrowers based on property cash flow, not personal income or tax returns.
• Top Airbnb lenders include Ridge Street Capital, Easy Street Capital, Griffin Funding, Lima One Capital, and New Silver.
• Key loan factors include DSCR thresholds, LTV ratios, credit scores, and lender flexibility on projections.
• Stress-test deals, review local regulations, and plan exit strategies to protect your Airbnb investments.

At SMBCEO, we regularly explore how business owners can deploy capital from their business cash flow into high-performing investments. In recent years, a notable trend has emerged: many entrepreneurs are channeling profits from their businesses into real estate, specifically short-term rentals like Airbnb.

According to CleverProfits, many entrepreneurs are reinvesting their business profits into real estate for “cash flow, tax benefits, and appreciation,” positioning rental properties as a secondary income engine. Similarly, a Venture Magazine report notes that “owning real estate, especially rental properties, creates a steady cash flow that doesn’t rely on daily business operations.” These insights underscore how small business owners are increasingly treating real estate as a strategic diversification and an alternative to traditional stocks and bonds.

However, financing these Airbnb or short-term rental investments often presents challenges for entrepreneurs. Conventional mortgage lenders tend to shy away from self-employed borrowers with non-linear income or significant tax write-offs that reduce reported earnings.

That’s where DSCR loans for Airbnb come in. Instead of relying on personal income verification, these loans are underwritten based on the property’s rental cash flow. In other words, the property’s projected Airbnb income can qualify the property for financing without the borrower’s W-2 or tax returns.

This guide breaks down what to look for in an Airbnb lender and reviews the Top 5 Airbnb Lenders for small business owners seeking to turn entrepreneurial profits into real estate wealth.

What Was Considered When Creating This List

When evaluating Airbnb / short-term rental lenders for this list, we used the following criteria:

• Interest Rates – How competitive are their rates relative to other DSCR or non-QM lenders.
• Fees & Costs – Origination, closing, appraisal, servicing, and any hidden fees.
• Track Record / Volume – Experience underwriting short-term rental / Airbnb deals, portfolio size, and success / default rates.
• Customer Experience – Ease of application, underwriting transparency, responsiveness, flexibility, and clarity of terms.

We favored lenders that have demonstrated strength in underwriting rental properties (particularly short-term) and that are willing to work with business owners, not just traditional real estate investors.

Top 5 Airbnb Lenders in the U.S.

Below are five lenders widely known (or strongly positioned) in the DSCR / STR (short-term rental) financing space. Depending on your market and deal, one may fit better than another.

1. Ridge Street Capital

Ridge Street Capital is well positioned in the Airbnb / short-term rental financing niche. They offer financing for purchases, refinances, and cash-out loans based on DSCR on the property. Their underwriting directly accounts for Airbnb / VRBO cash flow (projected gross rental income minus operating costs) rather than relying on conventional rental metrics.

Pros: Deep specialization, clear focus on short-term rental cash flow, low rates, 0% Fee Option

Cons / considerations: As with many niche lenders, availability varies by state

2. Easy Street Capital / EasyRent

Easy Street Capital’s EasyRent program is tailored to cash-flowing investment properties, including Airbnb / short-term rentals. What distinguishes them is their willingness to use AirDNA projections in underwriting (rather than assuming a long-term rental baseline) and their flexibility around seasonal markets.

Pros: Flexible underwriting, considers short-term rental metrics, supports properties up to 10 units, allows properties in rural or seasonal markets

Cons / considerations: LTV caps, credit requirements, and state coverage may limit options in some places

3. Griffin Funding

Griffin Funding offers DSCR / non-QM solutions and allows DSCRs as low as 1.0 in some circumstances for short-term rentals.

Pros: Relatively broad reach, experienced in “non-QM” lending, some flexibility on DSCR thresholds

Cons / considerations: Lower leverage and stricter pricing in some states

4. Lima One Capital

Lima One is a private / hard money lender familiar to many real estate investors. They offer rental (including short-term) financing programs with DSCR underwriting. For short-term rentals in particular, they may require a DSCR around 1.5 and a solid FICO (e.g., 700) to qualify, especially for purchases.

Pros: Established name in real estate lending, many ancillary products, decent underwriting track record

Cons / considerations: Tighter credit and DSCR thresholds make deals in marginal markets tougher

5. New Silver Lending

New Silver is a direct lender focusing on hard money and DSCR loans for real estate investors. Their DSCR loan product is flexible, and they do not always set a strict DSCR floor.

Pros: Good flexibility, direct lender (less middleman), decent options for smaller deals

Cons / considerations: Pricing may be higher, and their short-term rental / Airbnb focus is not always emphasized

Key Metrics & Tips for Entrepreneurs

• DSCR threshold: Many lenders want a DSCR of 1.0, meaning projected net operating income must exceed debt payments.
• Loan-to-value (LTV): Often capped around 80% (sometimes lower for short-term rentals).
• Credit / reserves: Many lenders will still want a credit score (e.g., 700) and cash reserves for vacancy periods or repairs.
• Use of projections / data tools: The best Airbnb lenders allow use of tools like AirDNA or local market comps to justify your income projections (versus assuming long-term rentals).
• State / local market restrictions: Some lenders omit certain states or have restrictions in highly seasonal or rural markets.
• Stress test your deal: Always run conservative revenue estimates (e.g., 20–30% discount off projected) to ensure you can cover debt service during downturns.
• Regulatory risk: Be aware of zoning, short-term rental restrictions, or HOA rules that could disrupt operations.
• Exit strategies: Plan how you might refinance or convert to a long-term rental if the short-term market softens.

FAQs

What is a DSCR loan for Airbnb properties?

A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on a property’s rental income rather than personal earnings.

Why do entrepreneurs use DSCR loans for short-term rentals?

DSCR loans allow business owners with variable income to finance Airbnb investments using projected rental cash flow instead of W-2 income.

Which lenders are best for Airbnb financing?

Top Airbnb lenders include Ridge Street Capital, Easy Street Capital, Griffin Funding, Lima One Capital, and New Silver Lending.

What factors should I consider before choosing a lender?

Evaluate interest rates, DSCR requirements, LTV ratios, credit score minimums, and the lender’s experience with short-term rentals.

Are there risks in financing Airbnb properties?

Yes. Always account for local regulations, potential revenue drops, and plan exit options like refinancing or converting to long-term rentals.

Conclusion

For entrepreneurs looking to transform business profits into passive real estate income, financing Airbnb / short-term rental properties via DSCR loans is a powerful tool. Among lenders, Ridge Street Capital stands out for its specialization, while others like Easy Street, Griffin, Lima One, and New Silver offer interesting alternatives depending on deal structure, credit profile, and market location.