The Short-Term Rental Boom
The U.S. short-term rental market has exploded in recent years. Platforms like Airbnb and VRBO have turned everyday properties into income-generating machines. For both domestic and international investors, buying a U.S. property specifically to use as a short-term rental is an increasingly popular strategy.
But here’s the big question:
Can you get a mortgage to finance a short-term rental in the U.S.?
The answer is yes, and the key is knowing which loan options work best for this type of investment.
What Is a Short-Term Rental Property?
Short-term rental properties are homes, condos or apartments that are leased for periods typically under 30 days. They are commonly found in:
- Vacation destinations (beaches, ski towns, mountain resorts)
- College towns
- Urban centers with tourism or business travel
- Near national parks or attractions
Unlike long-term rentals, these properties can offer higher nightly rates, dynamic pricing, and seasonal spikes in income. They also require more active management and upfront planning.
Can You Get a Mortgage for a Short-Term Rental?
Yes. You can finance the purchase of an Airbnb-style property with a mortgage, including as a foreign national. However, not all mortgage types support short-term rental use. It’s important to choose a loan designed for investment purposes, especially one that allows income from the property itself to qualify you.
Best Mortgage Type: DSCR Loans
What is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. This type of loan qualifies you based on the property’s projected rental income, not your income.
- No employment verification required
- No tax returns required
- No U.S. credit score needed (for foreign nationals)
- Available to individuals or LLCs
Lenders assess how well the property can “service” the debt. A DSCR of 1.0 or higher means the property’s rental income covers the mortgage payment.
Example: If a home earns $3,000 per month in rent and your mortgage payment is $2,500, your DSCR is 1.2.
Airbnb Properties for Foreign Buyers
You do not need to be a U.S. citizen or resident to own and operate a short-term rental. Foreign national buyers are eligible for DSCR loans and other investment mortgages. Common countries investing in U.S. vacation rentals include:
- Canada
- United Kingdom
- Singapore
- United Arab Emirates
- Hong Kong
What You’ll Need as a Foreign National:
- Valid passport
- Proof of foreign income or assets
- 3 to 6 months of bank statements
- Down payment of 25 to 30 percent
- No U.S. credit history required
- The property must have rental income projections
Ideal Cities for Short-Term Rental Investment
| City | Why It Works |
| Orlando, FL | Year-round tourism and family travel |
| Scottsdale, AZ | Golf, hiking, and winter getaways |
| Nashville, TN | The music scene and high tourist traffic |
| Austin, TX | Events, festivals, and tech business travel |
| Asheville, NC | Nature, national park,s and boutique lodging |
| Lake Tahoe, CA/NV | Ski season and summer lake tourism |
Before purchasing, always check local short-term rental laws, zoning restrictions, and licensing requirements. Some cities impose limits or ban STRs in residential areas.
What Kind of Properties Qualify?
- Single-family homes
- Condos and townhomes (check HOA rules)
- Duplexes or small multifamily units
- Luxury properties for high-end rentals
- Tiny homes or unique dwellings (in STR-friendly states)
Properties must be in rentable condition and located in areas with strong rental demand.
Airbnb Mortgage Terms at a Glance
| Loan Feature | Details |
| Loan Type | DSCR, Foreign National Investment Loan |
| Occupancy Type | Non-owner-occupied (Investment property) |
| Min Down Payment | 25 to 30 percent |
| Income Verification | Based on property income, not personal |
| Rental History Needed | Not required (projections accepted) |
| Loan Term | 30 years, interest-only options available |
Can You Airbnb Your Vacation Home?
Yes, but lenders treat second homes and investment properties differently. If your primary purpose is to use the home personally and rent it occasionally, you may qualify under second home guidelines. If the intent is regular rental income, go with an investment loan.
Tip: Some DSCR loans allow you to use Airbnb income history if the property has previously been rented.
Should You Use an LLC to Own the Property?
Many investors choose to purchase through a limited liability company (LLC) for:
- Liability protection
- Simplified business management
- Better tax strategy for rental income
- Easier to scale with multiple properties
Check with your lender. Some allow you to close in the name of your LLC, while others may require an initial personal purchase and a later transfer.
Work With a Mortgage Partner That Understands Airbnb Investors
Traditional banks are usually not equipped to finance Airbnb or short-term rental strategies, especially for international buyers. That’s where America Mortgages comes in.
We specialize in:
- Foreign national loans with no U.S. credit needed
- DSCR loans for short-term rental investors
- Fast approvals with simple documentation
- Global client support and remote closings
Final Thoughts
Short-term rental investing in the U.S. can offer significant returns and lifestyle perks, especially when financed with the right mortgage. Whether you’re looking for a seasonal income stream or a full-scale Airbnb portfolio, a DSCR mortgage opens the door without the red tape of conventional loans.
Contact: [email protected]
Website: www.americamortgages.com
Speak to a U.S. Loan Expert 24 hours a day / 7 days a week: +1 845-583-0830
Need help getting started? Use their 24/7 online booking tool to schedule a free, no-obligation consultation with a licensed U.S. mortgage advisor. https://www.americamortgages.com/home-mortgage-for-foreign-national-form/
