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DSCR Loans on Mixed-Use STR Properties: What Qualifies

A mixed-use property — residential units over a storefront, say — can qualify for a DSCR loan when the residential portion dominates and the commercial use is limited. Lenders set a residential-percentage threshold and review the commercial tenancy; within those bounds, the residential STR income underwrites much like any other.

What “mixed-use” means for a DSCR loan

A mixed-use property combines residential units with a commercial component — classically apartments over a storefront. Some DSCR lenders fund these when the residential portion dominates; others treat any commercial space as commercial lending. The line is the residential percentage.

The residential-percentage test

Most lenders that allow mixed-use want the residential square footage and income to be a clear majority (commonly well over half) and the commercial tenancy to be benign — a quiet retail or office use, not a nuisance use. Outside those bounds you’re into commercial lending, not residential DSCR, with different terms and LTV.

A worked example

Blend the income: the residential units carry STR (or long-term) revenue, and the commercial space carries its lease. The lender underwrites the combined DSCR against PITIA. A strong residential majority with a stable commercial tenant can clear a floor that a commercial-heavy building won’t.

What disqualifies a deal

Too much commercial square footage, a problematic commercial use, or zoning that doesn’t permit the residential STR all push the deal out of residential-DSCR territory. Confirm zoning and the STR legality for the residential portion before underwriting — run the address to check both.

Frequently asked questions

Can I get a DSCR loan on an Airbnb with no rental history?
Yes. 9 of the 10 STR lenders we track qualify the loan on a market revenue projection (AirDNA/Rabbu) or an appraiser’s Form 1007 short-term-rent schedule, so no operating history is required for many programs.
What down payment and LTV do STR DSCR loans require?
Most STR DSCR programs want 25–30% down (70–75% LTV) — slightly more than a long-term-rental DSCR loan, reflecting the variability of nightly income. A stronger cap-adjusted DSCR and credit band can unlock the higher-LTV tier.
What DSCR do STR lenders require?
Most set a floor around 1.0 on the cap-adjusted DSCR (revenue ÷ PITIA). Some offer no-ratio or sub-1.0 STR programs at a premium for thinner deals. The engine shows your ratio against each lender’s specific floor.
Are you a lender or a broker?
Neither. NightYield is a marketing and lead-referral service. We don’t originate, quote, or negotiate loans — we compute the feasibility truth and, if you ask, connect you with STR lenders who fund Airbnb income.
How current is this information?
Revenue and rate figures render from the data layer with an “as of” date; STR legality is re-checked on a monthly minimum and on ordinance events, because stale legality is worse than none. Every status shows when it was last checked and a source to verify.

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