Can my Airbnb income help me qualify for a home loan?

Below is a practical, plain-English walkthrough for VA, Conventional, FHA, and DSCR loans so you can see where Airbnb/STR income fits (and where it doesn’t).

Big Picture: How Lenders Look at Airbnb / STR Income

Before we break it out by loan type, here’s what almost every lender cares about:

Stability & history
- Is the income stable and likely to continue?
- For agency loans (VA, Conventional, FHA), this usually means tax returns and at least 12–24 months of history.
How it shows up on paper
- Most commonly:
  - Schedule E on your federal tax return (Form 1040) for rental income.
  - Sometimes supporting items like 1099s or Airbnb payout statements.
How the property is classified
- Primary residence – where you actually live.
- Second home / vacation home – you occupy it yourself part of the year; not primarily a rental.
- Investment property – bought mainly to generate rental income.
Local rules & HOA restrictions
- Some cities/HOAs limit or ban short-term rentals altogether; lenders don’t love income that depends on something that might be outlawed or restricted.

With that foundation, let’s look at each loan program.

Conventional Loan: Airbnb/STR Friendly (With Proper History)

Conventional loans (Fannie Mae / Freddie Mac) are usually the most flexible and standardized for using short-term rental income — if you can document it.

Primary Residence (Conventional)

Existing Airbnb income in your current home
- If you’ve been renting a room, basement, or ADU and reporting the income on your tax returns as rental income, lenders can often use it as qualifying income.
- Fannie/Freddie generally want at least 12 months of history, and for true short-term rental–type income, many lenders look for up to 24 months, especially if it’s your main side hustle.
Future Airbnb income in the new home
- If you plan to Airbnb a spare room but have no history yet, most conventional lenders won’t count that projected income to qualify you for a primary residence purchase.
- You usually must qualify based on your job, other stable income, and any existing rentals that already show up on your tax returns.

Second Home (Conventional)

Agencies require that a second home be primarily for your personal use, not run like a hotel.
What typically happens:
- You qualify mainly on your regular income.
- Existing Airbnb income from other properties (with history and tax returns) may be used as rental income like any other property.
- Projecting that your new “second home” will be a heavy Airbnb can threaten its second-home classification and push it into investment property territory.

Investment Property (Conventional)

This is where Airbnb/STR income is most naturally at home.
Lenders will typically:
- Use tax-return history (Schedule E) from existing STR properties.
- Use market rent schedules from the appraiser (Form 1007/1025) to estimate rents for new long-term rentals.
For pure STRs (nightly Airbnbs), many lenders still want:
- Solid tax-return history; and
- Evidence that the income is stable and likely to continue.

FHA Loan: Much Stricter on Short-Term Rentals

FHA is designed for owner-occupied primary residences and has a much narrower view of short-term rentals.

FHA on Property Use

FHA rules say the property can’t be primarily used for transient or hotel-style occupancy. That means no:

Hotels, motels, bed and breakfasts
Condotels or tourist houses
Vacation homes or other properties used mainly for stays under 30 days In other words, FHA doesn’t like it if you’re effectively running a mini-hotel out of your FHA-financed home.

FHA and “Boarder” / Roommate Income

FHA does allow some boarder/roommate income in an owner-occupied property, and recent guideline changes have made this more flexible:

Can be counted as effective income if:
- You have at least 12 months of history receiving that rental/boarder income.
- It is currently being received.
- It typically can’t exceed a set percentage (for example, 30%) of total effective income, depending on the lender’s implementation of HUD guidance.

Key takeaway:

Occasional room rentals with history may help a bit under FHA, but:
- FHA loans are not meant for properties primarily used as short-term rentals.
- Projected future Airbnb income on a new FHA home generally won’t be counted to qualify.

VA Loan: Owner-Occupied First, Rental Income Second

VA loans are a phenomenal benefit, but they are primary-residence loans, not vacation-home or pure investment loans.

VA Occupancy and Property Type

The Veteran must intend to occupy the property as a primary residence within a reasonable time after closing.
Using VA to buy:
- A true second home or
- A property that is primarily an Airbnb business
  is not what VA is designed for.

