Short-Term Rental HELOC
Borrow against a rental you book on Airbnb or VRBO, or use its booking income to qualify. At least one HELOC we offer qualifies on the property’s short-term rent and needs no personal income documents.
How your booking income gets counted
Each program turns booking history into qualifying rent a little differently, and it starts with your deposits.
- At least one DSCR HELOC accepts short-term rental income from services like Airbnb, VRBO, and Flip Key.
- That program looks at your most recent 24 months of bank statements showing short-term rental deposits, plus rental records for the property.
- Gross rents are reduced by 20% to cover costs like advertising, furnishings, and cleaning.
- Months when the property sat vacant count as zero in the average.
- The appraisal includes a Form 1007 or 1025 showing short-term market rents.
- At least one closed-end second applies a 25% vacancy factor to short-term rent instead.
No personal income documents needed
Buy or cash out
Title it in your LLC
Lines up to $3 million
An option with no minimum DSCR
Seasonal swings get averaged out
What A Short-Term Rental HELOC Is
A line of credit or second mortgage on a rental booked by the night, qualified in part or in full on what the property earns.
A short-term rental is a property leased on a nightly, weekly, monthly, or seasonal basis through a service like Airbnb, VRBO, or Flipkey. A short-term rental HELOC lets you borrow against that property, or count its booking income when you qualify. Our options include first-lien lines of credit, a second-lien HELOC, and closed-end second mortgages.
On the DSCR route, the property’s rent qualifies the loan instead of your paycheck. At least one DSCR HELOC requires no income documentation and figures the ratio using the interest-only payment. It is made on investment properties as a business purpose loan.
If you qualify with your own income, short-term rent can still help. At least one first-lien HELOC counts 80% of verified deposits against the rental’s housing payment, and a refinance needs 12 months of short-term rental history. At least one second-lien HELOC accepts short-term rental income on an investment property when it shows on your most recent 2 years of personal tax returns.
Why choose Saxton for a short-term rental HELOC
This page is for owners and buyers of nightly rentals who want to borrow against the property or use its booking income to qualify.
We Check Local Rules First
At least one program will not count short-term rents if state or local rules restrict renting the property on a short-term basis. It also needs the appraisal to confirm the home sits in an established short-term rental market.
We Match Your Paperwork
Some programs read 12 monthly statements or an annual statement from the booking platform. If you own just one rental, at least one program accepts bank statements with deposits clearly sourced as rental income.
Guests Only, Not Family
On the DSCR HELOC, the property cannot be occupied by you, any member of your LLC, or any family member. Every borrower must keep a primary residence.
One Rental Or Many
If you own two or more rentals, at least one program needs statements from the online service to tie the rent to each property. We sort that out before you apply.
We Shop Several Programs
Not every equity program counts short-term rent. At least one DSCR second lien and one 5 to 8 unit DSCR HELOC do not, so we start with programs that do.
We Flag Ineligible Properties
Condotels, bed and breakfast properties, and co-op or timeshare hotels are ineligible on the DSCR HELOC. We tell you up front if your property falls in one of these groups.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers on borrowing against a nightly rental.
Yes. At least one DSCR HELOC accepts short-term rental income from services like Airbnb, VRBO, and Flip Key. It is a first-lien line on an investment property, made as a business purpose loan.
No, not on the DSCR route. At least one DSCR HELOC requires no income documentation and qualifies on the property’s rent. The minimum credit score is 700.
It depends on the program. One DSCR HELOC averages 24 months of deposits, reduces them by 20%, and subtracts any management fee shown on the appraisal. Months the property sat vacant count as zero.
Usually 12 to 24 months. At least one first-lien HELOC needs 12 months of short-term rental history on a refinance, and one DSCR HELOC uses the most recent 24 months of bank statements. If one program cannot document a full 12 months, it treats the property as unleased.
No, not with at least one HELOC we offer. Its guidelines say short-term or seasonal rental income from second homes cannot be used to qualify, and the DSCR HELOC is for investment properties only.
Usually not. Condotels are ineligible on the DSCR HELOC, on at least one second-lien HELOC, and on at least one closed-end second. We cover condotels on a separate page.
Yes. At least one DSCR HELOC allows vesting in an LLC, corporation, or partnership. You still need a 700 minimum credit score and a primary residence of your own.
Find out what you qualify for
Tell us about your short-term rental, its booking history, and how it is titled, and we will check how it fits our programs.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.