Airbnb & Short-Term Rental Financing for Canadians
Finance US short-term rental properties with DSCR loans that accept Airbnb, VRBO, Booking.com, and direct booking income for qualification. Short-term rentals in top tourism markets can generate 2-3x the revenue of traditional long-term rentals, making them some of the most profitable investments available to Canadian buyers. We use AirDNA market data to project nightly rates, occupancy percentages, and annual revenue — verifying your DSCR qualification before you make an offer. No US credit history, no W-2, and no US tax returns required. We handle the complete cross-border process including LLC formation for liability protection, STR regulation research, and lender coordination across our network of STR-friendly DSCR programs.
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Higher Revenue, Flexible Financing
Short-term rentals can generate 2-3x the income of traditional long-term rentals in the right markets. DSCR lenders recognize this — accepting platform income and projections to qualify your deal.
Airbnb & VRBO Income Qualification
DSCR lenders accept short-term rental income from all major platforms including Airbnb, VRBO, Booking.com, and direct bookings. For new acquisitions, lenders use AirDNA projections based on comparable properties in the area. For refinances of existing STR properties, they use your actual booking history and platform income statements — typically the trailing 12 months of revenue data.
AirDNA Market Analysis
We use AirDNA data to project nightly rates, occupancy rates, seasonal fluctuations, and annual revenue for your target property before you make an offer. This analysis compares your property to similar listings within a 1-3 mile radius, accounting for bedroom count, amenities, and location. The result is a defensible income projection that both you and the lender can rely on for DSCR qualification.
Higher Revenue Potential
Short-term rentals often generate 2-3x the income of long-term rentals in tourism markets like Orlando, Gatlinburg, Scottsdale, and Gulf Coast beach towns. Higher revenue means higher DSCR ratios, which can unlock better interest rates and lower down payment requirements. A property generating $60,000 per year on Airbnb versus $24,000 as a long-term rental dramatically changes your financing options and return profile.
No US Credit Required
Foreign national DSCR programs for STR properties require no US credit score, no Social Security Number, and no US employment documentation. You qualify entirely on the property's projected or actual short-term rental income. Some lenders also accept Canadian credit reports from Equifax or TransUnion Canada, which can help you access better rates if your Canadian credit score is above 680.
Close in Your LLC
Hold your STR in a US LLC for liability protection — this is especially important for short-term rentals where frequent guest turnover creates more potential exposure than long-term tenancies. Guests can file injury claims, property damage disputes, and other actions that an LLC contains within the entity. Our legal partners form your LLC in 1-2 weeks with costs starting at $500.
STR Regulation Research
We help you verify that your target property is in an STR-friendly market with favorable local regulations before you commit to the purchase. Some cities and counties restrict or ban short-term rentals, require expensive permits, or cap the number of rental days per year. Our research covers local zoning laws, HOA restrictions, permit requirements, and occupancy tax obligations so you invest with full regulatory confidence.
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STR Financing Requirements for Canadian Investors
Short-term rental DSCR loans have a few additional considerations beyond standard rental property financing. Here is what Canadian investors need to qualify for STR-specific programs.
Requirements
- Valid Canadian passport for foreign national classification and identity verification with STR-accepting DSCR lenders.
- Minimum 25-30% down payment in USD, wired from your Canadian bank account for closing.
- AirDNA revenue projection or 12 months of actual booking data (for refinances) to support the DSCR calculation.
- Property must achieve a minimum DSCR of 1.0-1.25 using annualized STR income that accounts for seasonal occupancy fluctuations.
- STR regulation compliance — the property must be in a jurisdiction that permits short-term rentals with an active or obtainable permit.
- Specialized STR insurance policy covering guest liability, property damage, and loss of rental income (standard landlord policies do not qualify).
- US LLC formation recommended for enhanced liability protection given the higher guest turnover and exposure of short-term rental operations.
How We Help
- We run AirDNA analysis on your target property before you make an offer, projecting nightly rates, occupancy, and annual revenue to verify DSCR qualification.
- Our team researches local STR regulations, permit requirements, HOA rules, and occupancy taxes to confirm the property can legally operate as a short-term rental.
- We match your deal with DSCR lenders who specifically accept STR income — not all lenders do, and using the wrong one wastes weeks of processing time.
- We coordinate LLC formation and US bank account setup in parallel so everything is ready for closing on your timeline.
- Our lender network includes programs that accept projected income from AirDNA for new acquisitions, not just actual booking history.
- We help you evaluate revenue potential across different STR markets, comparing occupancy rates, average daily rates, and seasonality patterns.
- We provide referrals to STR-specialized property managers, insurance agents, and furnishing companies in your target market.
- Post-closing, we assist with refinancing based on actual booking data — often unlocking better rates once you have 12 months of strong STR revenue.
Questions About Short-Term Rental Financing
Everything Canadian investors need to know about financing US Airbnb and vacation rental properties. Can't find your answer? Book a call with our team.
Qualification & Income
Yes. Many DSCR lenders accept short-term rental income from Airbnb, VRBO, and other platforms for DSCR qualification. For new acquisitions, lenders typically use AirDNA market data to project rental income. For refinances of existing STR properties, they use your actual booking history and platform income statements.
For short-term rentals, the DSCR is calculated using annualized rental income projections (factoring in seasonal fluctuations and vacancy). Lenders may use: AirDNA projections for comparable properties, your actual booking data if you already own the property, or a blend of both. Most require a DSCR of 1.0-1.25 after accounting for seasonality.
Markets & Management
Top STR markets combine strong tourism demand with investor-friendly regulations. Popular choices include: Florida (Orlando, Gulf Coast beaches), Tennessee (Nashville, Gatlinburg/Pigeon Forge), Arizona (Scottsdale, Sedona), Texas (Austin, San Antonio), and mountain resort areas (Colorado, Vermont). We help you evaluate markets using AirDNA data for revenue projections.
No. Most Canadian investors use local property management companies that specialize in short-term rentals. These companies handle guest communication, cleaning, maintenance, pricing optimization, and listing management. Typical STR management fees are 15-25% of gross revenue. We can recommend managers in your target market.
Setup & Operations
Short-term rental properties must be fully furnished and guest-ready before listing. For a 2-3 bedroom property, expect to spend $10,000-$25,000 on furniture, linens, kitchenware, decor, smart locks, and a wifi setup. Many investors also add amenities like hot tubs, game rooms, or outdoor spaces to command higher nightly rates. These costs are not included in the DSCR loan but can often be financed through personal funds or a separate furnishing loan.
Lenders annualize the income projection to smooth out seasonal peaks and valleys. AirDNA data provides 12-month revenue projections that factor in high season rates, shoulder season rates, low season occupancy, and local event calendars. The lender uses the annualized figure (not just peak season revenue) divided by 12 to calculate the monthly income for DSCR purposes. This conservative approach ensures you can cover the mortgage even during slower months.
Standard landlord insurance does not cover short-term rental activity. You need a specialized STR insurance policy that covers guest injuries, property damage from guests, loss of rental income, and liability claims. Annual premiums typically range from $2,000-$5,000 depending on the property value, location, and number of guests. Airbnb and VRBO offer supplemental host protection, but these should not replace a dedicated STR insurance policy. Your lender will require proof of adequate coverage at closing.
Yes. If you already own a US rental property on a DSCR loan, you can convert it to a short-term rental — provided local regulations allow it. You will need to furnish the property, set up platform listings, and potentially notify your lender and insurance provider of the change in use. If the STR generates higher income, you may benefit from refinancing based on the new revenue to access better rates or pull cash out for your next investment.
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