Airbnb to Rental with a DSCR Loan in Augusta Now

The Strategic Pivot: How to Convert Your Airbnb to a Permanent Rental with a DSCR Loan

AUGUSTA, GEORGIA – AUGUST 10, 2025 – AIRBNB DSCR LOAN: Your investment property has served its time as a high-performing Airbnb. Now, whether due to market shifts, new regulations, or a desire for a more stable, hands-off income stream, you’re ready to make a strategic pivot to a long-term rental. The problem? Traditional banks won’t lend on a property without a tenant and a signed lease. 😩

This is a problem of process, not potential. The good news is, there’s a financing tool designed for this exact scenario: the DSCR loan. It’s the key to smoothly converting your Airbnb into a permanent rental, allowing you to access equity without the headaches of traditional paperwork.

Convert Your Airbnb to a Permanent Rental with a DSCR Loan:

DSCR Loans: The Investor’s Solution to a Common Problem

A DSCR (Debt Service Coverage Ratio) loan is a modern financing tool that sidesteps the limitations of traditional lending. Instead of scrutinizing your personal income, it focuses on the property’s ability to generate income. This is a game-changer for investors who are self-employed or whose tax returns don’t reflect their true cash flow.

So, how does a lender qualify a property that’s transitioning from an Airbnb to a long-term rental?

It’s simple. The lender orders a professional market rent analysis. This is a third-party appraisal that determines a realistic, long-term rental value for your property based on comparable listings in the area. This allows you to secure financing and a cash-out refinance before you even find a permanent tenant. The loan is qualified by the asset itself, not your personal W-2. 🔑

The DSCR is calculated by this simple formula:

DSCR=fracGrossR˜entalI˜ncomeTotalD˜ebtS˜ervice(˜​PITI)

A DSCR of 1.25 or higher is generally preferred, as it shows that the property’s income is at least 25% more than its mortgage payments.

The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

Page 2 of 5

How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

Page 3 of 5

What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

Page 5 of 5

Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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Current Requirements and Rates (as of August 2025)

Here’s what you need to know about DSCR loans for converting your property:

• Interest Rates: As of today, DSCR loan rates typically fall within the range of 7.5% to 9.0%. These rates are slightly higher than conventional loans because they are non-qualified mortgages, but the flexibility and speed are well worth it for the right investor.
• Loan-to-Value (LTV): Most DSCR cash-out refinance programs allow a maximum LTV of up to 80%. This means you can pull out a significant portion of your built-up equity.
• Credit Score: While no personal income is a factor, your credit history is. A credit score of 680 or higher is generally required to secure favorable terms, with the best rates reserved for scores of 720+.
• No Personal Income Check: This is the key benefit. You can refinance and access capital without providing a W-2, personal tax returns, or employment verification. The loan is qualified by the asset itself.
• Entity Requirements: These loans are typically made to a business entity like an LLC, which is a recommended best practice for real estate investors.

Ultimate Rental Property Loan Quiz

Navigating the world of real estate investment can be complex, especially when it comes to financing. Securing a loan for a rental property is a critical step for any aspiring landlord. This quiz is designed to test your knowledge on this important topic and help you understand the key factors involved in the process.

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Page 1 of 5

For a first-time real estate investor, what is a common hurdle when trying to secure financing? A) Lenders offer lower interest rates for a first loan for a rental property. B) There are no documentation requirements for a first loan for a rental property. C) A higher down payment is often required for a loan for a rental property. D) The approval process for a loan for a rental property is typically faster for new investors.

Page 2 of 5

Which factor is most heavily scrutinized by lenders when evaluating a borrower's application for investment property financing? A) The borrower's debt-to-income (DTI) ratio before the new loan for a rental property. B) The number of rooms in the property being considered for the loan for a rental property. C) The color of the property when applying for the loan for a rental property. D) The borrower's political affiliation when seeking a loan for a rental property.

Page 3 of 5

What is a significant benefit of using a cash-out refinance on your primary residence to purchase an investment property? A) It provides the funds for a down payment, but you'll still need a separate loan for a rental property for the remaining balance. B) Using a cash-out refinance means you can avoid the appraisal process that is standard with a loan for a rental property. C) The interest rate on a cash-out refinance is always higher than the rate for a traditional loan for a rental property. D) A cash-out refinance has no closing costs, unlike a standard loan for a rental property.

Page 4 of 5

What is the main purpose of getting a pre-approval letter from a lender before you start looking for investment properties? A) A pre-approval letter is a binding contract that forces the bank to give you a loan for a rental property. B) Getting pre-approved demonstrates to sellers that you are a serious buyer who is financially qualified to obtain a loan for a rental property. C) A pre-approval letter locks in your interest rate for a loan for a rental property for one year. D) You are required by law to have a pre-approval letter before you can make an offer on any home that needs a loan for a rental property.

Page 5 of 5

For an investor planning to buy, renovate, and quickly sell a property (a "fix and flip"), what type of financing is most suitable? A) A 30-year fixed-rate mortgage is the best loan for a rental property in this scenario. B) A short-term bridge or hard money loan, as this type of loan for a rental property is designed for quick turnarounds. C) A reverse mortgage is the standard type of loan for a rental property used by flippers. D) A government-backed FHA loan for a rental property is ideal for short-term investment projects.

