The Quick Read: Yes, when the rental meets the program’s property, lease, and equity tests, because the line is reviewed on the property’s rent and the tenant’s job title does not decide the file. A DSCR HELOC is a home equity line on a rental, qualified primarily on property-level rental income covering the payment, subject to lender guidelines.
- A furnished rental on 13-week nurse contracts reads as a mid-term rental, not a short-term one.
- A lease in place is required, and rent used for lender review is the lesser of the appraisal’s market rent and the lease, unless three months of receipts support a lease above market.
- A second lien tops out at 70% CLTV at a 720 score or better, on lines of $50,000 to $500,000, subject to underwriting.
- The line is offered in 15 of Lendmire’s 16 licensed states, every licensed state except Tennessee.
Lendmire is a mortgage broker. It arranges these lines through a wholesale lender in its network, and the lender approves every file individually.
Why the Travel Nurse Label Doesn’t Matter
The underwriter looks at the rent, the lease, the equity, and your credit. Occupation never enters the math. A nurse, a traveling engineer, and a family relocating for six months all produce the same kind of file: a furnished rental with a lease.
What matters is the stay length. Furnished stays of more than 30 days, up to about a year, are called mid-term rentals. BiggerPockets defines the category as furnished property rented for more than 30 days but under a year, and it names the “traveling nurse model” as a common label for it. Nightly or weekly stays are different. Those read as short-term rentals, and they change how a lender looks at the income.
The property must also be a rental you do not live in, since a line is never offered on your own home or a second home.
How the Line Works Across Lendmire’s Network
Here is the structure. A DSCR HELOC is a standalone second lien behind the first mortgage you keep. On a rental with no mortgage, it is a standalone first lien. It is never closed together with a purchase and never sits in third position. The LLC can stay on title, and the members sign as guarantors.
Your personal income is not calculated, and the file needs no tax returns, W-2s, or pay stubs. The rent qualifies the line, subject to lender guidelines.
The coverage test is a minimum DSCR of 1.10x. DSCR, the debt service coverage ratio, is gross monthly rent divided by the qualifying payment. That payment is a fully amortizing payment on the entire credit limit at a stressed start rate, so the lender tests the whole line, not just what you draw. Taxes and insurance are not part of that qualifying payment. On a second lien, confirm on the file how the lender treats the first-mortgage payment, because the lender’s own coverage calculation governs. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The terms are straightforward:
- The draw period is 5 years, interest-only on the drawn balance.
- The repayment period is 25 years, fully amortizing, with a 30-year maturity.
- The rate is variable, with disclosures from the lender.
- At least 80% of the line is drawn at closing, and the closing draw is never less than $50,000, so on the smallest lines the whole line is drawn at closing. Later draws are at least $5,000 each.
Which Rent Counts for a Nurse Rental?
This is where travel nurses actually change the file. Rent is the lesser of the appraisal’s market rent and the lease, unless three months of receipts support a lease above market.
Landlords may expect the furnished premium to count, but the appraiser’s market rent schedule is what the lender reads. The appraiser produces that schedule: Form 1007 for a one-unit rental and Form 1025 for two to four units, per the Fannie Mae Selling Guide. The Form 1007 instructions say it exists to obtain market rent on a single-family investment property. That guidance governs appraisers, not DSCR programs, but it shows how the schedule gets built.
Picture a furnished three-bedroom whose actual nurse rent runs well above unfurnished comps. If the appraiser’s market rent comes in lower, the lower figure drives your coverage ratio, unless three months of receipts support the higher lease. Your real cash flow can look stronger than the number that qualifies the line.
Does a 13-Week Contract Count as a Lease?
A lease in place is required. A signed 13-week agreement is a lease. According to investor commentary on BiggerPockets, travel nurses often want contracts of about that length, so a signed 13-week agreement is the setup to plan around.
| Setup | What the file rests on |
|---|---|
| Nurse signed a 13-week lease | The lease, tested against market rent |
| Staffing agency or company master lease | The signed master lease, same test |
| Month-to-month furnished tenant | Written agreement plus rent receipts |
| Vacant between contracts | A lease in place is required |
| Nightly or weekly stays mixed in | Reads as short-term rental |
The vacancy row matters most, because the line needs a lease in place at the time of the file. Timing the application while a nurse is in the unit is therefore a practical step. A two-to-four-unit property may have at most one vacant unit.
Keep the paperwork tidy. Pull the lease or agreements, rent receipts, the first-mortgage statement, and entity documents if an LLC holds title. Hazard insurance must cover both liens, with flood coverage where required.
