DSCR is calculated by dividing the property’s actual or projected gross annual income by its annual mortgage debt service (including principal and interest, property taxes, insurance and HOA fees).

Projected income can come from sources like AirDNA.co and Rabbu.com. For some programs the projected income is discounted by 20% for new investors and 100% can be used for experienced investors with 1 short term rental property owned within 100 miles of the subject property or a total of 3 short term rental properties owned nationwide.

If using existing income from a previous owner or a borrower owned property that is being refinanced, we can use 100% of the trailing twelve months of gross revenue or 100% gross revenue minus actual property management expenses in some cases.

A DSCR ratio of over 1 means the property generates enough income to cover its debt obligations. Host Financial can finance deals with DSCRs .75 or below. 75 to .99, 1.00+, 1.25+ and above. In the rate calculation DSCR ratio plays a factor so for the best rates not withstanding of other qualifying factors (FICO, loan size, property type, LTV, etc), a DSCR ratio of 1.25 above would be considered a top tier bracket for rates.

Host Financial provides financing for various properties suitable for short-term rentals, including single family residences, condos, townhomes, duplexes, triplexes, quadplexes, and multi-family properties up to 20 units.

Host Financial typically requires a minimum credit score of 620 for short-term rental financing. However, for the best LTV, rate, and term options a credit score of 680+ is preferred.

The approval process at Host Financial involves submitting a request for a quote, selecting the loan term and option to move forward with, proceeding with an application, providing documents for under writing such as entity docs (if vesting under an entity), driver's license, 2 months bank statements for liquidity verification, insurance policy quote, title report, and payment for appraisal inspection. Once borrower files, insurance policy, title reports, and appraisal report is submitted the loan will go into final underwriting and qualify control. Once approved, we prioritize a swift and efficient closing process that takes five to ten business days.

Host Financial offers flexible loan terms tailored to the unique needs of short-term rental investors. Choose from 30 and 40 year amortization options with 5/6arm, 7/6 arm, 10/6 arm, 10 year IO, and 30 year fixed options.

Yes, a down payment is required. The amount may vary based on factors such as credit score, property type, and loan amount. Host Financials' team collaborates with you to determine the most favorable terms for your specific situation. Typical down payments range from 15 to 25% down.

No, once Host Financial finances the property, you have the freedom to use it for short-term rentals as planned. However, it's important to consider and comply with local zoning and homeowner association regulations.

Absolutely. Host Financial takes into account projected rental income when evaluating your loan application from our partners at AirDNA.co and Rabbu.com.

Host Financial offers short-term rental financing with prepayment penalties ranging from 1 year to 5 years. Structures include option from a 5% or 3% flat prepayment penalty each year for the lenght of the pre-payment period term or a declining structure such as a 5/4/3/2/1, 5/4/2, 3/21, 3/0/0 (examples, not all inclusive).

Host Financial is committed to a smooth and timely closing process. While timeframes may vary, we strive to close short-term rental loans efficiently, typically within 25 days. The main timeframe hurdles for closing a loan that are outside of the borrowers control is the turnaround time on appraisal reports. In a cases in which insurance, title, appraisal report, and borrower side documents are turned in quickly closing can occur within one to two weeks from then.

• Host Financial Gets STRs: Host Financial can qualify loans using STR income projections from AirDNA and Rabbu or use existing STR income history, not just market rents like most DSCR lenders that claim they can do STRs.

• One Stop Shop For DSCR Financing: In our current dynamic market environment, rates and even qualification guidelines change daily. Host has access to multiple capital partners and will price the entire market ensuring you get the best rates and terms available.

• Should rates changes mid process we can quickly switch capital partners to get a lower rate.

• Should guidelines change mid process you won’t be stuck with a lender that has one set of guidelines which could kill your deal and put you back to shopping the market. This ensures we have the highest chance of closing on deals where others can’t.

• Host Financial are the experts in STR financing: 95% of our deals are for Short Term Rental Investment Properties. Working with Host ensures you know you’re working with a lender that gets it and can get the deal done. We’ve seen and done it all.

• Comprehensive Income Assessment: Host prioritizes finding the most advantageous financing options for your investment, which for DSCR Loans means looking at all potential property income numbers: Market Rents, STR Income History, or STR Income projections to see what qualifies you for the best rates and terms.

• Privacy & Asset Protection: With the ability to vest in an entity you can protect your identity and assets from the risks and liability involved with running a short term rental.

• Most coverage: Host lends in 48 states nationwide.