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Funding Options
Explore financing options for your STR investment
💡 Quick Tips for STR Financing
📊DSCR loans are most popular for STR investors
💵Aim for 20%+ down to get better rates
✅Get pre-approved before shopping for properties
📋Consider closing costs (2-5% of purchase price)
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DSCR Loans
Most PopularDebt Service Coverage Ratio loans qualify based on property income, not personal income. Great for investors with multiple properties.
Down Payment
15-25%
Rates
7-9%
Pros
- •No income verification
- •Unlimited properties
- •Fast closing
Cons
- •Higher rates
- •Larger down payment
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Conventional Loans
Best RatesTraditional mortgages with the best rates, but require income verification and have property limits.
Down Payment
15-20%
Rates
6-7.5%
Pros
- •Lowest rates
- •Widely available
- •Predictable terms
Cons
- •Income verification required
- •Limited to 10 properties
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Hard Money Loans
FastestShort-term loans for quick purchases or renovations. Higher rates but fast approval.
Down Payment
20-30%
Rates
10-15%
Pros
- •Fast approval (days)
- •Credit flexible
- •Good for flips
Cons
- •Very high rates
- •Short terms (6-24 months)
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Portfolio Loans
FlexibleLoans held by local banks, offering more flexibility for unique situations.
Down Payment
20-25%
Rates
7-8.5%
Pros
- •Flexible terms
- •Relationship-based
- •Creative structures
Cons
- •Varies by bank
- •May require local presence
Need Help Finding Financing?
Our mentorship program includes connections to STR-friendly lenders who understand your investment goals.
Contact Us