Finimpact

Best Airbnb Loans

Airbnb property owners may need a business loan to renovate or update an existing space or purchase a new building. Some of these challenges involved with obtaining a business loan for Airbnbs include meeting the often strict traditional lender requirements set forth.

Airbnb Loans
Allison Bethell
Written by:Allison Bethell
Real Estate Expert

Airbnb owners need to keep up with maintenance and expenses once they purchase the property. They will also be responsible for cleaning costs between guests. An Airbnb business loan can go towards purchasing a vacation rental property, renovating an existing property, or be used for ongoing property-related expenses. This article will help guide you through the Airbnb loan process and explain what to look for in a lender.

Our Top Picks for Airbnb Loans

biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
credibly
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Credit Score
Min. Credit Score 500+
Loan Amount
Loan Amount $5K-$400K
Loan Repayment
Loan Repayment 6-18 months
Fundbox review
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K - $150K
repayment
Loan Repayment 6-12 months

How to Choose the Best Small Business Loan for Airbnb

When choosing the best small business loan for an Airbnb, there are some important factors to consider so you’re not overpaying and so you know exactly what you’re getting yourself into. After years of experience, and hours of research, our experts use the following factors to rank the best Airbnb lenders:

  • Loan Features: Know the loan terms, repayment optionality, and available loan amounts. If you need an Airbnb loan for $1 million and the maximum loan amount is less, then you need to look elsewhere.
  • Application process - What’s the application process like? How invasive and time-consuming is it? Will it affect your credit score or is just a soft credit pull? Does the lender have any distinctive competitive offerings? How long does the application process take and how long until funding?
  • Interest rates and fees - Consider fees like origination fees, appraisal fees, notary fees, and be aware of all other lender fees. What will the rates be for an Airbnb loan? These may be higher than rates for a primary residence.
  • Qualification process - Be aware of what you will need to present to qualify for a loan. Typically, there is a minimum credit score requirement, as well as proof of income, and the lender may want to see tax returns and/or bank statements from the last couple years. Know if the lender requires a certain time in business or experience in the Airbnb market before applying.
  • Customer support - How accessible is customer support? Do they have live representatives and do they offer weekend and evening hours? Is there multi-channel support? Know what supplemental information and tools are available and if there are any specific resources on Airbnbs and vacation rental properties that would be beneficial.
  • Online user reviews - Check out reviews on independent review sites like Trustpilot and see what the reviewers like and don’t like. If there are too many negative reviews, you may want to check out a different lender.
  • Perks and Bonuses - What does the lender offer its borrowers? Consider specified service offerings like payment flexibility, advertising transparency, affiliate discounts, and advanced technology. Payment flexibility may be important during off seasons when your property is vacant or slower than usual.

Best Small Business Loans for Airbnb - Full Overview

1. Biz2Credit - Best for Interest Only Loans

Biz2Credit offers term loans and working capital loans with fast funding times. You can use these loans to pay for cleaning, repair, and maintenance on your Airbnb. Applying for the loan won’t affect your credit. You can also opt for a real estate loan, if you want to purchase a new property and use it as a Airbnb.

Pros
Interest only: Options offered on some loans
Application: Simple, fast, and no app fee
Variety: Multiple loans and lenders
Cons
Specifics: Loan details lacking on website
Fees: Origination and additional fees
Strict criteria: Credit score and more


Biz2Credit offers term loans with quick turnaround times, often as fast as 72 hours from approval to funding. Some of its Airbnb loans offer interest only options. This makes your payments more manageable especially during a slow season, or if you have excessive repair or cleaning bills that month. In order to qualify for a loan, you need a credit score of at least 575, at least six months in business, and $250,000 in revenue. Loan amounts generally range from $25,000 to $6 million. Interest rates start at 7.99% and go up from there depending on market rates, property type, and borrower qualification.

The Bottom Line

Biz2Credit is a good option if you want an Airbnb loan with some flexibility because some loans allow you to make interest only payments. It’s also good if you’re new to the Airbnb scene because you only need to be in business for six months. Loan amounts provide a nice range from small sums that would help with plumbing repairs to large amounts that could help you purchase a quadruplex.

2. Credibly - Best for Low Credit Score Borrowers

Credibly is a direct lender and a loan marketplace. It has a plethora of Airbnb loans to choose from all on one site. Credibly’s loan eligibility requirements are on the more lenient side when compared to other lenders. There are short-term loans that can be used for repairs and furnishing your Airbnb and long-term loans which can assist in remodeling or purchasing a new property to use as an Airbnb.

Pros
Low credit score requirement: 500+
High funding limit: $5 million
Loan options: Choose the one that fits
Cons
Rates: Higher than some other lenders
Fees: Origination fees charged
Payment schedules: Daily or weekly


Loan terms, rates, and criteria do vary by lender and the type of loan. However, you typically need to have a minimum credit score of 500, at least three years of business history, and $180,000 or more in business revenue. Long-term loans offer higher loan amounts that go up to $5 million. Rates typically start at 9.99%. The lender offers different loans for different industries and even works with riskier industries including real estate companies.

