Airbnb Financing: 9 Ways to Fund Your Property Investment

Starting your Airbnb business is exciting, but how you fund it can make a big difference in how successful and sustainable it turns out to be. That’s why it’s important to explore your loan options carefully and choose one that fits your property goals and financial situation.

In this article, we’ll break down what an Airbnb loan actually is, what you can use it for, the top financing options for short-term rentals, and which lenders are best suited for vacation rental hosts like you.

The top 9 Airbnb loan types are:

• Conventional Home Loan: Best for Airbnb Hosts with Solid Credit History
• Debt-Service Coverage Ratio (DSCR) Loan: Best for Airbnb Renovations and Furniture
• Cash-Out Refinance: Best for Buying a Second Home to Rent Out on Airbnb
• Home Equity Loan: Best for a Down Payment on an Airbnb
• Home Equity Line of Credit (HELOC): Best for Airbnb Hosts with Significant Equity
• Hard Money Loan: Best for Cheap Non-Traditional Airbnb Property Types
• Owner Occupied Investment Property Loan: Best for Airbnb Investors Who Don’t Own a Home
• Business Loan: Best for Airbnb Arbitrage
• Fix and Flip Loan: Best for Quick Renovations to Increase Rental Appeal

The 8 best Airbnb lenders are:

• theLender: Best Overall Airbnb Financing
• Tidal Loans: Best Airbnb Loans for LLCs
• Intrust Funding: Best Hard Money Loan
• Beeline: Best for Quick Online Application
• Modern Lending: Best for First Time Airbnb Investors
• Socotra Capital: Best for Coastal Airbnb Properties
• Kiavi: Best for Fix-and-Flip to Airbnb Conversions
• Lima One Capital: Best for Renovators

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What an Airbnb Loan Is

An Airbnb loan is basically any kind of financing you use to launch, grow, or manage a short-term rental property. There’s no one-size-fits-all option—these loans come in all shapes and sizes, depending on the lender, the type of loan, the terms, and your personal or business setup. Depending on how you structure your Airbnb business legally, you might go for a personal loan or a business loan to cover your needs.

Also known as short-term rental loans, these funds can be used for a variety of things. Hosts and real estate investors often use them to buy a vacation rental, tap into their property’s equity, renovate or furnish a unit, or even handle day-to-day expenses that come with running a rental.

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Why Real Estate Investors Look for Airbnb Loans

If you’re thinking about getting into the Airbnb game—or want to grow your short-term rental business—you’ve probably looked into Airbnb loans. Real estate investors use them for all sorts of reasons. Here’s a quick breakdown of the most common ones:

1. Buying a Property

Most people start here. If you want to buy a property specifically to list on Airbnb, you’re going to need a good chunk of change. As of early 2025, the median home price in the U.S. is still hovering around $350,000. That’s not pocket change.

To finance that, investors often look at conventional mortgages, DSCR (Debt Service Coverage Ratio) loans, cash-out refinancing, or even home equity loans. DSCR loans are especially popular right now because they don’t look at your personal income—they just care whether the property itself can generate enough income to cover the loan.

2. Tapping Into Equity

Already own a rental or vacation home? You might be able to borrow against the equity you’ve built. This works a lot like a HELOC (Home Equity Line of Credit) or a cash-out refi. These are solid options if you’re planning to buy another property or reinvest in the one you have.

3. Renovating

Whether you just bought a fixer-upper or want to freshen up an existing listing, renovations can get expensive fast. Basic updates can start around $15,000, and full-scale remodels can easily push past $100,000.

To help with that, many investors turn to home equity loans or DSCR loans. Just make sure the improvements you make actually help boost your nightly rate or occupancy—otherwise, it may not be worth the investment.

4. Furnishing the Space

Furnishing a rental isn’t just about tossing in a couch and a bed—you want your space to stand out. On a medium budget, expect to spend $20,000–$50,000. If you're going for a luxury vibe, it could hit six figures.

To cover those costs, investors often go with DSCR loans, personal loans, or home equity options. Some even use business credit if they’re operating multiple properties.

5. Starting Airbnb Arbitrage

This is for folks who don’t want to buy property but still want in on the action. With Airbnb arbitrage, you lease a long-term rental and sublet it short-term on platforms like Airbnb or Vrbo. You make money by charging more per night than what you pay in rent.

