Northern Virginia’s short-term rental market has surged in recent years. With Arlington’s urban appeal and Alexandria’s historic charm, investors are seeing strong occupancy rates for Airbnb and vacation rental properties. However, traditional financing often makes acquiring these properties complicated. DSCR loans offer a solution tailored for cash-flow-driven investors.
How DSCR Loans Work for Short-Term Rentals
Rather than relying on personal income verification, a DSCR loan evaluates the property’s rental income versus mortgage obligations. For short-term rentals, lenders typically use projected rental income based on market comparables, historical performance, or professional management data.
This makes DSCR loans ideal for investors who:
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Want to finance vacation homes or short-term rental units
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Prefer a streamlined approval process
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Plan to scale multiple properties in high-demand areas
Local Market Advantage
Arlington and Alexandria have strong tourism, corporate travel, and transient populations. This creates reliable rental income streams. Investors can leverage DSCR loans to acquire properties in prime neighborhoods without extensive documentation, even if their personal income is complex or variable.
Example Strategy
An investor purchases a townhouse near Old Town Alexandria for $650,000. The projected monthly short-term rental income is $4,500, with a mortgage payment of $3,300. That results in a DSCR of 1.36, qualifying the property for DSCR financing.
This approach allows investors to grow short-term rental portfolios quickly and confidently, without being limited by conventional mortgage rules.
Partnering for Success
Choosing a lender experienced in low documentation investment property loans is crucial. Working with experts ensures accurate rental income evaluation, timely closings, and strategic guidance for portfolio expansion.
Learn more at LowDocLender.com.
🗓️ Schedule a Consultation or call 919-451-6089
NMLS ID 75606 | New American Funding | Equal Housing Lender
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Northern Virginia Regional Commission — Reports & resources on economic and housing data for Northern Virginia. novadashboard
https://www.novaregiondashboard.com/reports -
Virginia Housing Commission — Housing market updates including starts, affordability, and housing supply in Virginia. vhc.virginia.gov
https://vhc.virginia.gov/VHC%20Spring%202025%20Newsletter.pdf -
Joint Legislative Audit & Review Commission (JLARC) — Analysis of affordable housing needs in Northern Virginia and the state of Virginia. JLARC
https://jlarc.virginia.gov/landing-2021-affordable-housing-in-virginia.asp -
Long & Foster Real Estate – Northern Virginia Housing Market Data (subscription/market‑snapshot) that includes inventory, days on market, etc. marketminute.longandfoster.com
https://marketminute.longandfoster.com/market-minute/va/northern-virginia.htm -
Alexandria Living Magazine — Article on Northern Virginia housing market trends, including specific data for Alexandria & Fairfax. Alexandria Living Magazine
https://alexandrialivingmagazine.com/home-and-garden/northern-virginia-outpaces-national-housing-market/
