The Quick Read: Yes, when the program allows short-term rental income on the subject property. A DSCR cash-out qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, not on your traditional personal-income documentation. Across Lendmire’s wholesale network, STR cash-outs typically top out around 70% LTV, with a 640+ credit score and about 12 months of hosting history expected on most files. The catch is how the lender counts the income, and that varies by program.
Why Airbnb Income Can Work for a Cash-Out
Short-term rentals are not a separate loan category in the DSCR world. They are a property use that some programs accept and others don’t. Lendmire is a broker arranging financing through select lenders in its wholesale network, across 41 markets including Washington, D.C., and that vantage point shows the split clearly. Some lenders price an STR like any other rental. Others bar STR income on the subject property and only look at a long-term rent figure.
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As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Property value, balance, taxes, and insurance are editable estimates. Maximum loan-to-value varies by lender, program, property type, and seasoning. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
A refinance is the easier moment to use Airbnb income, because the property can have real booking history. A purchase often relies on a projection. A property you have hosted for a year can show actual payouts.
The loan is business-purpose. DSCR loans are designed for non-owner-occupied investment properties, and they are reviewed differently from a standard owner-occupied mortgage. If you want the full framework, Lendmire’s complete DSCR loans guide covers it from the beginning.
What the Numbers Look Like on STR Cash-Outs
Here are the typical ranges across the network. They are guidance, not guarantees, and every file is reviewed individually.
| Factor | STR Cash-Out | Standard Rental Cash-Out |
|---|---|---|
| Max LTV | Up to 70% | Around 75% |
| Credit score | 640+ | Often around 660 |
| Coverage floor | 1.00 | 1.00 where programs start |
| Hosting history | About 12 months | Lease or rent schedule |
For a standard long-term rental, cash-out tops out around 75% LTV across most of the network. For short-term-rental collateral specifically, the ceiling drops to 70%. That five-point gap is the price of income that moves with the calendar. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Loan sizes run up to $3,000,000 on standard programs. Reserves vary by lender, leverage, loan size, and transaction type, commonly around six months of PITIA, and larger balances step up. Seasoning of about six months is a common expectation. Review details are subject to lender guidelines and property review.
A 1.00 coverage ratio is where many select programs start, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Don’t plan around the lower path unless the numbers truly force it.
How Lenders Count the Income
Three methods recur, and which one applies decides the outcome.
Trailing twelve months of actual hosting history. The lender reads your platform payout reports or bank statements and averages them. This is the cleanest path on a refinance, because the history exists.
A third-party market projection. This is mainly for properties with thin or no history. Some programs apply a haircut to it, so the income that counts is lower than the headline number.
A long-term market rent schedule. Some programs only accept this. The appraiser produces it on Form 1007, and the property gets underwritten as though it were a standard rental.
That last method is where strong Airbnb properties get shortchanged. If a program only runs a rent schedule, the property is judged at long-term-rent levels, which can lower coverage and loan size. Picking a program that reads actual booking history can change both approval and proceeds.
The Appraisal Does Not Credit Your Airbnb Business
Here’s a point most owners miss. The appraiser values the real estate. The appraisal does not give you credit for the hosting business.
McKissock explains that Form 1007 estimates monthly market rent for one-unit properties, while Form 1004 values the property and is not used to document rental income. It also makes clear that the lender decides how income from all sources, including short-term rentals, is counted.
Fannie Mae’s appraiser update adds a useful contrast. It says the 1007 was not designed for short-term rentals and that appraisers should use monthly-lease comparables rather than multiplying a nightly rate by 30. DSCR loans are not agency products, so this is context for the form, not a rule for your loan.
The practical takeaway: ask the lender how the income gets determined before the appraisal is ordered, not after.
The Mechanics, Step by Step
1. Pick the income method. Match your property’s history to a program that accepts it.
2. Gather documents. Platform payout or host dashboard reports, bank statements, the listing, and entity documents if an LLC holds title.
3. Order the appraisal. It sets value. The lender decides the income treatment.
4. Calculate coverage. Rental income divided by the full housing payment: principal, interest, taxes, insurance, and any HOA dues.
5. Size the cash-out. The new loan is capped at the program’s cash-out LTV. Proceeds are the new loan minus the payoff and costs.
6. Clear the refinance checks. Seasoning, payoff, reserves, and entity paperwork.
Run a quick sense check on a scenario. Picture a host with a property valued at $500,000 and a modest existing balance. At 70% LTV the new loan is capped at 70% of value, and the proceeds are whatever remains after payoff and costs. The program’s cap is the ceiling; the coverage ratio is the second test. A file needs both enough equity and enough rental coverage. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
An important point on coverage: clearing 1.00 is not the same as positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, cleaning, and capex sit outside the calculation, and on an STR those costs are heavier than on a long-term rental.