Startup costs here are mostly for furniture, permits, and maybe a short-term rental license depending on the city. Business loans or personal loans usually make the most sense for this kind of setup.

6. Covering Day-to-Day Costs

Not super common, but some investors take out loans to help cover operating expenses—like utilities, cleaning, or maintenance—especially during slow seasons. That said, if you’re relying on loans to keep the place running, it might be time to reevaluate your strategy. Still, a HELOC or a line of credit could help you bridge the gap temporarily.

In short, there are a bunch of different ways to finance your Airbnb plans, depending on what stage you're at. The key is to pick the loan that fits your needs—and make sure the numbers work in your favor.

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9 Types of Airbnb Loans

1. Conventional Home Loan for Airbnb

A conventional mortgage is one of the most common ways to finance an Airbnb property. These are standard home loans typically offered by banks and aren’t tied to government programs like FHA, VA, or USDA loans. However, they’re often backed by big-name institutions like Fannie Mae or Freddie Mac. If you’re buying a short-term rental, the process is similar to buying a regular home—but with stricter rules since it's considered an investment property.

Types of Conventional Loans:

• Fixed-Rate Mortgages (FRM): The interest rate stays the same the entire loan term, making monthly payments predictable.
• Adjustable-Rate Mortgages (ARM): Starts off with a lower fixed rate, but after a set period, the rate can adjust based on market conditions.

Who This Is Best For:

If you’ve got strong credit and aren’t already juggling a mortgage on a primary home, a conventional loan can be a solid option. Just know that if you’re applying for a second mortgage, lenders will look at you a bit more closely.

Costs to Expect:

• Down Payment: Most lenders ask for at least 20% down on investment properties. If you can put down more, you might land better terms.
• Closing Costs: Expect to pay about 2% to 6% of the loan amount at closing.
• Interest Rates: As of early 2025, mortgage rates are sitting around 6.5% to 7% for 30-year fixed loans. Rates for investment properties can be a bit higher than what you’d get on a primary residence.

Basic Requirements:

• Credit Score: A minimum of 620 is usually required.
• Cash Reserves: Many lenders want to see that you’ve got enough savings to cover six months’ worth of mortgage payments—just in case your Airbnb doesn’t bring in income right away.

Loan Terms:

Most conventional loans run for 15 or 30 years, though you might be able to negotiate something different. You can choose between a fixed interest rate (which stays the same) or an adjustable one (which can change after a few years).

How You Can Use the Loan:

Aside from buying the property, you might also be able to borrow extra for things like closing costs, light renovations, or furnishing your Airbnb to get it guest-ready.

Pros and Cons:

Pros:

• You’ve got flexibility to negotiate things like loan amount, duration, and interest type.
• Fixed-rate options give you predictable monthly payments, which is great for budgeting.
• Many conventional loans are backed by Freddie Mac or Fannie Mae, adding a layer of stability.

Cons:

• You’ll need a good-sized down payment and a solid credit history to qualify.
• It’s a long-term commitment—usually 15 to 30 years—so be ready to play the long game.

If you're financially prepared and ready to invest in a short-term rental, a conventional mortgage can be a reliable and familiar route. Just make sure the numbers work for your goals and that you’re in it for the long haul.

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2. Debt-Service Coverage Ratio (DSCR) Loan for Airbnb

DSCR loans are a smart option for Airbnb investors because they focus more on how much income the property generates rather than your personal income. That makes them a good fit if you're buying, renovating, or even furnishing a rental and don’t necessarily have a traditional income source to show.

What is a DSCR Loan?

A DSCR (Debt-Service Coverage Ratio) loan looks at how much income your property brings in compared to the debt you want to take on. Lenders divide your property's net operating income (NOI) by your annual loan payments. A DSCR of 1.0 means the income just covers the debt, while anything above that shows positive cash flow.

Best for:

These loans are great for investors looking to buy, fix up, or furnish a short-term rental—especially if you’d rather qualify based on your Airbnb’s projected income instead of your own paychecks.

Cost:

• Down Payment: Most lenders ask for 20% to 25% down.
• Interest Rates: Rates tend to be a bit higher than conventional loans—usually about 1% to 2% more.
• Closing Costs: Similar to conventional mortgages, you’re looking at 2% to 6% of the loan amount.

