Texas has no statewide short-term rental law that overrides cities, so the rules change at every city limit. Add high property taxes and coastal windstorm insurance, and the same house can be a great STR in one town and a non-starter in the next.
In short: Our top pick for Texas short-term rental loans is LendingStreet. On some programs we qualify on projected STR revenue instead of a long-term lease, with no W-2s or tax returns. Purchases go up to 80% LTV and cash-out up to 75%, LLC borrowers are standard and 30-year terms are available. Loans start at $150,000 with no stated maximum. Get a quote with the form below.
LendingStreet is an investment property lender built for investors. Our STR DSCR loan is a business-purpose loan on non-owner-occupied property that, on some programs, qualifies on projected short-term revenue. That lets a Hill Country cottage or Gulf Coast beach house be judged on what it earns from guests.
It fits investors buying in Texas vacation markets, in city neighborhoods where STRs are licensed, and owners refinancing an operating STR.
Next step: send the address and revenue projection through the form below or call (877) 298-1001.
If you are weighing CoreVest, Dominion Financial, Lima One and Visio Lending for a short-term rental (Airbnb and VRBO) loan for investors in Texas, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| A single short-term rental | LendingStreet | We finance individual 1-8 unit short-term rentals. CoreVest states its short-term rental loans are for 5+ STR properties under one loan. |
| Short-term rental with credit in the 620s | LendingStreet | Our DSCR minimum is 620. Visio Lending's STR guide states a 680 minimum, and Lima One states 700 for its STR loans. |
| Short-term rental loan above $2.5M | LendingStreet | Our DSCR loans have no stated maximum. Lima One states STR loans up to $2.5M. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
The Gulf Coast draws beach traffic to Galveston, Port Aransas, Rockport and South Padre Island. The Hill Country pulls weekend guests to Fredericksburg, Wimberley, Dripping Springs, New Braunfels and the lakes around Canyon Lake and Lake Travis. East Texas lakes and the Big Bend region add smaller niche markets.
Each of these places sets its own rules. Galveston requires STR registration and hotel occupancy tax collection, and Fredericksburg has its own permit system. Coastal and lake towns may also have flood and windstorm requirements that change the numbers.
Revenue in Texas vacation markets is seasonal. Beach towns peak in summer and around spring break, while Hill Country towns stay busier through fall and wine season. A revenue projection should reflect the full year, based on comparable properties nearby.
Austin overhauled its rules in 2025. STRs are now an accessory use in residential zones with a valid operating license, with limits on how many units can operate on a site, and platforms collect hotel occupancy tax on operators' behalf. Read the current rules on the city's website before you buy.
Dallas adopted rules in 2023 to bar STRs in single-family zoning districts, and those rules were challenged in court, so check current enforcement with the city. San Antonio requires permits and limits how many non-owner-occupied STRs can operate on a block. Houston and other cities have their own registration rules. HOAs across the state may also prohibit rentals under 30 days.
Texas investors often weigh community banks, local hard money lenders and private individual lenders. Here is how those types compare for a long-term STR hold.
| What STR investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| Income used to qualify | Projected short-term rental revenue on some programs | Often wants lease history or tax returns showing rental income | Mostly the property value; income less central |
| Personal income documents | No W-2s or tax returns | Usually required | Usually not required |
| Term for holding the rental | 30-year terms available | Varies; often shorter or adjustable | Usually short-term only |
| Leverage | Up to 80% LTV purchase, up to 75% cash-out | Varies by bank | Varies; short-term |
| Borrowing in an LLC | LLC borrowers are standard | Varies | Usually allowed |
| Minimum credit score | 620 | Varies | Varies |
| Coastal homes needing windstorm coverage | Reviewed with the full insurance package | Varies | Varies |
This example is illustrative and not a quote. An investor buys a three-bedroom raised beach house in Galveston for $550,000. The qualifying projected short-term revenue used is $4,900 a month. With no homestead exemption, taxes are budgeted at $917 a month. Insurance, including windstorm and flood coverage, is $520.
At 75% LTV the loan is $412,500. Estimated principal and interest on a 30-year term is about $2,814, for a total payment of about $4,251. DSCR is about 1.15x. Notice how much of the payment is taxes and insurance; on the coast, those two lines decide the deal.
| Item | Monthly amount |
|---|---|
| Projected STR revenue used | $4,900 |
| Estimated principal and interest on $412,500 | $2,814 |
| Property taxes | $917 |
| Insurance with windstorm and flood | $520 |
| Total payment | $4,251 |
| DSCR | About 1.15x |
Texas has no state income tax and funds local services largely through property taxes, which are high compared with many states. Investors do not get homestead exemptions, so budget on the full rate, not the seller's bill.
Stays under 30 days are subject to the 6% state hotel occupancy tax plus local hotel taxes set by cities and some counties. Register with the state comptroller and the city, and ask which taxes listing platforms collect for you. Texas does not charge a state real estate transfer tax, which helps closing costs.
In coastal counties, standard policies often exclude wind, so many owners buy windstorm coverage separately, sometimes through the state windstorm insurance pool. Flood insurance is generally required in mapped flood zones. Inland, hail is the bigger concern. Get quotes for short-term rental use during your option period.
Raised beach houses, older roofs and homes close to the water can price very differently, so get a quote for the specific address before you set your offer.
Put the same questions to each lender. Here is how LendingStreet answers.
| Ask any STR lender | LendingStreet's answer |
|---|---|
| Can I qualify on projected nightly revenue? | Yes, on some programs, instead of a long-term lease |
| What is the maximum LTV? | Up to 80% on purchases, up to 75% on cash-out; varies by program |
| What DSCR minimum applies? | 1.0x standard; sub-1.0 programs exist |
| How long before I can take cash out? | Seasoning varies by program |
| Can my LLC be the borrower? | Yes, LLC borrowers are standard |
| How quickly can we close? | It depends on the appraisal, title and how complete your file is |
| Is there a loan size limit? | From $150,000 with no stated maximum; larger balances get more review |
Send the address, price, revenue projection or booking history, tax and insurance figures, HOA rules and proof the property can legally operate as an STR. Use the form below or call (877) 298-1001.
If a city address will not work under its current rules, ask us about nearby towns or unincorporated county areas where STRs are allowed. Many Texas investors find the numbers and the rules both work better a short drive outside the big cities.
Our top pick is LendingStreet. On some programs we qualify Texas STRs on projected revenue, with no W-2s or tax returns, up to 80% LTV on purchases and 30-year terms.
Yes. We lend across Texas, from the Gulf Coast and Hill Country to Austin, Dallas, Houston and San Antonio, and in all 50 states and DC.
There is no statewide law that overrides city rules, so each city and HOA sets its own. Check the specific address.
Under the 2025 changes, STRs are an accessory use in residential zones with a valid license and site limits. Confirm current rules with the city.
The 6% state hotel occupancy tax applies to stays under 30 days, plus local hotel taxes. Register with the state and the city.
Usually property taxes and insurance. Budget taxes at the full rate with no homestead exemption, and include windstorm and flood coverage on the coast.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program. A booking history helps support the revenue figure.
No. Our investor loans are business-purpose loans on non-owner-occupied property operated as a rental.
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