The Bottom Line

Credibly is a good option for Airbnb funding if your credit score is on the lower side. It also offers seven different types of loans from a variety of lenders. It’s ideal if you want to be able to compare loans on one site and if you want to get a larger loan to assist with the purchase of an Airbnb.

3.Fundbox - Best for Fast Funding

Fundbox offers lines of credit and term loans that can be used as Airbnb loans. They specialize in fast funding and a transparent lending process. When you fill out an online application, a soft pull is done, which doesn’t negatively affect your credit score. The application typically takes about five minutes and as soon as six minutes later, you will have an answer if your Airbnb loan was approved or not. If approved, Fundbox asks you to link your business checking account so it can transfer the funds there. It also will automatically debit your account for predetermined payment amounts.

Pros
Pay back options: 24 or 52 weeks
Fast funding: Into your account within days
Helpful site: Clear explanation of loans
Cons
Low loan amounts: $150,000 or less
Higher interest rates: Starting at 10.1%
Credit score: Generally need a 600+


With Fundbox, you can choose a term loan or a line of credit, depending on which better works for you. Consider whether you would rather have one lump sum or access to a revolving line of credit. Rates vary but typically start at 10.1% and go up from there. Minimum credit score requirements are usually at least 600 and loans go up to $150,000. You need to have six months or more of time in business and at least $100,000 in business revenue to qualify for most loans.

The Bottom Line

Fundbox is a solid option if you’re looking for a loan to fund part of your Airbnb business. You can get the loan quickly so you can fix the emergency leak before your next guest arrives or you can quickly furnish your studio and put it on the market before peak rental season starts.

4. Fora Financial - Best for Hassle Free Application

Fora Financial is a working capital provider that offers loans to small businesses. This lender has been around since 2008 and has delivered over $2 billion in loans to 25,000 small businesses. When working with Fora Financial, you have the option to fund your Airbnb with a small business loan or merchant cash advance.

Pros
Loan limits: Good range of low and high
Qualifications: Not just credit score based
Application: Quick and easy
Cons
Rates: Higher than some other lenders
Fees: Origination and late fees
Website: Could be more informative


For Financial offers borrowers a hassle-free application process. The application itself can be completed online, requires minimal documentation, and is only one page long. The application process won’t affect your credit score because it’s only a soft pull. Funding can be as quick as 72 hours after an approval. Credit score requirements vary, and business loans can be used for any business including Airbnbs. Loan amounts range from $5,000 to $750,000 and don’t have any use restrictions. Loan terms are offered for up to 15 months. No collateral is required and discounts are offered if you pay off the loan early.

The Bottom Line

Fora Financial is a good option to consider when looking for an Airbnb loan because of its simple, non-invasive application process. It also offers a large range of loan amounts and your approval isn’t solely based on your credit score.

5. BlueVine - Best for Competitive Interest Rates

BlueVine offers Airbnb business loans in the form of a line of credit. This gives Airbnb hosts the flexibility of using funds when they need it and only repaying what they use. This can be helpful if an unexpected repair comes up or there are more vacancies than usual during the year. The BlueVine application process and finding times are quick, you may receive an approval as soon as five minutes after finishing the online application.

Pros
Low rates: 4.8%+ for qualified borrowers
Fast approvals: As quick as five minutes
Flexibility: Only pay for what you use
Cons
Not many options: Only one loan type
Lender requirements: Can be strict
Low loan limits: Only up to $250,000


All loans offered by BlueVine are lines of credit. Rates start at 4.8% for well-qualified borrowers. Loan limits typically range from $6,000 to $250,000 which is a good amount to use to renovate the property or to fix a last minute repair that pops up. Loan terms are typically either six or twelve months. You pay back each draw with fixed weekly or monthly payments. You have access to a revolving line of credit which is similar to a credit card. Once you pay down your balance, the funds replenish themselves and you have access to them again.

The Bottom Line

BlueVine is a good option if you already own real estate and want to turn it into an Airbnb or if you just need to make some repairs or use the loan for ongoing maintenance. The line of credit gives you more flexibility than a typical loan structure.

Best Airbnb Loans - Features Comparisons

Check out the table below for a quick summary and comparison of lenders and their borrower requirements.

Company
Min. Credit Score Min. Time in Business Min. Annual Revenue Loan Amount Interest Rate
Biz2Credit
575 6 months $250,000 $25,000 - $6 million 7.99%+
Credibly 500 3 years $180,000 Up to $5 million 9.99%+
Fundbox 600 6 months $100,000 Up to $150,000 10.1%+
Fora Financial Not disclosed 6 months $144,000 $5,000 - $750,000 Varies
BlueVine 600 6 months $120,000 $6,000 - $250,000 4.8%+

How to Use Airbnb Business loans?

