How Much Down Payment Do You Need to Buy an Airbnb?

Buying an Airbnb or short term rental is not like buying a traditional home. Down payment requirements vary depending on loan type, investor experience, and financing strategy.

Here’s what Airbnb investors need to know to avoid surprises and structure the right financing.
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Quick Answer / TL;DR

• Conventional loans: 10–20% down; PMI applies if under 20%
• DSCR / STR investor loans: Down payments often start at 15%; PMI often not required
• Hybrid STR loans: Usually 15% down; first-time Airbnb investors welcome; PMI often waived

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1. Conventional Loan Down Payment

Conventional loans follow traditional investment property rules:

• Owner-occupied: Can sometimes qualify with 10% down
• Investment property / Airbnb: Usually require 20% down
• Mortgage insurance (PMI): Required if down < 20%

Important: Airbnb income usually cannot be used to reduce your down payment or qualify. You must meet personal income and DTI requirements.

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2. DSCR / STR Investor Loan Down Payment

DSCR loans are designed for short term rental investors:

• Down payments commonly start at 15%
• Loan qualification is based on property income, not personal income
• PMI is usually not required, even if down < 20%
• LLC ownership is often allowed, which helps investors scale

This makes DSCR loans ideal for investors who want to grow multiple short term rental properties.

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3. Hybrid STR Loan Down Payment

Hybrid STR loans combine conventional and DSCR rules:

• Usually require 15% down
• Count personal + Airbnb income for qualification
• PMI may be waived even under 20% down
• Good option for first-time Airbnb investors
  
  
  
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Tips for Lowering Your Down Payment

1. Check if the lender offers portfolio or investor loan programs
2. Combine personal income and Airbnb income if allowed
3. Consider DSCR or hybrid STR loans instead of conventional for lower down payments
4. Explore LLC ownership programs to keep loans off personal credit
   
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Key Takeaways

• Conventional loans: Better for owner-occupied or single Airbnb properties
• DSCR loans: Best for investors relying on Airbnb income to qualify and scaling multiple rentals
• Hybrid STR loans: Flexible for combining personal + Airbnb income

Choosing the right loan and down payment structure is critical to maximizing cash flow, minimizing costs, and scaling your Airbnb portfolio efficiently.

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