Can I use short-term rental income for a conventional loan?
Tricky. Fannie Mae and Freddie Mac generally treat short-term/Airbnb rental income as projected income that requires 2 years of personal tax returns showing the income on Schedule E. Some non-QM lenders accept Airbnb income with reduced documentation. Regular long-term rental income is easier to qualify.
Plain-English explanation
Conventional and short-term rental income don't mix smoothly. Standard conventional treats Airbnb/VRBO income like self-employment: documented over 2 years, calculated as net (after expenses) on Schedule E, averaged. Year-1 short-term rental usually doesn't count. Some lenders require the property classification to match — short-term-rental properties may need to be financed as investment property even when borrower-occupied for some weeks. Non-QM bank-statement and DSCR lenders are sometimes the right fit for STR-heavy borrowers. Subject to Fannie/Freddie guidelines and lender overlays.
What can change the answer?
Down payment, reserves, rental income calculation, multi-financed-property reserve rules, and investment LLPAs all stack to drive pricing.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Investment Property
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.