Requirements:

• DSCR Minimum: You’ll typically need a DSCR of at least 1.25. That means for every $1 you owe annually, the property should bring in at least $1.25 in net income.
• Credit Score: A minimum score of 620 to 640 is common, though the higher the better.
• Cash Reserves: Lenders often want to see several months of mortgage payments in reserves to be safe.

Terms:

Loan terms vary by lender, but most fall between 15 and 30 years. You can choose a fixed rate for consistency or go with an adjustable-rate loan if you expect market rates to drop later on.

Use Cases:

• Buying a new Airbnb property
• Renovating or upgrading an existing rental
• Furnishing a property to make it guest-ready

Pros and Cons:

Pros:

• You can qualify based on the property’s income instead of your personal earnings.
• Terms are flexible—different loan lengths and rate types are available.
• Great for scaling up your rental business without hitting personal income limits.

Cons:

• Interest rates are a bit higher than conventional loans.
• Your rental needs to meet minimum income requirements, which can be tricky in seasonal markets.
• You’ll need a solid down payment and good credit to qualify.

DSCR loans aren’t as widely known as conventional options, but they’re a solid choice for Airbnb hosts—especially if you're light on W-2 income but have a property that can cash flow. If your numbers are right, they can help you get up and running or expand your short-term rental game.

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3. Cash-Out Refinance for Airbnb

Cash-out refinancing is a way for property owners to tap into the equity they've built up in their home (or another property) and use that money toward investing in a short-term rental. It works by replacing your current mortgage with a new, larger one. The difference between the two amounts is paid out in cash—which you can then use however you’d like, including buying or upgrading an Airbnb.

Best for: 

This option works well if you already own a home with plenty of equity and want to use that to buy a second property to rent out on Airbnb.

Cost:

• Interest Rates: These loans usually come with slightly higher interest rates than standard mortgages—about 0.125% to 0.25% more—since they’re considered a bit riskier.
• Closing Costs: Expect to pay anywhere between 2% and 6% of the new loan amount, similar to conventional loans.

Requirements:

• Most lenders allow you to cash out up to 80% of your home’s value, depending on how much equity you have.
• You’ll typically need a credit score of at least 620 to qualify.

Terms: 

Repayment periods usually range from 15 to 30 years. Just like other types of mortgages, you can choose between a fixed-rate loan (steady payments) or an adjustable-rate loan (which may start lower but can change over time).

Use Cases:

• Buying a new property to use as a short-term rental
• Renovating or furnishing an existing Airbnb property
• Pulling equity from your current Airbnb rental to reinvest in it or in another property

Pros and Cons:

Pros:

• You’re using money you already have in your property—no need to qualify based on income alone
• Long loan terms mean your monthly payments are generally more manageable
• Great for expanding your Airbnb business without taking out a separate loan

Cons:

• Interest rates are a bit higher than those on a standard refinance
• You're putting your current home on the line—if things don’t go as planned, your main residence could be at risk

In short, a cash-out refinance can be a great way to get funding for an Airbnb if you’ve built up significant equity in your home. Whether you're buying a second property or sprucing up an existing one, this method gives you access to cash without having to take on a brand-new loan from scratch. Just be sure the numbers work—and that you’re comfortable with the risks.

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4. Home Equity Loan for Airbnb

A home equity loan allows you to borrow a lump sum by leveraging the equity in your primary residence or another property. Often termed a second mortgage, this long-term loan provides funds upfront, which can be utilized for various purposes, including purchasing or upgrading an Airbnb property. It's essential to understand that this loan is secured against your home, meaning your property serves as collateral. Consequently, if you default on payments, your primary mortgage takes precedence over the home equity loan during repayment.

Best for: 

Utilizing a lump sum to cover significant expenses, such as the down payment on an Airbnb property or substantial renovations to enhance its appeal.

