The vacation rental market is growing, and investors are paying attention. According to AirDNA, vacation rental occupancy rates are expected to steadily climb back to pre-pandemic levels of around 56% by the end of 2025, supported by growing demand and limited new supply. As more travelers opt for unique stays over traditional hotels, short-term rental properties have become a top choice for investment.
Traditional mortgages often aren’t flexible enough for investors with seasonal income or non-traditional financial profiles. Non-QM vacation rental loans provide the solutions investors need to capitalize on these opportunities.
What Are Non-QM Vacation Rental Loans?
Non-QM vacation rental loans offer an alternative to traditional loans’ rigid requirements. Designed with flexibility in mind, these loans adapt to unique circumstances, including:
- Income derived from rental properties rather than salaried employment.
- Higher LTV ratios for acquiring high-value properties.
- A need for alternative documentation, like bank statements or property cash flow.
LendSure offers Non-QM solutions designed to help investors secure financing that fits their goals and the specific needs of vacation rental properties.
Use Cases for Non-QM Vacation Rental Loans
Non-QM vacation rental loans cater to a wide range of investor needs:
- First-Time Vacation Rental Investors: New investors can break into the vacation rental market by leveraging Non-QM loans to overcome traditional income verification hurdles.
- Experienced Portfolio Builders: For seasoned investors expanding their vacation rental portfolios, DSCR loans simplify the process by focusing on the property’s cash flow.
- Owners Looking to Refinance: Existing vacation rental owners can refinance with a Non-QM loan to access equity for additional investments or property improvements.
Why Non-QM Loans Are Perfect for Vacation Rentals
LendSure offers tailored Non-QM solutions that make it easier for brokers to help clients succeed. Key benefits include:
- Seasonal income? No problem. Unlike traditional loans that prioritize steady income, Non-QM loans, like DSCR loans, focus on the property’s revenue potential. This makes them perfect for vacation rental owners with fluctuating income.
- Higher loan limits for premium properties. Vacation rentals often involve properties in high-demand locations with higher price tags. Non-QM loans provide access to larger financing amounts, enabling investors to compete for prime real estate.
- Flexibility in documentation. Non-QM loans accept alternative income verification, removing barriers for investors who don’t have traditional W-2s or tax returns to qualify.
The Benefits of Choosing LendSure’s Non-QM Loan Programs
LendSure stands out with its comprehensive approach to Non-QM lending, offering unique benefits for brokers and their clients:
- Streamlined Underwriting: Our underwriting process considers alternative income documentation, making it easier for investors to qualify.
- Pre-Qualification Typically Within 24 Hours: Speed matters in competitive real estate markets. With LendSure, investors can secure pre-qualification quickly, giving them an edge in acquiring prime vacation properties.
- Customizable Loan Solutions: Whether it’s a DSCR loan, Condotel loan, or other Non-QM options, we work to provide financing that aligns with the borrower’s goals.
About LendSure’s DSCR Loan Program
LendSure’s DSCR loan program focuses on the property’s cash flow instead of the borrower’s income, making it an ideal choice for vacation rental investors.
- For 1-4 unit properties, loans go up to $3,000,000 with up to 85% LTV for purchases and 75% for refinances.
- For 5-10 unit properties, loan amounts reach $2,000,000 with up to 75% LTV for purchases or refinances and 60% LTV for cash-out refinances.
Other highlights include financing for up to 10 properties per investor, interest-only qualification with a 10-year IO option, and eligibility for non-warrantable condos and condotels. With flexible terms and fast closings, the DSCR program is a powerful tool for brokers working with investors.
Don’t Forget About LendSure’s Condotel Loans
Condotel properties, a hybrid of condominiums and hotels, are an increasingly popular option for vacation rentals. These unique investments require a specialized approach to financing. LendSure’s Condotel loan program provides the flexibility and speed your clients need to secure these high-demand properties.
With up to 75% LTV for purchases and refinance options for rate-and-term or cash-out loans, this program is tailored for investment properties and second homes. LendSure’s streamlined pre-qualification process, supported by the Bank Statement loan program, delivers results typically within 24 hours, giving your clients a competitive edge in the market.
Position Yourself as a Resourceful Broker with LendSure
Offering Non-QM vacation rental loans lets you provide flexible financing solutions that help your clients succeed in a competitive market. With LendSure’s programs, you can:
Help Clients Act Quickly
With fast pre-qualifications and flexible terms, your clients can secure properties in competitive markets without delay.
Offer Solutions for Every Situation
Non-QM loans are perfect for clients with seasonal income, multiple properties, or unconventional financial documentation, making it easier to get them the financing they need.
Build Long-Term Relationships
Personalized options build trust and loyalty, keeping clients coming back for future investments.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