VA and Rental Income (Including STRs)

VA’s handbook recognizes rental income as a valid source of income when it’s stable and documented, and it allows some income sources that don’t meet “effective income” rules to be used to offset debts if there’s at least a 12-month history.

Practically, that means:

Existing rental income (long- or short-term):
- If it shows up on tax returns (Schedule E) with a consistent history, a VA underwriter can usually treat it similarly to other rental income.
- In some cases, if it doesn’t fully meet “effective income” standards, the lender might still use it to offset the mortgage payment or other debts rather than count it as full income.
Future Airbnb income on a new VA primary residence:
- Like FHA, projected Airbnb income typically won’t be used to qualify.
- The focus is: can you afford the home based on your job income + any existing established rental income?
Second VA purchase with a current VA home converted to a rental:
- Once you move out and legitimately rent that previous VA home (long- or possibly short-term), documented rental income may be considered subject to history, residual income, and underwriting guidelines.

DSCR Loan: Built for Rental & Airbnb-Type Income

Debt Service Coverage Ratio (DSCR) loans are a different animal.

Instead of qualifying you based on your W-2s or tax returns, DSCR lenders look primarily at:

Property income ÷ Property payment (PITI + HOA + insurance)

If that ratio meets their threshold (often around 1.0–1.25+, depending on the lender), the loan can work.

DSCR and Short-Term Rentals

DSCR loans are usually for investment properties only, not primary residences or true second homes.

For STRs:

Many DSCR lenders will:
- Use actual Airbnb/STR booking history (payout statements, 12–24 months if available), and/or
- Use appraiser-supported market rent estimates for short-term rentals.
They care most about:
- How much the property can realistically gross, and
- Whether net income covers the payment at their required DSCR level.

This makes DSCR loans especially attractive for:

Investors scaling an Airbnb portfolio
People whose personal income is strong but messy on paper
Borrowers who don’t want to (or can’t) qualify on traditional DTI

Quick Comparison: Where Airbnb / STR Income Helps Most

Assuming income is real, documented, and allowed by local/HOA rules:

Loan Type	Property Type	Can Existing Airbnb/STR Income Help Qualify?	Can Projected Airbnb/STR on the New Property Be Used to Qualify?
Conventional	Primary Residence	Yes, with tax-return history and stability	Generally no; you must qualify without it
	Second Home	Yes, for other properties with history	Generally no; heavy Airbnb use may reclassify as investment
	Investment Property	Yes, rental income is central (history helps)	Sometimes, via rent schedules; true STR projection varies by lender
FHA	Primary Residence only	Limited boarder/roommate income allowed with history	No for true STR focus; property can’t be primarily transient
VA	Primary Residence only	Yes, if stable and well-documented; may offset debts	Rarely; projected STR income on a new VA primary is usually not used
DSCR	Investment Property	Yes, it’s often the main factor	Yes, if DSCR works based on market/pro forma income

How to Think About Your Strategy

A few practical guidelines:

If you’re a house hacker (renting rooms/ADUs in your primary):
- Conventional loans are typically your most flexible option for counting Airbnb income once it’s seasoned on your tax returns.
- FHA and VA expect the home to be truly owner-occupied, with only limited room for boarders or rentals.
If you’re buying a second home and “might Airbnb a little”:
- Don’t build your entire approval strategy on projected Airbnb income.
- Over-emphasizing rental use can knock you out of the “second home” box and into investment territory.
If you’re building an Airbnb portfolio:
- Conventional and DSCR loans are usually the primary tools.
- DSCR is often the best fit when you want the property’s income to do most of the qualifying work.
Always layer in local rules
- City ordinances, licensing, and HOA bylaws can make or break an STR strategy, regardless of what the loan program allows.

If you’d like help mapping this to your specific situation — primary home, second home, or building an Airbnb portfolio — the next step is to sit down with a loan officer who understands both mortgage guidelines and the short-term rental world. Let's talk!

About Between Two Doors

Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask "right brain" questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.

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