Cost:

• Interest Rates: As of April 2025, the average interest rate for home equity loans is approximately 8.37%. This rate is generally higher than that of primary mortgages due to the increased risk lenders assume with second mortgages.
• Closing Costs: Typically range between 2% and 5% of the loan amount, similar to those associated with primary mortgages.​

Requirements:

• Equity: Lenders usually allow you to borrow up to 85% of your home's appraised value, minus any outstanding mortgage balance. This means you need to have substantial equity built up in your property. ​
• Credit Score: A minimum credit score of 620 is commonly required, though some lenders may have higher thresholds. ​
• Debt-to-Income Ratio (DTI): Most lenders prefer a DTI ratio below 43%, ensuring you have sufficient income to manage additional debt payments. 

Terms:

• Repayment Period: Home equity loans offer flexible repayment terms, typically ranging from 5 to 30 years. ​
• Interest Structure: These loans come with fixed interest rates, providing predictable monthly payments throughout the loan term. ​

Use Cases:

• Down Payment: Applying the loan towards the down payment of a new Airbnb property.​
• Renovations: Funding significant upgrades or remodeling projects to enhance the property's rental appeal.​
• Furnishing: Purchasing furniture and amenities to create an inviting space for guests.​

Pros and Cons:

Pros:

• Access to Funds: Provides a substantial lump sum based on your home's equity, enabling significant investments in your Airbnb venture.​
• Fixed Payments: Predictable monthly payments due to fixed interest rates facilitate easier budgeting.​
• Potential Tax Benefits: Interest payments may be tax-deductible if the loan is used for home improvements; consult a tax advisor for specifics.

Cons:

• Higher Interest Rates: Typically higher than primary mortgage rates, increasing the overall cost of borrowing.​
• Risk to Property: Your home serves as collateral, so failure to repay could result in foreclosure.​
• Limited Borrowing Capacity: The amount you can borrow is constrained by the equity in your home and lender-imposed limits.​

In summary, a home equity loan can be a viable financing option for investing in an Airbnb property, especially if you have significant equity in your home. However, it's crucial to carefully assess the associated risks and ensure you can manage the additional financial obligations. Consulting with a financial advisor can provide personalized insights tailored to your situation.

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5. Home Equity Line of Credit (HELOC) for Airbnb

A Home Equity Line of Credit, or HELOC, is a flexible financing option that allows you to borrow against the equity you've built up in your home. Think of it like a credit card: you have a set credit limit and can draw funds as needed during the draw period. This draw period typically lasts around 10 years, during which you're often required to make only interest payments on the amount you've borrowed. After this, the repayment period kicks in—usually spanning 10 to 20 years—where you'll pay back both the principal and interest.​

Best for: 

Homeowners with significant equity who are looking to purchase, renovate, or furnish an Airbnb property.​

Cost:

• Interest Rates: HELOCs generally come with variable interest rates, which can be higher than those of conventional mortgages. The exact rate depends on factors like your credit score, the amount borrowed, and prevailing market conditions. Remember, you're only charged interest on the amount you actually draw, not the total credit limit.​
• Fees: Be mindful of potential fees such as annual maintenance fees, transaction fees, or membership fees associated with the HELOC.​

Requirements:

• Home Equity: Lenders typically require you to have at least 15% to 20% equity in your home. They may allow you to borrow up to 85% of your home's value, minus any outstanding mortgage balance. For example, if your home is valued at $300,000 and you owe $150,000, you might be eligible to borrow up to $105,000.​
• Credit Score: A minimum credit score of 680 is often needed, though some lenders might accept scores as low as 620.​
• Debt-to-Income Ratio (DTI): Lenders usually look for a DTI of 43% or lower, but some may allow up to 50%.​

Terms:

• Draw Period: Typically 5 to 10 years, during which you can borrow as needed and may have the option to make interest-only payments.​
• Repayment Period: Following the draw period, you'll enter a repayment phase of 10 to 20 years, where you'll pay back both principal and interest.​
• Interest Rates: HELOCs often have variable rates, meaning they can fluctuate over time based on market conditions. This can lead to changes in your monthly payment amounts.​

Use Cases:

• Purchasing a Property: Use the funds to buy a new property intended for short-term rentals on platforms like Airbnb.​
• Renovations and Furnishings: Finance upgrades, renovations, or furnishings to enhance the appeal and functionality of your Airbnb listing.​
• Operating Expenses: Cover ongoing costs associated with managing and maintaining your rental property.​

Pros and Cons:

Pros:

