Vermont rental investing splits into two worlds: tight long-term markets around Burlington and ski-town rentals that live or die by winter. A good DSCR lender here understands both, and the quiet months in between.
In short: The best DSCR lender in Vermont is the one that fits your property type, whether that is a Burlington-area duplex or a ski condo in Stowe or Killington. Compare rate, LTV, minimum DSCR, condo project rules and how projected STR revenue is treated across Vermont's uneven seasons. LendingStreet finances investment property in Vermont with DSCR rates from 6.125%, short-term rental DSCR from 6.49% and up to 80% LTV on purchases. For ski rentals, HOA dues and the slow spring and fall months usually decide the ratio.
Vermont's local banks and credit unions lend to many investors, usually on personal income. National lenders such as Kiavi, Visio Lending, Angel Oak and LendingOne also write DSCR loans, with different rules on resort condos and rural property.
Quote the same property with each lender. Compare rate, lender and closing costs, prepayment terms, reserves and, for ski property, whether the lender will finance that specific condo project.
Our DSCR loans qualify on the property's income. Rates start at 6.125% for well-qualified borrowers and 6.49% for short-term rentals. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score.
LLC borrowers are allowed, no W-2s or tax returns are required, and 30-year fixed options are available. Sub-1.0 and no-ratio programs give room on tighter deals.
Chittenden County, including Burlington, South Burlington, Winooski, Essex and Colchester, is the state's main long-term rental market, with the University of Vermont, healthcare and a tight housing supply. Montpelier and Barre, Rutland, Brattleboro and Bennington are smaller markets with older housing and lower prices.
Ski towns drive most short-term rental activity: Stowe, Killington, Ludlow near Okemo, Warren near Sugarbush, Jay near Jay Peak, and the Stratton and Mount Snow areas in southern Vermont. Many also see fall foliage visitors and summer guests.
Vermont's rental year is uneven. Ski season and foliage are strong, summer is solid in many towns, and spring mud season is slow almost everywhere. STR DSCR loans qualify on projected annual revenue, so those weak weeks count.
Much of the housing is old, heated with oil, propane or wood, and sometimes served by private wells and septic. Vermont requires short-term rental operators to register and collect the state's rooms tax, and some towns add their own rules. Larger development projects can also fall under Act 250, the state land use law.
This example is illustrative and not a quote. An investor buys a condo near a northern Vermont ski area for $500,000 to run as a short-term rental. A rental projection shows $55,200 a year, or $4,600 a month on average, with most of it earned from December through March. Taxes, insurance and HOA dues total $1,150 a month.
At 75% LTV the loan is $375,000. At a sample rate of 7.25% on 30-year amortization, principal and interest is about $2,558. The total payment is about $3,708 and DSCR is about 1.24x. Taxes, insurance and HOA dues add up to about 45% of the principal and interest, which is common for ski condos.
| Item | Amount |
|---|---|
| Purchase price | $500,000 |
| Loan at 75% LTV | $375,000 |
| Principal and interest (7.25%, 30 years) | About $2,558 |
| Taxes, insurance and HOA | $1,150 |
| Total monthly payment | About $3,708 |
| Projected revenue ($55,200 a year) | $4,600 a month |
| DSCR | About 1.24x |
In Chittenden County, demand for year-round rentals is strong and vacancy is usually low, but prices are high for Vermont. Many deals are older duplexes and small multifamily buildings, often near the UVM campus.
Burlington has its own rental housing rules, including registration and inspections. Confirm the legal unit count and any open code issues before you buy, since those affect both the appraisal and your rental income.
Gather the leases or a rental projection, condo documents and budget, an insurance quote, heating and septic details for rural homes, LLC documents and two months of bank statements. For a short-term rental, include booking history if the unit has been rented before.
Send the numbers before you sign. The financing team will review the scenario and come back with 2-3 options.
Yes. LendingStreet finances investment property in Vermont, including Burlington, Montpelier, Rutland and ski towns such as Stowe and Killington. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
Often, yes, if the project passes condo review and allows nightly rentals. Condo-hotel units with a rental pool or front desk are usually ineligible.
The revenue projection covers the full year, so slow spring weeks pull the monthly average down. A unit that only works in February may not clear 1.0x.
Vermont requires short-term rental operators to register and collect the rooms tax, and some towns have their own rules. Confirm current requirements with the state and the town.
No. The loan qualifies on the property's rent or projected revenue. You need a 620 or higher credit score and reserves.
Yes. Two- to four-unit properties qualify on the combined rent. Confirm the legal unit count with the city before you buy.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.