DSCR Loans for Short-Term and Long-Term Rental Properties

A DSCR loan lets you qualify based on what the property earns, not what you make at your job. No W-2 required. No personal income analysis. If the rental income covers the debt, the loan works.

We do these in Oregon, Washington, and Colorado for both short-term rentals and long-term rentals — 1-4 unit properties and condos.

The STR Income Advantage

Most lenders either can’t do short-term rental DSCR at all, or they default to long-term rental income estimates on the appraisal — which significantly undersells the property in markets where STR earns two or three times what a long-term tenant would pay.

We use an AirDNA report on the back end to document actual STR income for the market. That means we know what income we can use before the appraisal even happens. The appraisal is then just for value — not income.

That’s a big deal in places like Sunriver, Hood River, Bend, Sisters, and along the Oregon Coast, where STR rates are high and LTR comps either don’t exist or don’t reflect what the property actually earns. The same applies in Washington — Cle Elum, Leavenworth, Lake Chelan — and in Colorado markets like Steamboat Springs, Breckenridge, Telluride, and Estes Park, where purchase prices are high and STR income is the only way the math works on a DSCR qualification.

If you’ve been told a lender can’t get the income to pencil, it’s usually because they’re using the wrong income number.

How DSCR Works

DSCR stands for debt service coverage ratio — it’s the relationship between what the property earns and what the loan costs per month. A ratio of 1.0 means income covers the payment exactly. Higher is better. Lower affects your loan-to-value and rate.

DSCR requirements and how they affect your terms vary by lender. We work with multiple lenders so we can match your property and numbers to the right fit rather than forcing everything through one program.

One Thing Worth Knowing Upfront — Prepayment Penalties

DSCR loans typically come with prepayment penalty options ranging from none to several years. Your choice of prepayment penalty directly affects your rate — it’s one of the first conversations we’ll have. There’s no wrong answer, but it should be an informed one.

Property Types

– Single family (1 unit)
– 2-4 unit multifamily
– Condos
– Short-term rentals (Airbnb, VRBO, and other platforms)
– Long-term rentals

If your property type is unusual or you’re not sure it qualifies, send it over and I’ll tell you straight.

Markets We Work In

Oregon: Bend, Sunriver, Sisters, Hood River, Cannon Beach, Lincoln City, Seaside, Newport, Mt. Hood, the Oregon Coast, and anywhere else in the state.

Washington: Cle Elum, Leavenworth, Lake Chelan, the Cascades, and statewide.

Colorado: Steamboat Springs, Breckenridge, Telluride, Estes Park, Vail, Durango, and statewide.

If it’s in Oregon, Washington, or Colorado, we can do it.

Common Questions

Do I need a W-2 or tax returns to qualify?

No. DSCR loans qualify based on the property’s rental income, not your personal income. There’s no W-2, no tax return analysis, and no personal debt-to-income calculation.

What DSCR ratio do I need to qualify?

Requirements vary by lender. A ratio of 1.0 means income covers the payment exactly — higher ratios generally improve your terms. Lower ratios are possible with some lenders but affect your loan-to-value and rate. We’ll run the numbers on your specific property before anything else.

Can I use Airbnb or VRBO income to qualify?

Yes. We use an AirDNA report to document projected STR income for the market, which means the appraisal only needs to establish value — not income. This is the key difference in high-STR markets where long-term rental comps don’t reflect what the property actually earns.

What property types qualify?

Single family, 2-4 unit multifamily, and condos. Both short-term and long-term rentals.

What states do you do DSCR loans in?

Oregon, Washington, and Colorado.

What’s a prepayment penalty and do I have to take one?

A prepayment penalty (PPP) is a fee for paying off the loan early — typically if you sell or refinance within a set window. Options range from no PPP to several years. Choosing a longer PPP typically lowers your rate. There’s no wrong answer — it depends on your exit timeline — but it’s one of the first things we’ll talk through.

How is this different from a conventional investment property loan?

Conventional investment loans require full income documentation and use your personal debt-to-income ratio. DSCR loans skip all of that — qualification is based entirely on the property’s income vs. its debt payment. That makes them especially useful for investors with multiple properties, the self-employed, or anyone whose tax returns don’t reflect their actual financial picture.