• Flexibility: Access funds as needed during the draw period, paying interest only on the amount borrowed.​
• Potential Tax Benefits: Interest payments might be tax-deductible if the funds are used for home improvements (consult with a tax advisor).​
• Leverage Existing Equity: Utilize the equity in your home to invest in additional property or enhance current investments.​

Cons:

• Variable Interest Rates: Payments can increase if interest rates rise, leading to potential financial strain.​
• Risk to Primary Residence: Your home serves as collateral; failure to repay could result in foreclosure.​
• Fees and Costs: Be aware of associated fees that can add to the overall cost of borrowing.​

In summary, a HELOC can be a valuable tool for financing an Airbnb property, especially if you have substantial equity in your home. However, it's essential to understand the terms, costs, and risks involved. Ensure you have a solid plan for repayment and consider consulting with financial professionals to determine if this financing option aligns with your investment goals.​

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6. Hard Money Loan for Airbnb

Hard money loans are short-term financing options that real estate investors often turn to when traditional loans aren't accessible. These loans are typically provided by private lenders or specialized lending institutions and are secured by the property itself. While they come with higher costs, they offer flexibility and speed that can be advantageous in certain investment scenarios.​

Best for: Investors interested in non-traditional Airbnb property types or those who may not meet the stringent requirements of conventional financing.​

Cost:

• Down Payment: Many hard money lenders require a down payment of at least 30% of the property's purchase price. However, this can vary, with some lenders offering different terms based on the deal's specifics and the borrower's experience.​
• Interest Rates: As of early 2025, interest rates for hard money loans typically range from 9.5% to 12% for first-position loans.  Second-position loans may have higher rates, often between 12% and 14%.
• Closing Costs: These are usually between 2% and 5% of the loan amount, similar to other short-term financing options.​

Requirements:

• Asset-Based Qualification: Hard money loans are primarily asset-based, meaning the property's value is the main factor in the lending decision. This focus allows for more flexible qualification criteria, making them accessible to investors who might not meet traditional lending standards.

Terms:

• Loan Duration: Typically, hard money loans have short repayment periods, often ranging from one to three years. This short term necessitates a clear exit strategy, such as refinancing or selling the property. 
• Interest Rates: Given the higher risk to lenders, interest rates are notably higher than those of conventional mortgages. Investors should be prepared for these elevated rates and plan their investment strategies accordingly.​

Use Cases:

• Property Acquisition: Investors may use hard money loans to quickly purchase properties, especially in competitive markets where speed is essential.​
• Renovation and Furnishing: Funds can also be allocated for renovating and furnishing properties to make them suitable for short-term rentals like Airbnb.​

Pros and Cons:

Pros:

• Flexible Qualification: These loans are accessible to investors who may not qualify for traditional financing due to credit issues or unconventional property types.​
• Quick Approval and Funding: Hard money lenders can often approve and fund loans much faster than traditional banks, sometimes within days.​
• Short-Term Commitment: The shorter loan terms mean investors aren't tied to long-term debt obligations.​

Cons:

• Higher Costs: The combination of higher interest rates and substantial down payments makes these loans more expensive.​
• Risk of Property Loss: Since the property serves as collateral, failure to repay the loan can result in losing the investment property.​
• Short Repayment Period: The brief loan term requires investors to have a solid plan for repayment, whether through property sale, refinancing, or generating sufficient rental income.​

In summary, hard money loans can be a viable financing option for Airbnb investors, particularly those dealing with unique property types or who need quick funding. However, the higher costs and shorter terms necessitate careful planning and a clear exit strategy to ensure the investment's success.​

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7. Owner Occupied Investment Property Loan for Airbnb

An Owner-Occupied Investment Property Loan offers a strategic pathway for individuals aiming to enter the Airbnb market through a method known as "house hacking." This approach involves purchasing a small multifamily property, residing in one unit, and renting out the others to generate income.​

Best for: 

Aspiring Airbnb investors who are first-time homebuyers or those without an existing primary residence.​

Cost:

