Updated about 2 years ago on .
Easy Street STR Lending Program
Easy Street Capital is America’s leading lender for properties utilized as Short Term Rentals (STRs), the fastest growing frontier in real estate investing.
For our Short Term Rental Loans (STR Loans), We combine the traditional 30-year fixed rate residential mortgage product with flexible and hassle-free underwriting, delivering quick and efficient 30-day closes and non-intrusive documentation requirements (no tax returns, no income verification).
A forward-thinking lender, we have pioneered creative, flexible and data-driven qualification for our STR Loans. As one of the first lenders to utilize the AirDNA Rentalizer qualification tool (while staying consistent through market volatility when other lenders pulled away), we are proud to offer our borrowers free access below! The Rentalizer Tool provides incredibly strong and consistently updated data including projected Revenue, Occupancy and Average Daily Rate for any property in the United States!
The Easy Street Difference
Why are our Short Term Rental Loans different than the rest?
Vs. Conventional Lenders
Conventional Lenders are a traditional option for short term rental investment properties and can offer some of the lowest rates available. However – those low rates come with many strings attached – oftentimes including the headache and hassle of seemingly endless paperwork. Conventional Loans can be a great option for some, especially those first starting out or investing on the side with a normal W-2 occupation. However for STR Investors looking to scale and take the full journey to financial freedom through short term rentals investing, Easy Street's STR Loan program offers these advantages versus Conventional Loans:
No DTI Ratio – Easy Street Capital STR Loans do not use DTI Ratio in qualifying and underwriting your loan
No Tax Returns – Easy Street Capital STR Loans do not require any tax returns (personal or business) when underwriting your loan
LLCs/Partnerships OK – Short Term Rental Loans by Easy Street Capital allow for you to borrow under an LLC or other entity structure instead of in your personal name – thus allowing LLC protection, the ability to invest with partners and protection of personal credit (loans do not show up on personal credit reports when borrowing through an LLC)
No Concentration Limits – Conventional Lenders following Agency Guidelines have an absolute maximum of 10 rental properties which stifle short term rental investors trying to scale. Easy Street Capital Short Term Rental Loans have no such limits
Flexible Qualification and Underwriting – Conventional Lenders are harshly limited in any flexibility on qualification, especially around rental revenue on short term rentals. Easy Street Capital uses forward-thinking and proprietary underwriting methodology for short term rental loans and qualifies based on the true elevated income potential of short term rentals
Vs. Second Home Loans
Second Home Loans are another popular option to finance short term rentals. People are particularly drawn to this loan product due to the "10% Down" requirement with a maximum LTV of 90% (higher than the typical 20% minimum down payment required for DSCR Loans). However, there is one large drawback and it is a big one. Rules for this loan product require that the property is rented no more than 180 days per year or generally half the time! This makes it so generating enough cash flow and return on investment as a short term rental practically impossible (unless you are breaking the law, NEVER advisable). Thus, these loans are really not geared towards short term rental investors, rather for people that want a vacation home that can also be rented out from time to time. Easy Street's STR Loan program offers these advantages versus Second Home Loans:
No DTI Ratio required for qualification
No Tax Returns required for underwriting
No Restrictions on Days Rented Per Year – can be rented year-round (365 days per year)
Allows Operations from Property Management Company – Second Home Loans restrict the borrower from utilizing any property management company for short term rental operations, a necessary tool in the toolkit of many STR investors that is totally allowed under Easy Street's Short Term Rental Loans program
Restricted to Single Family Residences – Only “one-unit” properties qualify for second home loans, while Easy Street Capital will finance short term rental properties up to 10 Units!
Out of State Investing – Second Home Loans require that the borrower “live a reasonable distance from the buyer’s primary residence” while Easy Street Capital allows for Short Term Rental Loans across the United States without regard to distance from home, and also doesn’t even require the owner to own a primary home at all (renting is OK!).
Vs. other "DSCR" Lenders
are typically the go-to option for Short Term Rental Loans because of the easy qualification and the emphasis on the income potential of the properties rather than personal DTI. But not all DSCR Lenders are created equal when it comes to STR Loans. Generally, DSCR Lenders fall into three buckets when it comes to Short Term Rental Loans – 1) Traditional DSCR Lenders that finance Long Term Rentals Only, 2) DSCR Lenders that finance short term rentals, but with traditional and conservative restrictions on qualifications (such as requiring it to also qualify as a long-term rental or requiring at least 12 months of operating history) and 3) Forward-Thinking DSCR Lenders that are committed to the STR space and tailor their programs to satisfy the needs of short term rental investors. Easy Street Capital is proud to be the leader of the small group of DSCR Lenders that fully embraces Short Term Rentals and can lend on STRs that others can’t! Examples of why Easy Street Capital’s industry-leading STR Loan program is a step above other DSCR Lenders include:
Qualify DSCR with Projections – Easy Street Capital was one of the first lenders to embrace the latest technology in the STR space and utilize AirDNA projections to qualify loans – where most DSCR Lenders will only underwrite based on how the property will perform as a long-term rental (even in vacation markets where STR is the norm!). This allows Easy Street Capital to make deals work based on the true potential while most other lenders would turn them away
“AirBnBRRRR” Friendly – Many investors have combined the popular “” of real estate investing with short term rentals, rehabbing a property in need of renovations using cash or a and then once ready, utilizing the property as an STR instead of renting on a long-term lease before refinancing into long-term, lower-rate debt. Even most "STR-friendly" DSCR Lenders will not allow the cash-out refinance until 12 months of operations, thus sticking investors with expiring, high-rate loans. Easy Street is different, we allow cash-out refinances based on STR projections after just one booking! (no need to wait an entire year). This allows our borrowers maximum ability to scale and grow!
Seasonal / Vacation / Rural Markets OK! – Even as more and more DSCR Lenders have started to embrace the short term rental space, they still throw up roadblocks in many markets, especially those with heavy seasonal variances or in smaller towns. Another Easy Street Difference is that we understand that seasonal and rural markets can provide outsized returns – even if its packed into just a few months per year! Easy Street Short Term Rental Loans do not discriminate against seasonal or vacation markets (not a factor in our qualification process) and will lend in rural areas!