Refinance scenario
Refinancing a short-term rental on the income it actually earns
Short-term rentals do not have a twelve-month lease to point to, so lenders need another way to measure rent. Some use your booking history; others rely on an appraiser’s short-term rental analysis or a third-party market data report. Matching your property to the right method can change the outcome.
Who this fits
- Owners of vacation and short-term rentals operated purely as investments
- Investors converting a long-term rental to short-term, or the reverse
- Hosts who bought with short-term financing and now want a long-term loan
How short-term rental income gets counted
Lenders generally start from gross income and may apply an expense or vacancy factor, because short-term rentals carry costs a long-term lease does not: cleaning, platform fees, furnishings and utilities. The method and the factor vary by program, which is why the same property can produce different DSCR results with different lenders.
Seasonality matters too. A strong summer does not represent a full year. Records that cover every season give an underwriter less reason to discount your income.
Records worth gathering
- Monthly payout statements from each booking platform
- A year-over-year income summary if you have more than one year
- Local short-term rental permit or registration, where required
- Insurance that specifically covers short-term rental use
- Association rules, for condos or planned communities
We are a mortgage broker. We arrange and shop financing from wholesale lenders; we do not lend our own money. Business-purpose loans on non-owner-occupied investment property only.
How it works
Four steps, no surprises
Gather history
Platform payout reports and monthly income, ideally covering a full year of seasons.
Choose the method
Actual history, appraiser analysis or market data: we find programs that use the method that represents you best.
Check local rules
Permits and zoning matter. Lenders may ask for proof the use is allowed.
Shop and close
We compare programs that are comfortable with short-term rental income.
Questions
Common questions
Can I refinance a short-term rental I have owned for only a few months?
Possibly. Some programs use an appraiser’s market analysis instead of booking history, so a full year of income is not always required. Expect the method to affect leverage.
Does it matter if my city restricts short-term rentals?
Yes. If local rules limit or prohibit the use, lenders may decline to count short-term income. We ask about permits early.
Can I use the property myself part of the year?
We only arrange business-purpose loans on non-owner-occupied investment property. Personal use can conflict with that, so discuss your plans with us candidly before applying.
Next step
Bring us the loan you have. We will show you the loans you could have.
Share your current balance, rent and maturity date. A Loan Daddy loan specialist will compare what wholesale lenders can offer for a business-purpose refinance and walk you through the trade-offs, without pressure.