• Down Payment: Depending on the loan type:​
  
  • FHA Loans: Require as little as 3.5% down.
  • Conventional Loans: May allow down payments as low as 5% for owner-occupied multifamily properties.​
  • VA Loans: Offer zero down payment options for eligible veterans and service members.​
• Interest Rates: Generally lower than those for non-owner-occupied investment properties, reflecting the reduced risk associated with owner occupancy.​
• Closing Costs: Typically range between 2% and 5% of the loan amount.​
• Private Mortgage Insurance (PMI): If the down payment is less than 20%, PMI is usually required, adding an annual cost of approximately 0.5% to 2% of the loan balance, until 20% equity is achieved.​

Requirements:

• Occupancy: The borrower must occupy one of the units as their primary residence, typically within 60 days of closing, and usually for a minimum of one year.​
• Credit Score: A minimum credit score of 620 is often required, though higher scores can improve loan terms.​
• Debt-to-Income Ratio (DTI): Lenders generally look for a DTI below 43%, though some may allow up to 50%.​

Terms:

• Loan Duration: Repayment periods commonly extend up to 30 years.​
• Interest Structure: Options include fixed or adjustable rates, depending on the lender and loan product.​

Use Cases: 

This financing method is ideal for purchasing a multifamily property where the owner can live in one unit and rent out the others, effectively combining personal housing with investment income.​

Pros and Cons:

Pros:

• Lower Barrier to Entry: Reduced down payment requirements make it more accessible for new investors.​
• Favorable Loan Terms: Owner-occupants often receive better interest rates and terms compared to traditional investment property loans.​
• Income Generation: Rental income from additional units can offset mortgage payments and other expenses.​

Cons:

• Occupancy Obligation: The requirement to live in the property may not align with all investors' strategies or preferences.​
• Limited Property Types: Typically restricted to properties with up to four units; larger properties do not qualify.​
• Management Responsibilities: Living on-site means direct involvement in property management and tenant relations.​

In summary, an Owner-Occupied Investment Property Loan serves as a practical solution for those looking to delve into Airbnb hosting while simultaneously securing a primary residence. By leveraging this approach, investors can benefit from favorable loan terms and generate rental income, facilitating a balanced entry into real estate investment.​

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8. Business Loan for Airbnb

Securing financing for your Airbnb venture can be approached through various business loan options tailored to support property acquisition, renovation, or furnishing. One notable option is the Small Business Administration (SBA) 504 loan, designed to assist small businesses in purchasing fixed assets like real estate.​

Best for: 

Investors aiming to purchase or upgrade properties for Airbnb operations, particularly those planning to occupy a portion of the property.​

Cost:

• Down Payment: Typically ranges from 10% to 30% of the property's purchase price, depending on the lender and specific loan program.​
• Interest Rates: SBA 504 loans offer fixed interest rates, generally around 3% above the current U.S. Treasury rates.​

Requirements:

• Credit Score: A minimum personal credit score is required; specific thresholds vary by lender.​
• Business Financials: Demonstrated financial stability, including a solid business plan and sufficient annual revenue.​
• Occupancy: For SBA 504 loans, the business must occupy at least 51% of an existing building or 60% of a newly constructed property.​

Terms:

• Loan Amount: Up to $5.5 million, depending on the project and borrower qualifications.​
• Repayment Period: Typically up to 25 years for real estate purchases.​

Use Cases:

• Property Acquisition: Purchasing a new property to operate as an Airbnb rental.​
• Renovation and Furnishing: Upgrading or furnishing an existing property to enhance its appeal to short-term renters.​
• Airbnb Arbitrage: Financing the leasing and setup of properties for subletting on Airbnb.​

Pros and Cons:

Pros:

• Access to Capital: Provides funds for property acquisition and improvements.​
• Potential Favorable Terms: SBA loans often come with lower down payments and competitive interest rates.​

Cons:

• Strict Eligibility Criteria: Requires thorough documentation, a solid business plan, and meeting specific occupancy requirements.​
• Longer Approval Process: SBA loans can take longer to process compared to conventional loans.​
• Occupancy Restrictions: A significant portion of the property must be owner-occupied, which may not align with all Airbnb business models.​

In summary, business loans, including SBA 504 loans, can be viable financing options for Airbnb hosts looking to purchase or enhance properties. However, it's essential to understand the specific requirements and ensure they align with your business strategy.​

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9. Fix and Flip Loans for Airbnb

Fix and flip loans are short-term financing options designed for real estate investors aiming to purchase, renovate, and quickly sell or rent out properties, including those intended for Airbnb. These loans cover both the acquisition and renovation costs, facilitating swift property enhancements to maximize rental appeal or resale value.