Airbnb business loans can be used in so many different ways that you may not have even considered. Below, we highlight some ways that our experts suggest using these loans:

  • Fix up an existing property: Make it Airbnb ready with furniture, kitchen gadgets, linens, new appliances, and bathroom basics.
  • Furnish and accessorize: Buy furniture, home decor, and art work to spruce up your space.
  • Turn empty space into an Airbnb rental: Fix up that neglected empty bedroom, that studio, or mother-in-law suite, and start making rental income from spaces you already have.
  • Sub-lease your space: Rent out your space when you’re out of town and use the Airbnb business loan to paint, do any repairs, clean, and maintain the space. Make sure you get the landlord’s permission first.
  • Use the loan to landscape: Add grass or pavers, build a sun deck, add a fire pit, or have a hot tub installed to give potential guests the amenities they’re looking for. Airbnbs that offer amenities typically rent more often and for higher prices than those without amenities.
  • Purchase a new property:This new place is solely intended to use as an Airbnb rental. In this case, the loan will cover the majority of the cost of the property. This property could be any type of dwelling that permits Airbnb rentals, such as a condo, townhome, single family house, or a multi family building. You may purchase a property in an area that is popular for Airbnbs so you get the best return on your investment.

What To Consider Before Buying An Airbnb Property

Airbnb rentals have become globally popular, with tourists preferring them over hotels. Still, your success isn’t guaranteed. Here are a few things to consider before purchasing:

  • Reputation: Airbnb’s success relies heavily on host involvement with guests. Online reviews can make or break your Airbnb business.
  • Maintenance: Will you be able to handle the constant cleaning and maintenance of your property? Or do you have the resources to hire a property manager?
  • Location: You might find a beautiful property, but if it’s not in the right location, you won’t have many bookings. Before purchasing an Airbnb property, do your homework. Check for amenities for tourists such as restaurants, entertainment, public transportation, and more.
  • Legality & Taxes: Due to the popularity of Airbnb and pressure from the hotel industry, some cities have created burdensome regulations for short-term rental properties. Check with the municipality to learn about regulations, licensing, and tax requirements before investing in the property.
  • Airbnb Rental Income: Airbnb income can vary from month to month. According to research, the average Airbnb host earns around $924 a month. Keep in mind that you will more likely earn a larger income in peak seasons than during the off-season. You will need to make provision for mortgage payments, maintenance fees, and other expenses during the off-seasons.
  • Airbnb Occupancy: The number of nights your Airbnb is booked vs. the number of days available will give you an occupancy rate. A good rate depends on the real estate market, the time of year, and your listing position in the Airbnb market. The occupancy rate helps determine how successful your Airbnb will be.
  • Capitalization Rate: The CAP rate is a metric used to measure investment return on your rental property. You can calculate this rate by dividing your Airbnb's net operating income by the current market value.
  • FICO Score: This score will help lenders determine how likely you are to pay back a loan. A good FICO score is 670 and up. If your score is lower, don't let it deter you from investing in Airbnb since many lenders will still assist you even with a 500 credit score.

Conclusion

Airbnb is a popular vacation trend that doesn’t seem to be going away anytime soon. In order to capitalize on this growing market, you may need to obtain an Airbnb loan to help cover some of the associated costs. These loans can be used to help you remodel and furnish existing properties or purchase real estate to use as Airbnb rentals. Keep your budget in mind, think about location, accessibility, and how easy it will be to manage the property. And then when you choose a lender, keep in mind their rates, terms, fees, and qualifications to make sure you’re getting the loan that best fits you and your needs.

Frequently Asked Questions (FAQ)

Can Airbnb pay a mortgage?
Airbnb can definitely pay for your mortgage. The amount of rental income you receive from your Airbnb will depend on the area your property is located in, nearby attractions, on-site amenities, and how frequently the property is rented. If you need Airbnb to cover your mortgage, research the area first, its average occupancy rates, and what most travelers want in a property. Also, remember to keep in mind that you will need to pay taxes and cleaning fees, among other home ownership costs.
How do I get funding to start Airbnb?
You can obtain funding to start an Airbnb from money you have saved, from friends or family, or from a loan, which is the most popular option. You can get a loan from a bank or credit union, or use an online lender. You may choose a collateral loan such as a mortgage, a personal loan, or a business loan.
Does Airbnb Count as a Small Business?
Since you are actively managing the rental and offering a service in exchange for money, you are technically running a self-employed business. You can also set up an LLC, which is recommended to help keep your personal and business assets separate.
Can you Get a Business Loan for Airbnb?
Yes, there are many loans available to supplement your Airbnb including, line of credit, SBA loans, merchant cash advance, and general small business loans.
Can you get an SBA loan for a rental property?
Yes, an SBA is an attractive loan for many real estate investors since it generally has lower interest rates than other loans, and you have an extended time to pay them off.

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