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Short-Term Rental DSCR Loan Rates 2026
By Jaken Finance Group · Principal, Jaken Finance Group
Short-term rental DSCR loan rates in 2026 — how STR pricing runs above long-term DSCR, rate add-ons, LTV caps, and a worked PITIA example. Jaken Finance Group.
Investors shopping short-term rental DSCR loan rates in 2026 quickly learn that nightly-rental pricing is not the same as a plain long-term hold. The property may gross twice what a 12-month lease would support — but the rate sheet reflects regulation risk, seasonality, and the income method your lender chooses. Jaken Finance Group writes STR DSCR loans at 5.75%–10.5% APR nationwide; the number you actually receive depends on leverage, credit, DSCR, and whether you qualify on Form 1007 market rent or documented Airbnb income.
Hub: DSCR loans for Airbnb and STR · Qualification overview: DSCR loans for short-term rentals · Model your deal: DSCR calculator
STR vs long-term DSCR — rate comparison (2026)
| Income method | Typical rate band | Max LTV (purchase) | Max LTV (cash-out) | STR add-on |
|---|---|---|---|---|
| Long-term only (1007) | 5.75%–8.50% | 75%–80% | 70%–75% | None |
| Higher-of (1007 or STR) | +0.25%–0.75% | 70%–75% | 65%–70% | Yes |
| STR actuals / AirDNA | +0.25%–0.75% | 70%–75% | 65%–70% | Yes |
| Condo (warrantable STR) | +0.25%–0.75% vs SFR | 70%–75% | 65%–70% | Property + income |
| No-ratio STR | Top of band | 65%–70% | 60%–65% | Higher equity |
Industry data and lender rate sheets in 2026 commonly show a 0.25%–0.75% add-on when STR income drives qualification instead of long-term market rent. That premium is separate from adjustments for credit score, loan-to-value, and sub-1.0 DSCR structures. For how those adjustments stack, see how DSCR loan rates are set.
Standard-profile long-term DSCR market rates often sit in the 6.125%–8.50% range for strong files; STR qualification typically lands 0.25%–0.75% above that baseline before property-type adjustments.
Pricing levers that move your STR rate
Lenders do not publish one flat “Airbnb rate.” Your file moves through a grid of risk factors:
| Lever | Strong file | Weaker file | Rate impact |
|---|---|---|---|
| FICO | 720+ | 620–659 | 0.25%–1.00%+ |
| LTV | ≤70% | 75%+ | 0.125%–0.50% |
| DSCR | 1.25+ | 1.0–1.10 | 0.25%–0.75% |
| Income source | 1007 only | STR actuals | 0.25%–0.75% |
| Property type | SFR | Condo / 2–4 unit | 0.125%–0.75% |
| Reserves | 6+ months PITIA | 3 months | Pricing tier / decline |
| Prepay penalty | 3–5 year PPP | None | −0.25%–0.50% |
Seasonality does not always print as a separate line item, but it shows up in reserve requirements and in how aggressively the lender haircuts gross STR revenue. Beach and ski markets frequently need six months of PITIA in reserves versus three on a vanilla long-term rental — see DSCR down payment and reserves.
Regulation and permits can flip your income method overnight. If the city requires a license you do not hold, many lenders refuse STR actuals and revert to the 1007 — which may remove the rate add-on but can also kill DSCR at your target leverage. Read short-term rental laws for investors before you price the deal on AirDNA alone.
Why STR rates run above long-term DSCR
Short-term rentals earn more per month in strong markets, but lenders price the volatility, not the peak weekend.
- Revenue concentration. A ski cabin may earn 60% of annual gross in four months. Permanent debt is sized on a smoothed annual figure, and lenders stress the off-season.
- Regulatory tail risk. A council vote can cap nights, ban non-owner-occupied STR, or freeze new permits — crushing nightly income while the mortgage payment stays fixed.
- Operating cost variance. Cleaning, supplies, platform fees, and turnover labor do not appear on a long-term lease. Lenders apply 20%–35% expense and vacancy factors on gross STR revenue before dividing by PITIA.
- Narrower investor pool. Fewer secondary-market buyers want STR paper, so specialty lenders price accordingly.
The STR premium is not a penalty for success — it is the cost of underwriting a business inside a residential deed. When the 1007 alone clears 1.0 DSCR at your down payment, the cheaper path is long-term qualification even if you operate nightly after close (where legal). Compare routes in DSCR vs conventional for Airbnb.
Worked example — same cabin, two rate paths
Purchase price: $520,000 · Target loan: $390,000 (75% LTV) · Taxes + insurance: $650/month combined · 30-year fixed
Path A — Long-term qualified (Form 1007)
| Line | Value |
|---|---|
| Market rent (1007) | $3,100/mo |
| Rate (strong LTR DSCR file) | 7.00% |
| P&I on $390,000 | ~$2,595/mo |
| PITIA | ~$3,245/mo |
| DSCR | $3,100 / $3,245 = 0.96 |
| Outcome | Below 1.0 — needs more down, sub-1.0 program, or STR income path |
At 7.00% with no STR add-on, this deal still fails standard DSCR at 75% LTV because the long-term rent is conservative.