Best for: 

Investors looking to rapidly renovate properties to enhance their rental attractiveness or increase resale value, particularly in the short-term rental market.

Cost:

• Interest Rates: Typically higher than conventional loans due to the short-term nature and associated risks. As of early 2025, interest rates for fix and flip loans range from approximately 8% to 14%, depending on factors such as the investor's experience, property location, and overall creditworthiness.
• Closing Costs: Generally range from 2% to 5% of the loan amount, varying by lender and specific loan terms.

Requirements:

• Renovation Plan: Lenders typically require a comprehensive plan detailing the scope of renovations, projected timeline, and budget.
• After-Repair Value (ARV): Loan amounts are often based on the property's ARV, with lenders commonly financing up to 70% of this estimated value.
• Credit Score: A minimum credit score of 620 is generally required, though higher scores may secure more favorable terms.
• Experience: While not always mandatory, prior experience in property renovations or real estate investment can enhance loan approval prospects and terms.

Terms:

• Duration: These are short-term loans, typically ranging from 6 to 24 months, aligning with the expected timeline for property renovation and resale or rental.
• Repayment Structure: Often interest-only payments during the loan term, with the principal due upon sale or refinancing of the property.

Use Cases:

• Property Acquisition and Renovation: Ideal for purchasing properties that require significant updates before they can be effectively rented out on platforms like Airbnb.
• Quick Turnaround Projects: Suited for projects with a clear plan for rapid renovation and subsequent sale or rental.

Pros and Cons:

Pros:

• Quick Access to Capital: Enables investors to swiftly acquire and renovate properties, capitalizing on market opportunities.
• Potential for High Returns: Well-executed projects can lead to substantial profits through increased property value and rental income.
• Flexible Qualification Criteria: Lenders may focus more on the property's potential and the investor's plan rather than solely on personal income or credit history.

Cons:

• Higher Borrowing Costs: Elevated interest rates and closing costs compared to traditional financing options.
• Short Repayment Period: The need to repay or refinance within a relatively short time frame can add pressure to complete renovations and secure a sale or rental promptly.
• Risk of Market Fluctuations: Changes in the real estate market during the renovation period can impact the property's final value and profitability.

Fix and flip loans offer a strategic financing solution for investors aiming to enter or expand in the Airbnb market, particularly when targeting properties that require substantial improvements. By facilitating the rapid transformation of underperforming properties into desirable short-term rentals, these loans can significantly enhance investment returns. However, it's crucial for investors to carefully assess the associated costs, timelines, and market conditions to mitigate risks and maximize profitability.

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8 Best Airbnb Lenders

Securing financing for your Airbnb investment is a crucial step in building a successful short-term rental business. As of April 2025, here are some top lenders offering tailored loan options for Airbnb and short-term rental properties:​

1. theLender

theLender offers a specialized loan product known as NONI (Non-Owner-Occupied No Income), designed specifically for short-term rental properties. This program focuses on the property's cash flow rather than the borrower's personal income, eliminating the need for W-2s, tax returns, or pay stubs. Loan amounts range from $100,000 to $3,500,000, with both fixed and adjustable interest rate options. Eligible borrowers include individuals, LLCs, corporations, and trusts. 

2. Tidal Loans

Based in Texas, Tidal Loans provides financing options for short-term rental investors, including those using platforms like Airbnb and VRBO. They offer loan amounts ranging from $75,000 to $2,000,000 for properties with 1-4 units, and up to $5,000,000 for multifamily properties with 5 or more units. Interest rates can be fixed or adjustable, starting at 3.5%. Loans can be used for purchasing or refinancing properties. Eligibility is limited to LLCs, corporations, and limited partnerships (LPs).

3. Intrust Funding

Operating in Washington State, Intrust Funding specializes in hard money loans for real estate investors. They focus on short-term investment properties and require that financed properties be non-owner occupied. Loan terms typically range from 5 to 12 months, with flexibility based on the project's scope. Loan amounts can reach up to 90% of the after-repair value (ARV) and can be used for both property acquisition and renovation costs.

