Based on conversations with a lender that my mom and I have both used in the past, it seems like the norm is that STR income isn't considered in your debt to income ratio when getting a loan. With typical long term rentals, lenders in our area will take at face value the proposed monthly rental price and figure in 75% occupancy as part of the income for the unit.
The lenders we have worked with said that pre-Covid, short term rental income was not even considered until there was a history of 1 or 2 years of rental income. Now they are saying that mid-Covid they won't count short term rental at all.
This is my question: How do traditional lenders in the Gatlinburg/Pigeon Forge area view potential STR income when applying for financing? Since STR have been around for decades in this area, I'm wondering if it's viewed differently by the lenders in the area. I read on another forum thread that if you are purchasing a property that has previously been a STR, the lender will use that history. Any insight (or suggested lenders to reach out to) that you can provide would be greatly appreciated!