🧮 STR Loans Explained: The One Move That Can Make (or Break) Your Next Deal

🧮 Which STR Loan Is Actually Best for Investors?

Most investors don’t lose deals because they can’t find properties.
They lose them because they’re using the wrong loan — or worse, no pre-approval at all.

Different STR loan types unlock completely different levels of buying power, cash flow, and flexibility. The trick is knowing which one aligns with your exact strategy.

That’s why we connect investors with our vetted STR loan partner — who specializes in Airbnb-friendly financing and helps you compare every option side-by-side.

👉 Speak to our STR Loan Partner & Get Pre-Approved Before You Start House Hunting

Getting pre-approved now makes you a dramatically stronger buyer — and positions you to move instantly when the right deal hits.

🏡 Conventional (Second Home) Loan

Best for: Investors with strong income who want the lowest rates and minimal restrictions.

Pros:
✅ As little as 10% down
✅ Lowest interest rates available
✅ No prepayment penalties
✅ Excellent long-term wealth-building option

Cons:
❌ Cannot use STR income to qualify
❌ Must be in your personal name (no LLC)
❌ Counts against your personal DTI
❌ Mortgage insurance required under 20% down

💰 DSCR Loan

Best for: Investors who want to scale fast and qualify based on property income alone.

Pros:
✅ Qualify using projected Airbnb income (not your personal income)
✅ No tax returns, W2s, or DTI requirements
✅ Can close in an LLC
✅ Ideal for scaling multiple STRs

Cons:
❌ Typically requires 20–25% down
❌ Higher interest rates vs conventional loans
❌ Prepayment penalties typically apply
❌ Appraisal and income projections matter heavily

🔀 Hybrid STR Investor Loan (The Sweet Spot)

Best for: Investors who want flexibility, lower down payments, and strong approval odds.

Pros:
✅ As little as 15% down
✅ Allows LLC ownership
✅ Uses BOTH personal income and STR income to qualify
✅ No mortgage insurance — even under 20% down
✅ Often easier to qualify vs conventional loans

Cons:
❌ Requires income documentation
❌ Prepayment penalties may apply (typically 1–5 years)

⚡ Why Pre-Approval Is a Massive Advantage

The best STR deals move fast. Sellers prefer buyers who are fully ready to close.

Investors who are already pre-approved:
• Win more deals
• Close faster
• Negotiate from a position of strength
• Move instantly when opportunity strikes

👉 Get Pre-Approved with our STR Loan Partner Before You Start Searching

You’ll get personalized loan options based on your income, goals, experience, and target property.

🧠 The Bottom Line

All three loan types work.
The difference is choosing the one that maximizes your buying power, cash flow, and long-term scaling ability.

Our STR-focused loan partner helps investors structure financing the right way from day one — so you can buy smarter, scale faster, and avoid costly mistakes.

👉 Connect with our STR Loan Partner & See Your Options

Because the right loan doesn’t just help you buy one property — it helps you build an entire portfolio.