Home Loans for Short Term Rental Purchase w/ High DTI

[Wilson Vanhook]

Young investor here and in fact this is my first post on BP. I currently own my primary residence and one long term rental property I acquired by first owning as a primary residence. I am now looking to continue expanding by buying a property to use as a vacation rental (airbnb vrbo etc). My DTI is high but I hear there may be lenders out there that don't even consider DTI for these types of loans on vacation rentals. Also how do these lenders approve loans without considering DTI?

[Nick Velez]

@Wilson Vanhook

The loan you are likely referring to is a DSCR loan. The appraiser will determine a market rent for the property you are looking to purchase and the lender is basically looking for that rent number to cover the PITI of the property. Feel free to message me if you have any specific questions!