Short-term rentals in Washington are usually financed with a DSCR loan, which qualifies the property on its rental income instead of your personal income. Some DSCR lenders accept short-term rental income from booking history or market data. A second-home loan is another option when you'll use the property personally and rent it only occasionally, under that lender's occupancy rules.
Ways to finance a short-term rental
- DSCR loan. Qualifies on the property's income. Some lenders accept 12 months of booking history or a short-term rental market report instead of a long-term lease.
- Conventional investment loan. Uses your personal income and tax returns, with rental income documented on your returns.
- Second-home loan. For a property you personally use. Lenders limit rental arrangements on second homes, so this fits only occasional renting.
Check local rules first
Washington cities and counties regulate short-term rentals differently, including permits, caps and owner-occupancy requirements in some places. Confirm the property can legally operate as a short-term rental before you count on that income.
From someone who runs them
Kristen has operated profitable short-term rentals. She can talk through occupancy, seasonality and cleaning and management costs along with the loan, so the financing matches how the property actually performs.
Short-term rental income guidelines vary by lender. DSCR loans are business-purpose loans for investment properties only.
Common questions
Can I qualify for a loan using Airbnb income?
Yes, with some DSCR lenders that accept booking history or market rent data for short-term rentals. Conventional loans generally need the income documented on your tax returns.
Can I use a second-home loan for an Airbnb?
Only for limited rental use. Second-home loans carry occupancy and rental restrictions, so a property bought mainly to rent is usually financed as an investment property.