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Augusta, Georgia: A Prime Market for Your Portfolio Pivot

Augusta, Georgia, offers a compelling backdrop for a strategic conversion from a short-term to a long-term rental. The city’s stable, diversified economy and growing population make it an ideal market for long-term rentals. Key economic drivers include:

• Healthcare: With major institutions like Augusta University and the Augusta University Medical Center, the city draws a steady stream of medical professionals and students who are excellent long-term tenants.
• Military & Technology: The U.S. Army Cyber Center of Excellence at Fort Gordon has solidified Augusta as a hub for cybersecurity, bringing in a consistent demand for housing from military personnel and high-tech professionals.

Imagine you have a successful Airbnb in the historic Summerville neighborhood (zip code 30904). You can use a DSCR loan to refinance, pull out equity, and then secure a long-term lease with a medical professional working nearby. Or, perhaps your Airbnb is in a more affordable area like South Augusta. This strategy allows you to convert it into a stable, cash-flowing asset for families, providing a reliable income stream without the stress of constant bookings and turnovers.

For investors operating in this market, these high-quality external resources are essential:

• Georgia Real Estate Commission & Appraisers Board: Stay updated on state-level regulations. https://georgia.gov/organization/georgia-real-estate-commission-appraisers-board
• Georgia Real Estate Investors Association (GaREIA): Connect with local investors and access market education. https://gareia.com/
• Augusta-Richmond County Board of Assessors: Research property values and public records. https://augustarichmondtaxassessor.com/

Quiz on Georgia Rental Property Laws

This quiz will test your knowledge of key laws and regulations for managing a Georgia rental property. Understanding these rules is crucial for protecting your investment and maintaining a positive landlord-tenant relationship.

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Page 1 of 5

What is the legal requirement for a landlord in Georgia to provide a tenant with notice of entry for a Georgia rental property? A) Landlords must provide at least 24 hours' written notice before entering the property for any reason. B) Landlords must provide at least 48 hours' notice for a Georgia rental property before entry, except in cases of emergency. C) Landlords are not legally required to provide any specific notice before entering. D) Landlords must provide a week's notice to the tenant for a non-emergency entry.

Page 2 of 5

How must a landlord handle a security deposit for a Georgia rental property? A) The landlord must place the security deposit in an escrow account, and it must be held in a state-licensed financial institution. B) The landlord can hold the security deposit in a separate bank account, but it does not need to be an escrow account. This is a common and legal practice for a Georgia rental property. C) The landlord can mix the security deposit with their personal funds. D) The landlord must immediately use the deposit to cover the first month's rent.

Page 3 of 5

What is a landlord's legal responsibility regarding a Georgia rental property and mold? A) Landlords must immediately remediate all mold found on the property, regardless of the cause. B) Landlords have no legal responsibility for mold, as it is considered the tenant's problem. C) There is no statewide law on mold for a Georgia rental property, but landlords are generally expected to maintain the property to prevent conditions that lead to its growth. D) Landlords must provide a written disclosure about potential mold issues before the tenant signs the lease.

Page 4 of 5

What is the legal process for evicting a tenant from a Georgia rental property? A) The landlord must provide an immediate notice to the tenant to vacate. B) The landlord must file a "dispossessory affidavit" in court after providing the tenant with a demand for possession, which is the official legal procedure for a Georgia rental property. C) The landlord can change the locks and remove the tenant's belongings without a court order. D) The landlord must give the tenant 30 days' notice before taking any legal action.

Page 5 of 5

Which of the following describes the landlord's duty to maintain a Georgia rental property? A) The landlord's duty is limited to ensuring the property is structurally sound. B) The landlord is responsible for maintaining the property to be "fit for human habitation" and in compliance with all housing codes, a key legal obligation for a Georgia rental property. C) The landlord is not responsible for any repairs, which are the tenant's responsibility. D) The landlord's only duty is to ensure the tenant has access to water and electricity.

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GHC Funding: Your Go-To Partner for Strategic Refinancing

At GHC Funding, we don’t just see a property; we see the potential behind the asset. Our expertise in specialized financing, particularly DSCR loans, makes us uniquely positioned to serve real estate investors like you.

Why choose GHC Funding for your conversion?

• We Understand the Strategy: We know exactly what you’re trying to accomplish and have a streamlined process designed for this specific scenario.
• Flexible Underwriting: We focus on the property’s potential, not your personal tax returns.
• Holistic Financial Solutions: Our expertise goes beyond DSCR loans. We offer a full suite of financing options for investors, including Bridge Loans, SBA 7a and 504 Loans, and Alternative Real Estate Financing. This ensures we can support your portfolio at every stage of its growth.

Your Questions, Answered 🙋‍♂️

Take the Next Step

Ready to make a strategic pivot from short-term to long-term? Don’t let traditional financing barriers hold you back. Your equity is a powerful tool, and with a DSCR loan, you can unlock it and continue to build a thriving, diversified portfolio.

Visit www.ghcfunding.com or call us today at 833-572-4327 to discuss how a DSCR loan can help you achieve your investment goals in Augusta and beyond.

Ready to make a strategic pivot from short-term to long-term?

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

At GHC Funding, we are commercial finance specialists who guide real estate investors and business owners through the world of alternative lending. Our primary focus is on securing the right capital for your specific goals, whether that's a cash-flow-based DSCR loan for your rental portfolio, an SBA loan to grow your company, or a bridge loan to close a deal quickly and efficiently.

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