4. Beeline

Beeline is an online lender offering a streamlined application process for real estate investors in 28 states, including Alabama, California, Florida, Georgia, North Carolina, and Texas. They provide various loan options, including Debt-Service Coverage Ratio (DSCR) loans, which assess the property's income potential rather than the borrower's personal income. This approach is beneficial for investors who may face challenges with traditional income-based qualifications.Beeline's online platform allows for quick pre-approvals, often completed in about 15 minutes, and assigns a dedicated loan specialist to each borrower. ​

5. Modern Lending

Modern Lending offers specialized financing solutions for both first-time and seasoned Airbnb investors. They require a minimum down payment of 15% for the first Airbnb property and 20% for subsequent properties, financing up to 10 rentals per host. Other requirements include a debt-to-income ratio below 50%, a credit score above 680, and 6 to 12 months of cash reserves post down payment. ​

6. Socotra Capital

Socotra Capital provides hard money loans tailored for purchasing and renovating Airbnb vacation rental properties.They focus on properties located along the Pacific and Atlantic coasts and other prime Airbnb locations. Specific requirements and terms are not extensively detailed online, so interested investors are encouraged to contact Socotra Capital directly for more information. ​

7. Kiavi

Formerly known as LendingHome, Kiavi offers flexible fix-and-flip loans ideal for investors planning to renovate properties for Airbnb use. Their loans range from $75,000 to $2,000,000, with interest rates varying based on the project and borrower's financial profile. Kiavi is noted for quick funding times and the ability to finance up to 90% of the purchase price and 100% of renovation costs, making it a strong choice for investors looking to swiftly improve and rent out properties. ​

8. Lima One Capital

Lima One Capital specializes in various real estate investment loans, including those for short-term rentals. They offer financing options for investors looking to operate properties as Airbnb rentals, VRBO rentals, and vacation homes. Lima One provides fixed-rate, adjustable-rate, fully amortizing, interest-only, or balloon payment structures to suit different investment strategies. 

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Pros and Cons of Airbnb Financing

Using financing to buy, fix up, or furnish an Airbnb property can open a lot of doors—but it also comes with some trade-offs. If you're weighing whether to take out a loan to jump into or expand your short-term rental business, here are the key pros and cons to consider:

Airbnb Financing Pros

• Getting into the game sooner: Let’s be real—most new investors don’t have the cash lying around to buy a property outright. Saving for years might mean missing out on great opportunities. Financing gives everyday people the chance to break into real estate and start generating income through Airbnb a lot sooner.
• Room to grow your business: Even if you’ve scraped together enough to buy a property, you might not have anything left for upgrades, furniture, or marketing. That’s where short-term rental loans really shine—they give you the capital to turn a basic property into a guest-ready moneymaker.
• Building momentum (and equity): As your first Airbnb starts bringing in income, you also build up equity in the property. That combo can help you qualify for future financing, making it easier to buy a second (or third) property. It’s a snowball effect—your portfolio grows faster the more you reinvest.
• Using other people’s money to build wealth: In a way, you’re leveraging borrowed money and guest income to pay off a property you’ll eventually own. That’s the real estate game in a nutshell: using financing to grow your assets while someone else—your Airbnb guests—helps cover the costs.

Airbnb Financing Cons

• You’ll pay more over time: Taking out a loan means interest, fees, and other costs—so in the long run, you’ll pay more than if you bought in cash. That said, some Airbnb-focused loans now offer rates that are pretty reasonable, especially if you have good credit and strong rental projections.
• There’s risk involved: Most Airbnb loans require some kind of collateral—usually the property itself, or sometimes even your primary home. If bookings dry up or something unexpected happens and you can’t make the payments, you could be at risk of foreclosure. It's not something to take lightly.

Airbnb financing can be a powerful tool if you’ve got a solid plan and are ready to treat your rental like a business. It lets you move faster, scale quicker, and take advantage of opportunities that might otherwise be out of reach. Just make sure you understand the costs and risks before signing on the dotted line.

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Takeaway

How you finance your Airbnb is just as important as the property you choose. The loan you go with will shape your monthly costs, impact your cash flow, and ultimately affect how much money you make in the long run. Since every financing option has its own pros and cons, it’s worth taking the time to find the one that makes the most sense for both your property and your goals as a host. Choose wisely—it’s a big piece of the puzzle.

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