Whether you are acquiring your first vacation rental or scaling a portfolio of short-term rental properties, On Top Funding connects you with competitive DSCR loan programs designed specifically for STR investors at every experience level.
For purchase and rate/term refinance transactions. Up to 75% LTV available for cash-out refinances.
Individual property loans from $100,000 to $3,500,000. Portfolio loans up to $5,000,000 for three or more properties.
Full 30-year fixed rate mortgage with interest-only options available. DSCR calculated on interest-only payment for the first 10 years.
Minimum qualifying credit score of 640. Flexible underwriting available for borrowers with recent credit events.
No minimum debt service coverage ratio required. Rental income projections used to qualify the property based on market data.
Single-family, condos, townhomes, and multi-unit properties up to 10 units. Vacation rentals and furnished properties eligible.
Key parameters for our short-term rental financing programs. Terms vary by borrower profile, property type, and project scope.
| Parameter | Details |
|---|---|
| Loan Purpose | Purchase, Rate/Term Refinance, Cash-Out Refinance |
| Max LTV (Purchase/Refi) | Up to 80% |
| Max LTV (Cash-Out) | Up to 75% |
| Loan Amounts | $100,000 - $3,500,000 (Portfolio up to $5,000,000) |
| Loan Term | 30-Year Fixed Rate |
| Interest-Only Option | Available (10-year IO period) |
| Minimum DSCR | No minimum required |
| Minimum Credit Score | 640 FICO |
| Property Types | SFR, Condos, Townhomes, Multi-Unit (up to 10 units) |
| Cash Reserves | 3-9 months PITIA (liquid assets) |
| Rural Properties | Up to 70% LTV |
| Closing Timeline | As fast as 30 days |
| Vesting | Individual or LLC |
| Prepayment Options | Multiple structures available (5/4/3/2/1, 3/2/1, 2/1, or none) |
Short-term rental investing involves purchasing residential properties and renting them on a nightly or weekly basis through booking platforms. Unlike traditional long-term rentals with 12-month leases, STR properties typically generate higher gross revenue per unit, particularly in markets with strong tourism, business travel, or seasonal demand.
Investors in this space range from first-time buyers looking to house-hack a vacation property to experienced operators managing portfolios of 10 or more units across multiple markets. The key to success is understanding the local regulations, seasonal revenue patterns, and total operating costs before committing capital.
On Top Funding works with multiple capital sources that specialize in short-term rental financing. Our DSCR loan programs qualify the property based on its projected rental income rather than the borrower's personal W-2 or tax returns. This makes it possible for self-employed investors, LLC-held properties, and portfolio builders to access competitive 30-year fixed rate financing without the documentation burden of conventional lending.
From application to closing in as few as 30 days.
Complete our streamlined online application with basic property and borrower details. No tax returns or W-2s required for DSCR qualification.
We analyze the property's projected short-term rental income using market data and comparable rental performance to determine DSCR qualification.
Once approved, you receive a clear term sheet outlining your rate, LTV, loan amount, prepayment structure, and all closing conditions with no hidden fees.
A third-party appraisal confirms the property value while our underwriting team completes due diligence and prepares your file for closing.
Sign your closing documents and receive funding. Start generating rental income from your short-term rental property.
We understand short-term rental underwriting, seasonal income patterns, and the unique requirements of vacation rental financing.
Access to a network of lenders who specialize in STR properties, giving you competitive rates and flexible program options.
Our programs have no minimum debt service coverage ratio, making it easier to qualify properties in emerging or seasonal markets.
DSCR qualification is based on the property's rental income, not your personal tax returns or W-2s. Ideal for self-employed investors.
Whether this is your first STR acquisition or you are scaling a portfolio, we structure financing around where you are in your investment journey.
Efficient underwriting and processing means you can move from application to closing in as few as 30 days.
A DSCR (Debt Service Coverage Ratio) loan qualifies the property based on its rental income rather than the borrower's personal income. For short-term rentals, projected nightly or weekly rental revenue is used to calculate the property's ability to cover the mortgage payment. This means you do not need to provide tax returns, W-2s, or employment verification. The DSCR is calculated on the interest-only payment for the first 10 years of the loan term.
No. Our lending partners work with both first-time STR investors and experienced operators. While experience may help you secure more favorable terms, it is not a requirement to qualify. We work with investors at every stage of their STR journey.
Yes. Properties can be vested in an individual name or an LLC. Many STR investors prefer LLC ownership for liability protection and tax planning purposes. Our programs accommodate both structures.
Borrowers are generally required to document 3 to 9 months of PITIA (principal, interest, taxes, insurance, and association dues) in liquid asset reserves. The exact reserve requirement depends on the loan amount, LTV, and borrower profile.
Multiple prepayment structures are available to match your investment strategy. Options include a standard 5/4/3/2/1 step-down structure, reduced structures like 3/2/1 or 2/1, and in some cases no prepayment penalty at all. If you plan to sell or refinance within a specific time frame, we can structure the prepayment terms accordingly.
Yes. Portfolio or blanket loans are available for investors with three or more properties. Portfolio loan amounts range from $225,000 to $5,000,000, allowing you to consolidate multiple STR properties under a single loan for simplified management and potentially better terms.
Get started with a streamlined application or schedule a consultation to discuss your STR investment strategy.
All loan programs are subject to borrower and property qualification. Terms, rates, and availability may vary based on creditworthiness, property type, market conditions, and other factors. On Top Funding is not a direct lender. We work with multiple capital sources to connect investors with competitive financing options. This is not a commitment to lend. Investing in real estate involves risk, and there are no guaranteed outcomes. Consult with qualified legal and tax professionals before making investment decisions.