Financing for Your Airbnb

Generate Massive Wealth Through Airbnb or Short-Term Rental Property Investing

Begin Your Investing Journey With an Airbnb Loan

We Are the Top Airbnb Lender in the Country

What is an Airbnb Loan?

An Airbnb loan refers to any type of financing that can be used by a real estate investor to buy a property for the purpose of using it as an Airbnb or short-term vacation rental. For these loans, a minimum 15% down payment is typically required to purchase an investment property. As a leading lender, we specialize in Airbnb mortgage loans and our staff is knowledgeable about the benefits as our CEO, Brian Decker owns a large number of vacation rentals personally.

When looking to finance your Airbnb rental, you can get the cash needed for your down payment by using a home equity line of credit or cash-out refinance from your primary home. If your current mortgage loan is at a very low-interest rate, using a home equity line of credit (a second mortgage) is usually the preferred option to preserve your rate. We can assist in arranging the financing needed for a home equity line of credit (HELOC). The process is not long and the line of credit can usually be obtained for an amount up to 80% of the value of your current home. For example, if your primary home is worth $600,000 and you only owe $350,000, you can potentially qualify for a $130,000 equity line to assist in meeting your down payment needs. If a HELOC is not an option, you can also use your 401k, savings, stocks, crypto or RSUs to fund your down payment.

Air Bnb Loan Requirements

Obtaining financing for an investment property usually requires the following:

680 minimum credit score
Debt to income ratio below 50%
A 15% down payment for the 1st investment property and a 20% down payment for an additional home
No more than 10 mortgaged properties are allowed per borrower
The lender must complete an appraisal on the property to identify how much the home would rent for as a long-term rental. This rental income can then be used to help a borrower qualify for a new mortgage.
6 to 12 months of reserves in the bank AFTER the down payment. 1 month of reserves is equal to the total housing payment for the property (principal, interest, insurance and property taxes)

Air Bnb Loan Qualifier!

Unique Benefits We Offer Our Airbnb Clients:

For any borrower that is pre-approved by Modern Lending for an investment property purchase, we will provide a detailed AirBNB market analysis for the particular city where the property resides. This will include the following:

The estimated profit the property will generate
Marketing Rating A-F
Estimated Occupancy based on historical averages for that city
A Monthly Rent Calendar: The amounts an investor can expect to lease out the property for every night of the year, based on the seasonality of the area
A list of top Airbnb properties listed in that market to mimic
A comprehensive list of Airbnb services to signup for to help manage the property. This includes everything from AirbnbSEO to Guesty
A personal phone call with CEO Brian Decker to go over any questions about operating an Airbnb (15 minutes)

Learn how to secure your first Airbnb loan by downloading CEO Brian Decker’s PDF tutorial today!

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