Vacation Rental Loans2022-08-21T21:15:46-04:00

Short-term / Vacation Rental Loans

Financing for AirBnBs and other Short-term rentals

With the rapid growth of AirBnB, VRBO, and other short-term rental (STR) platforms, vacation rentals can be extremely lucrative. Green Block’s Vacation Rental Loans help investors purchase, refinance, or cash-out on their short-term rentals. These non-QM 30-year rental loans are based on the income produced by your STR* rather than your personal Debt-to-Income, and provide the funds you need to capitalize on this new rental opportunity.

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Vacation Rental Loans

High LTVs

Fast Funding

Non-QM Loans

Short-term/Vacation Rental Loan Details

 Loan Types Purchase, Refinance, or Cash-out.
Property Types Non-owner occupied 1-4 units, condos, townhomes. Single room STR not permitted.
Loan to Value (LTV)** Purchase: Lesser of up to 75% of the as-is value or up to 75% Loan-to-Cost (LTC)

Refinance: Up to 75% of the As-Is Value

Cash-out: Up to 70% of the as-is value

Term 30 years
Amortization Fully amortized, fixed rate.
Hybrid ARMS (5/1, 7/1, 10/1) and Interest-Only Options available.
Prepayment Penalty 0 – 5 year step-down options available
Rates Starting at 6.5%
Cashflow Determination* Actual income (if property has 12-month STR income history); Long-term market rent based on appraisal (if property does not have 12-month STR income history)
DSCR Minimum 1.10
Property Condition No rehab needed
Minimum Experience None
Minimum FICO 660
Loan Amount $50,000 to $2 million
Minimum Property Value $100,000
Borrower Type US-based business entities. Foreign National guarantors permitted.

* Actual STR income will be used in DSCR calculation if the property has at least 12 months of STR rental income history.
** Max LTV based on factors such FICO, experience, property type.

Download our full program overview

Rental Portfolio Loan Application Process

Our loan process is simple – designed to help you close quickly and seamlessly. We know that time is money and our team’s goal is to help you move fast.

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Upload required documents to our secure online loan portal

Underwriting reviews the file

Loan is APPROVED!

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Frequently Asked Questions

What are your Vacation Rental Loan fees?2022-08-13T12:17:33-04:00

We believe in transparency, not hidden fees. Please refer to our Vacation Rental Program overview for a list of fees.

How are your STR loans different from your long-term rental loans?2022-07-03T16:44:34-04:00

The primary difference is the way in which the DSCR is calculated. For STRs with at least 12 months of rental income history, the DSCR is calculated using actual rental income. For vacation rentals without at least 12 months of STR rental income history or properties used as long-term rentals, the long-term market rent is used in the calculation. Maximum LTV/LTCs are slightly lower for STRs due to the potential volatility of income for vacation rentals.

Do you use the actual STR income to qualify the property?2022-05-22T18:20:14-04:00

If the property has at least 12 months of STR rental income history, we can use the actual income in the DSCR calculation in order to qualify it for the loan. If it has less than 12 months of STR rental income history, we will use the market rent for a typical long-term rental in the DSCR calculation.

What are vacation rental loans?2022-05-22T18:19:21-04:00

Green Block’s vacation rental loans are 30-year loans for properties used for short-term rentals (STRs) or vacation rentals. These loans can be used to purchase, refinance, or cash-out properties to be used with such services as AirbnB, VRBO, and others.

Who can borrow?2022-05-22T18:24:24-04:00

Our loans are for real estate investors looking to purchase, rehab, refinance, cash-out, or build investment properties. We lend only to legal business entities such as LLCs, LPs, or Corporations domiciled in the United States. We do not lend to individuals.

Do you lend on STRs where rooms are rented out separately?2022-07-03T16:49:09-04:00

No.

My vacation rental is located in a rural area. Can you lend on it?2022-07-03T16:50:11-04:00

Green Block is unable to lend on any property designated as rural on the appraisal. Designation is up to the discretion of the appraiser. A good rule of thumb is that if a property is listed as being in a rural or underserved area per the Consumer Finance tool located at www.consumerfinance.gov/rural-or-underserved-tool/#rural-or-underserved, Green Block will be unable to lend on it.

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