Florida Short Term Rental Loans

Build Wealth with Airbnb or Short-Term Rental Property Type Investments

A short term rental loan pertains to any form of financing accessible to real estate investors for acquiring a property designated for use as an Airbnb or short-term vacation rental. Typically, a minimum down payment of 20% is required for these loans when purchasing an Airbnb type property. At Fidelity Home Group, we specialize in short term rental property loans, and our team is well-versed in the associated advantages.

When seeking financing for your short term rental property, acquiring the necessary cash for your down payment can be facilitated through options like a home equity line of credit or a cash-out refinance on your primary residence.

Short Term Rental Loan Program Highlights:

Loan amounts up to $6 Million
Minimum FICO 680
Option for No W-2s or Tax Returns Required
Option to use 12 or 24 months of Bank Statements for income
DTI up to 50% with compensating factors
ARM and 30 Year-Fixed Options available
Purchase, Rate Term refi, Cash-out refi and Debt Consolidation available
Condo Units must have a kitchenette/kitchen with a stove top
Homeowners Association must not limit the days the unit can be accessed
Homeowners Association must have an acceptable reserves account
Homeowners Association must not have any structural litigation in process
Property types allowed: Single Family Residence, Townhome, Duplex – 2 units, Triplex – 3 unit, Quadplex – 4 units
Non-warrantable condominiums including condotel properties
$200,000 minimum loan amount

Not allowed:

Properties or Condo Developments with Structural deficiencies and certain pending litigation
Properties or Condo Developments Incomplete construction of the subject phase
Condo Units without a stove top
Homeowners Association with $0 reserves
Homeowners Association limits the number of days the property can be accessed

Approved/Evaluated Case-by-Case:

Low HOA budget reserves – HOA delinquencies exceeding 15%
Condos with less than 500 square feet allowed at a max 70% LTV
Condos with kitchenettes allowed on a case-by-case basis

Florida Short Term Rental Loan FAQ’s

Why do I need Fidelity Home Group for an Airbnb type of loan?

With Florida having a variety type of condos, a lot of clients utilize the waterfront, resort and tourism condos as Airbnb properties to build wealth. At Fidelity Home Group, we have extensive experience with all types of Florida investment properties used for Airbnb properties. This include Non-Warrantable and Condotel property types.

Is it possible to use the short term rental income for loan qualification?

Yes! Proof of income is an option for our short-term rental loan program. We also have the option to utilize the short-term rental income and the tradition income document for loan qualification.

How can I ensure my short term rental property is permitted?

Numerous Florida cities and Home Owner Associations have regulations governing the operation of short-term rentals, with some requiring specific licenses. Additionally, certain areas may have outright bans on short-term rentals. To confirm that you are investing in a Florida market where your property can be used as an Airbnb, it’s crucial to check with your local municipality, building department, and Home Owner Association relevant regulations.

What insurance coverage is necessary for a short term rental investor?

As an example, when listing your property on the Airbnb platform, you benefit from the company’s included “host protection” insurance. However, with a mortgage lien on the property, you must also secure a separate insurance policy covering the full replacement cost of the property as an additional precaution and six months of rent loss.

Is it possible to refinance my short-term rental loan in the future?

Certainly, you have the option to refinance your short-term rental loan if you wish to modify your interest rate, terms, or tap into your property’s equity at a later stage. At Fidelity Home Group, we provide both rate-and-term and cash-out refinancing options for short term rental properties.

DISCLAIMER: Airbnb is a federally registered trademark of Airbnb, Inc. Fidelity Home Group, a mortgage corporation, is not affiliated with, sponsored by, in partnership with, or has an endorsement by Airbnb, Inc. or its affiliated entities. All references to “Airbnb” on this webpage primarily refer to a property being used as a short term rental property on the Airbnb Marketplace platform.