Creative Financing for Airbnb in Northern Virginia

[David Cherkowsky]

Hi all, I'm interested in thoughts on creative financing options for an Airbnb in Northern Virginia. A property is available off market that seems to be a great deal. I am interested in living in the basement, and renting out the upper unit on Airbnb. The property is likely a little too expensive for me to qualify for with a conventional loan based on DTI. However, I'm wondering if anyone has thoughts on creative financing. Maybe a DSCR loan? Any thoughts would be appreciated.

[Jay Hurst]

Quote from @David Cherkowsky:

Hi all, I'm interested in thoughts on creative financing options for an Airbnb in Northern Virginia. A property is available off market that seems to be a great deal. I am interested in living in the basement, and renting out the upper unit on Airbnb. The property is likely a little too expensive for me to qualify for with a conventional loan based on DTI. However, I'm wondering if anyone has thoughts on creative financing. Maybe a DSCR loan? Any thoughts would be appreciated.

 @David Cherkowsky The above is absolutely correct, BUT do not assume you cannot qualify for a conventional loan. Make sure a competent LO with a NMLS number runs the numbers from you. My team has conversations all the time with borrowers, especially those that own real estate, that thing DSCR options are their ONLY options. But, guess what they are not loan officers or underwriters so they turn out to be wrong. (do not trust me to build the house, but I do know how to qualify you FOR the house.) Don't disqualify yourself without talking to an expert.