Exceptions and Edge Cases
Programs that bar STR income. Some products exclude short-term income entirely and may still allow a long-term rent figure. If your lender’s product does that, the property is underwritten at the lower number.
Little or no history. Many programs want a hosting record, which is why most STR cash-outs go better on seasoned properties. A property recently converted from a long-term rental may fall back to a projection or a rent schedule. Lendmire’s piece Seasonal Income and the STR Cash-Out Refinance: How Twelve Months of Bookings Are Read walks through how peaks and troughs are handled.
Seasonality. A strong annual ratio can hide weak off-season months. Lenders reading twelve months of data average it, but your own cash flow doesn’t average itself. Reserves matter here.
Entity ownership. An LLC can hold the property, subject to lender program eligibility, and title seasoning and entity documents become part of the file.
Local rules. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. A property that can’t legally operate as an STR is a different underwriting problem.
Prepayment terms. Many DSCR loans carry them. Check the terms on both your existing loan and the new one before you commit.
Not every property type is available. Manufactured homes, log homes, and barndominiums are not offered through these programs.
Key Terms Defined
DSCR: Debt service coverage ratio, meaning the property’s rental income divided by its full monthly housing payment.
PITIA: Principal, interest, taxes, insurance, and association dues, the full payment used in the ratio.
Trailing twelve months (TTM): The most recent twelve months of actual income, averaged for underwriting.
Form 1007: An appraiser’s rent schedule that estimates monthly market rent, not nightly income.
Seasoning: How long you have owned the property or held the current loan before a refinance.
Haircut: A reduction a lender applies to projected or reported income before calculating coverage.
Who Should Pursue It, and Who Shouldn’t
A DSCR cash-out suits self-employed investors, people who have hit conventional property-count limits, and LLC holders. It does not need W-2 or tax-return income to qualify, though credit, property income, title, and payoff all get reviewed.
The flip point: if you are a salaried borrower with one rental, strong personal income, and a property with thin hosting history, a conventional route may cost less and avoid the STR income question entirely. If you have a full year of strong bookings and want proceeds for the next purchase, DSCR often fits better, because it reads the income that actually exists.
Think about what the proceeds are for. Pulling equity to buy a property where coverage already works is a straightforward thesis. Pulling equity to cover an STR that only barely clears coverage is a signal to look harder at the property first.
Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Mistakes That Sink Files
- Assuming any lender will take Airbnb income. Ask first.
- Expecting the appraisal to capture nightly revenue.
- Treating a 1.00 ratio as a guarantee. Credit, LTV, reserves, and seasoning still apply.
- Ignoring prepayment terms on the current loan.
- Skipping documentation.
- Refinancing a property with unresolved local-permit questions.
Frequently Asked Questions
Can I refinance an Airbnb if I’ve hosted for less than a year?
Sometimes, but it narrows the options. Most programs in the network expect about 12 months of hosting history. With less, a lender may use a market projection or a long-term rent figure, and leverage and terms may adjust. Waiting until the history is seasoned usually gives a stronger file.
Does Airbnb income help me get a better price or just qualify?
It mainly helps you qualify. Stronger coverage can open better pricing and leverage, but the income itself isn’t a pricing discount. Credit, leverage, and property type shape pricing too.
Will the appraiser count my nightly rates?
No. The appraiser establishes value, and the rent schedule form measures monthly market rent. The lender decides how your hosting income is counted, which is why the program choice matters.
Is 70% the maximum for every rental?
No. The 70% figure applies to short-term-rental collateral. Standard long-term rentals reach around 75% on cash-out across most of the network. Both are subject to lender guidelines.
Can an LLC hold the property?
Often yes, subject to program terms. Entity documents and title seasoning become part of the file, so expect to provide them.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. Reach the team at 828-256-2183 or request a quote.
Seasonal swings in bookings will keep deciding which short-term rentals look strong on paper and which look strong only in July, so the twelve-month average is the number worth studying before any application.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
About Lendmire
Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
Investors focused on short-term rentals can review DSCR loans for Airbnb and short-term rentals.
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References
1. McKissock: Form 1007 and STR Appraisals
2. Fannie Mae Appraiser Update June 2024
This article is part of Lendmire’s investment property cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much a Cash-Out Refinance Releases on a Home vs. a Rental Property · Rental Cash-Out Refinance Credit Requirements After a Late Payment · How to Size a Cash-Out Refinance on a Paid-Off Rental
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.