Path B — STR actuals qualified
| Line | Value |
|---|---|
| T-12 gross STR revenue | $98,000 |
| Lender expense factor (30%) | −$29,400 |
| Qualifying income | $68,600/yr = $5,717/mo |
| Base rate | 7.00% |
| STR add-on | +0.50% |
| Note rate | 7.50% |
| P&I on $390,000 | ~$2,728/mo |
| PITIA | ~$3,378/mo |
| DSCR | $5,717 / $3,378 = 1.69 |
| Outcome | Clears 1.25 tier — but pays 0.50% premium and may cap at 70% LTV on some programs |
Drop LTV to 70% ($364,000 loan) at 7.50% and PITIA falls to roughly $3,175/mo. DSCR holds 1.80 — often enough to improve pricing tier and satisfy STR LTV caps.
Monthly cost of the STR add-on alone: 0.50% on $390,000 ≈ $130/month in extra interest versus the 7.00% long-term path — before counting the higher qualifying income that made the deal possible.
Run both paths on your address before you waive inspection: submit scenario.
Rate tiers — what “5.75%–10.5%” actually means
Jaken Finance Group’s published 5.75%–10.5% band spans the full DSCR stack, not only STR files. In practice:
| Profile | Typical landing zone |
|---|---|
| SFR, 1007, 1.25+ DSCR, 720 FICO, ≤70% LTV | Lower third of band |
| STR higher-of, 1.20 DSCR, 680 FICO, 70% LTV | Middle of band |
| Condo STR, AirDNA-only, 1.05 DSCR, 75% LTV | Upper middle |
| No-ratio STR, minimal seasoning, max leverage | Top of band |
ARM products and buydown points can shift the effective rate. Prepayment penalties of three to five years often buy 0.25%–0.50% off the note rate — common on investor holds where you refi after seasoning STR actuals.
Cash-out and refinance — STR rate reality
STR cash-out pricing is tighter than purchase:
| Transaction | Typical max LTV | Rate note |
|---|---|---|
| Purchase (STR income) | 70%–75% | +0.25%–0.75% vs LTR |
| Rate-and-term refi | 70%–75% | Seasoning 3–6 months common |
| Cash-out refi | 65%–70% | Higher rate tier + lower LTV |
Investors recycling equity from a performing Airbnb should bring 12 months of platform statements to refi into better STR tiers. No-ratio DSCR and DSCR cash-out refinance cover files that do not hit 1.0 on the 1007 today.
Common STR rate-shopping mistakes
| Mistake | What goes wrong | Fix |
|---|---|---|
| Quoting LTR rate on an AirDNA pro forma | Surprise add-on at lock | Ask for STR grid upfront |
| Max LTV on condo STR | 5-point LTV cut + condo premium | Model 70% LTV day one |
| Ignoring winter months | DSCR OK in summer, fails on T-12 | Use trailing 12, not peak quarter |
| Skipping permit check | Lender reverts to 1007 mid-file | Confirm license before appraisal order |
| Assuming cash-out = purchase rate | Higher LTV tier and PPP | Separate refi quote |
Underwriting detail on income methods — not rate grids — lives in how lenders underwrite Airbnb income. Insurance and permit declines: STR insurance, permits, and financing.
Jaken Finance Group STR DSCR terms
| Parameter | Range |
|---|---|
| Rates | 5.75%–10.5% (30-yr fixed / ARM) |
| STR income add-on | +0.25%–0.75% vs 1007-only (typical industry) |
| LTV (STR purchase) | 70%–75% typical |
| LTV (STR cash-out) | 65%–70% typical |
| Min DSCR | 1.0 standard; 1.25+ best tier |
| Reserves | 3–6 months PITIA; STR often 6 |
| Close | ~14 business days |
| Coverage | All 50 states |
Apply
Get approved · Submit scenario · Submit refi · (833) 264-7776
Bottom line
Short-term rental DSCR loan rates in 2026 run 0.25%–0.75% above long-term DSCR when Airbnb income drives qualification — on top of the usual adjustments for FICO, LTV, and DSCR. Jaken Finance Group prices STR files at 5.75%–10.5%; the winning move is to quote both the 1007 path and the STR-actuals path before you bind, then choose the structure that clears DSCR without overpaying on rate or leverage.
Short-Term Rental DSCR Loan Rates 2026 — next step
Send the address, your target LTV, and either T-12 STR statements or an AirDNA report. We will price both the long-term and STR income grids so you lock the path that fits.
Submit scenario · Pre-qualify · (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196