Can you get a mortgage for an Airbnb or short-term rental in New Hampshire?

Can short-term rental income help me qualify?

Yes, for some loans. Fannie Mae's Selling Guide lets lenders count short-term rental income on a one-unit investment property, as long as:

• The property is legally allowed to operate as a short-term rental, including any local registration and licensing
• The income doesn't come from an accessory dwelling unit (ADU)
• The lender documents your current housing payment

How does Fannie Mae count short-term rental income?

For a purchase, the lender uses either the appraiser's long-term market rent (Form 1007) or validated short-term rental data from an MLS or property management company: three comparable rentals, with their rates and the days they were rented last calendar year. The lender counts 50% of the gross rent, with the other half covering vacancy and upkeep, then subtracts the property's full payment.

For a refinance, the lender uses your latest tax return. If the property is on Schedule E, it averages the cash flow over 12 months; if not, it uses the same 50% method.

If the result is positive, it can offset the property's own payment only. If it's negative, it counts as a monthly debt.

What about DSCR loans for short-term rentals?

Some DSCR lenders accept short-term rental income, usually documented by booking history or market data. Each lender sets its own rules, so Tom compares them for the property. See DSCR loans for how they work.

Is it a second home or an investment property?

If you'll use the place yourself and rent it out some of the time, it may be financed as a second home, which has its own rules on renting and use. If it's mainly a rental, it's an investment property. Tell your lender honestly how you plan to use it. Lake homes and second homes covers the second home side.

What does New Hampshire require of short-term rental hosts?

New Hampshire taxes short-term rentals, defined as renting rooms in a residential unit to tourists or transient guests for less than 185 consecutive days, under its meals and rooms tax. Hosts need a meals and rooms license from the NH Department of Revenue Administration, and every ad or online listing for a short-term rental must show the operator's license number. Some booking platforms collect the tax for hosts, so check with the DRA how it applies to you.

Are short-term rentals allowed in my town?

Towns set their own zoning, and some limit short-term rentals or require a permit. The state license rule doesn't change local zoning. Condo associations and HOAs can also restrict rentals, and a condo project with many short-term units can be harder to finance (see condo financing). Check with the town's zoning office and read the association documents before you make an offer.

What should I do before making an offer?

• Confirm the town's zoning and any association rules
• Get rental comparables or a property manager's estimate
• Check the town's tax rate on its town page
• Ask Tom which loan counts the income best for your plans