Two numbers set how much you can borrow on an Airbnb: whether the property’s income covers the payment, and how much of the value the lender will finance. The first is the DSCR (debt-service coverage ratio); the second is the loan-to-value. Whichever is tighter caps what you can borrow on an Airbnb — and neither one is your personal income.
Once you see how those two levers work, the whole “how much can I get” question stops being a mystery.
Lever one: does the income cover the payment?
This is the DSCR — the property’s projected monthly income divided by its monthly payment (principal, interest, taxes, insurance, and any HOA dues). A ratio of 1.0 means the income exactly covers the payment. Most short-term rental programs want to see at least around 1.0 to 1.25, though it varies by lender.
A quick illustration: if the AirDNA projection puts the property’s income at $4,000 a month and the payment on the loan you want works out to about $3,200, that’s a 1.25 ratio — comfortably qualifying. If the payment were higher than the income, the ratio would dip below 1.0 and the loan would need adjusting.
Lever two: how much of the value will they lend?
Even when the income easily covers the payment, the lender caps the loan at a percentage of the property’s value — the loan-to-value. On short-term rentals that’s typically 75%–80%, which is the flip side of the 20%–25% down payment. An appraisal sets the value the percentage applies to.
The lower number caps what you borrow on an Airbnb
Your maximum loan is whichever lever is tighter. A property that cash-flows strongly but appraises low is capped by value. A property worth plenty but with thin projected income is capped by DSCR. Most deals are limited by one or the other, and knowing which tells you exactly what to adjust.
What to do if the income is tight
If the DSCR comes in below the floor, the most direct fix is a larger down payment. A bigger down payment means a smaller loan, a smaller payment, and a higher ratio — often enough to push a borderline deal over the line. It’s the lever most in your control.
A typical deal
A scenario I see often: an investor eyeing a short-term rental with a strong AirDNA projection. The income clears the DSCR comfortably, so the loan is capped by the 75%–80% loan-to-value instead — meaning the down payment, not the income, sets the final number. We run both levers up front so there are no surprises at the appraisal.
Ready to look at your deal?
The fastest way to know your number is to run the actual projection and value. Tell us about your deal and we’ll size it — in English or Spanish.
By Andres Jara — Alpha Equity Lending (NMLS #1855083). 20+ years in real estate finance, an MS in Finance, and an active South Florida investor and landlord.
