which are the best lenders for STR?

Question

Does anybody have a good experience with short-term rental financing in rural areas?Which are the best lending companies for Airbnb?

Erik Estrada · Answer

Hey Carlos,

There is a lot of grey area in what is considered rural or not rural. Some lenders might not consider it rural as long as it meets their population density requirement.

Happy to connect

Nick Belsky · Answer

@Carlos Pelegrina

I work with a lender who did an STR on 40 acres out near Yellowstone with a log cabin on it.  They will lend on Rural but will knock the LTV down quite a bit.  How much? Depends on the specifics and how strong of an STR market the property is in.  I work with several real STR lenders in general, but the one or two that will lend on rural are going to "punish" you for it.  If you are looking for max LTV loans on Rural STRs, I am afraid you won't find it easily.

Cheers!

Robin Simon · Answer

Check out BiggerPockets Featured Mortgage Lenders - they have a section on this exact thing

https://www.biggerpockets.com/...

BP Find A Lender Tool also has pages with reviews, borrower experiences, lender info as well

https://www.biggerpockets.com/...

Carlos Pelegrina · Answer

Just my lender doenst do these type of locatinos, its a house in 5 acres abut there are properties 5 minutes away.. difficult to have comps because are all over the place but, I have a licens e and homes sale very well in the area

Carlos Pelegrina · Answer

They want to have clear comps.. I have license RE license and Know for how much properties go in that area, but my lender I guess considers risky these places. there are comps but spread out.

Alex Bekeza · Answer

@Carlos Pelegrina Does the CFPB say that the address is rural/underserved or is it just a bit remote? Is there a prevalence of sales comps?

which are the best lenders for STR?

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