What DSCR do I need for an Airbnb investment loan in 2026?

The hard floor at most STR-friendly DSCR lenders is 1.0 — your property income must at least equal annual debt service (PITIA: principal, interest, taxes, insurance, HOA). However, 1.25 is the threshold for best pricing and standard 20-25% down terms. STR-specific programs often require a 1.10-1.15 minimum because of seasonality and vacancy risk. A DSCR above 1.5 unlocks the most favorable terms — lower rates and faster underwriting — though sub-80% LTV remains the cap for STR (no STR DSCR lender offers 90% LTV regardless of DSCR strength).

What are the typical DSCR loan rates for Airbnb in 2026?

As of April 2026, DSCR loan rates run 6.12-7.99% for well-qualified standard DSCR borrowers. STR-specific programs add a 0.25-0.75 point premium to compensate for vacancy and seasonality risk, putting actual STR DSCR rates in the 6.5-8.75% range. The total premium versus a conventional investment-property mortgage is roughly 0.75-2.25 points. A 740+ FICO with 1.50+ DSCR and 25% down typically lands at the bottom of that range; a 680 FICO at 1.10 DSCR with 20% down lands near the top.

How does AirROI calculate DSCR?

AirROI computes DSCR two ways, side by side: Investor DSCR (NOI ÷ Annual Debt Service, using P&I only) for true cash-flow coverage, and Lender DSCR (Gross Annual Rent ÷ Annual PITIA) — the formula 1-4 unit DSCR lenders actually underwrite on. Both numbers are derived from 50 comparable properties in your market with verifiable Airbnb listing IDs, plus your inputted purchase price, down payment, rate, taxes, insurance, and HOA. Every input is transparent and adjustable, which is the same documentation level a DSCR underwriter wants to see.

Can I use projected Airbnb revenue for a DSCR loan application?

Yes — DSCR lenders accept three documentation pathways for STR income: (1) 12 months of actual booking history from the property's PMS or Airbnb dashboard, (2) third-party revenue projections from tools like AirROI or AirDNA, and (3) the appraiser's Form 1007 long-term rent schedule as a conservative fallback. Lenders typically apply a 10-25% haircut to projection-based income to buffer against vacancy and seasonality, then take the higher of the three sources. AirROI's projection — with the underlying 50 comparable listings visible — provides the reviewer-friendly documentation underwriters prefer.

What credit score and reserves do DSCR lenders require?

Most DSCR lenders require a 620 FICO minimum, though 660-680 is the practical floor for competitive pricing. The tier breaks: 620-679 (qualifies but premium pricing), 680-699 (standard pricing), 700-739 (good pricing, ~0.25% better), 740+ (best pricing, another 0.25-0.50% off). Cash reserves of 3-6 months PITIA are standard; jumbo loans (>$1.5M) require 6-12 months. Sub-1.0 DSCR exceptions need 6-12 months. Reserves stack across financed properties — a 6-property portfolio needs liquid reserves for all six PITIA payments.

How long does a DSCR loan take to close?

DSCR loans typically close in 21-30 days, versus 45-60 days for conventional investment-property mortgages. The compression comes from skipping personal income verification — no W-2s, tax returns, or DTI calculations. The bottleneck shifts to the appraisal (Form 1007 rent schedule for STR or Form 1004 for conventional) and the lender's reserves verification. Investors competing on time-sensitive deals often choose DSCR specifically for this speed advantage.

What is the difference between DSCR and DTI?

DSCR (Debt Service Coverage Ratio) qualifies you based on the property's projected income. DTI (Debt-to-Income Ratio) qualifies you based on your personal income and debts. DSCR loans suit investors scaling beyond 4-10 properties, self-employed borrowers, or anyone whose tax returns understate true cash-flow capacity. Fannie Mae allows up to 10 financed properties under DTI rules, but properties 5-10 require 25% down, 6 months reserves on every property, and 720+ FICO — making DSCR the practical pathway after the fourth or fifth property.

Can DSCR loans be used for cash-out refinance and BRRRR?

Yes. DSCR is one of the most common vehicles for the refinance leg of BRRRR (Buy, Rehab, Rent, Refinance, Repeat). Cash-out DSCR refis typically cap at 75% LTV (vs 80% for purchase), require a seasoning period of 6-12 months on the title, and use the post-rehab appraisal value. Watch for prepayment penalties — most DSCR loans carry a 5-4-3-2-1 stepdown PPP (5% of balance in year 1, declining annually). Accepting a PPP usually buys down your rate by 0.25-0.50%, but penalizes early refi or sale.

How can I improve my DSCR to qualify for better loan terms?

Three levers: (1) Increase revenue — optimize pricing, improve listing quality, add high-margin amenities. AirROI's comparable data shows what the top decile in your market earns, your roadmap to a higher DSCR. (2) Reduce operating expenses — self-manage to save 20-25% (the typical PM fee), shop insurance, negotiate cleaning. (3) Increase down payment — a larger down payment lowers debt service directly. The marginal gain narrows above 30% down, so the sweet spot for most STR deals is 25%. Use AirROI's worksheet to model the trade-off across all three levers in real time.

DSCR Calculator for Airbnb 2026: Free STR Loan Qualifier