What Gets a Nurse Rental Declined?
Several program rules matter more than the tenant, and the list below covers them:
- Seasoning. A rental bought or refinanced inside the last 6 months is not eligible (that clock runs from the last note date to the new note date), and the owner must have held title for 6 months (settlement date to note date).
- Credit. A second lien needs a 720 score or better. There is no second-lien tier below that. A first lien on a paid-off rental starts at 700.
- Mortgage history. No 30-day late in the last 12 months, and 48 months since a bankruptcy, foreclosure, short sale, or deed-in-lieu.
- Property type. Rural-designated property, condotels, row homes, and leaseholds are outside this program. So are properties listed for sale in the prior 2 months and properties with a solar lien.
- The first lien. Some second-lien lenders will not sit behind a non-QM first mortgage, so confirm your existing loan permits a junior lien.
- HOA rules. Many associations set a 30-day minimum rental period, which is one reason investors choose mid-term stays, per BiggerPockets investor discussion. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
How Much Can You Pull Out?
Leverage depends on the lien.
Second lien (you keep your mortgage): combined loan-to-value, meaning the first mortgage balance plus the new line divided by value, goes up to 70% CLTV at a 720 score or better, on lines up to $500,000.
First lien (no mortgage on the rental): loan-to-value of 75% at 740 or better and 70% at 700 to 739, on lines up to $500,000. Lines above $500,000, up to $1,000,000, carry a 65% LTV ceiling at 720 or better. A declining-market flag lowers the ceiling 5 points. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
For a line up to $400,000, valuation is an automated valuation with a property inspection report, or a full interior appraisal. Above $400,000, expect a full interior appraisal. Appraisal waivers are not accepted. No reserves and no cash to close are required, and a borrower can have at most 5 loans or $2,500,000 with the program. These are ceilings and floors, never offers, and all are subject to underwriting.
Line, Closed-End Second, or Cash-Out Refinance?
A dedicated line is a narrow product. Some products marketed as a DSCR HELOC are really closed-end seconds that pay out one fixed amount, so confirm that the line is revolving before you compare options.
| Factor | DSCR HELOC | DSCR Cash-Out Refinance |
|---|---|---|
| Existing first mortgage | Stays in place | Gets replaced |
| Structure | Revolving line | One lump sum |
| Coverage test | 1.10x on full line, stressed | Set by the cash-out program |
| Fit | Keep first mortgage, tap equity | Need more leverage or lower score |
The draw rule shapes the choice. At least 80% of the line is drawn at closing, and the closing draw is never less than $50,000, so this is not a standby cushion. A borrower who wants only a small amount of cash should weigh that structure against a different product. Lendmire’s piece Best Investment Property HELOC Program on a Mid-Term Rental for Travel Nurses goes deeper on that setup.
Consider an investor at 700 with a first mortgage in place. The second-lien floor is 720, so a line behind that mortgage is off the table. A cash-out refinance is the realistic fallback, subject to lender guidelines. Another investor with a paid-off nurse rental at 745 may qualify for a first-lien line at up to 75% LTV.
Concentration is also a risk. Demand near one hospital can thin out, and BiggerPockets commentary cautions that travel nurses are a smaller share of mid-term guests than many assume. The lender cares about market rent, not the nurse label, but you should care about who fills the unit in month seven. The rate is variable too, so stress-test your cash flow, not only the qualifying ratio.
Key Terms Defined
DSCR: gross monthly rent divided by the qualifying payment.
Mid-term rental: a furnished rental leased for more than 30 days and under about a year.
CLTV: the first mortgage balance plus the new line, divided by the property’s value.
Seasoning: the waiting period after you buy or refinance before a line is available.
Market rent: what the appraiser concludes the property would rent for on monthly leases.
What to Do Before You Apply
1. Confirm the rental is a non-owner-occupied one-to-four-unit property outside the excluded types.
2. Check both six-month seasoning clocks.
3. Read your first-mortgage terms for any limit on junior liens.
4. Gather lease copies and three months of rent receipts.
5. Compare the line against a cash-out refinance for your score and leverage.
Our complete DSCR loans guide explains the broader structure. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
If you are considering a home equity line on a rental property and want to see how the numbers work, Lendmire can help you compare DSCR HELOC options based on the property, the rent, the equity available, credit profile, combined leverage, and your goals. Reach the team at 828-256-2183 or request a quote.
Frequently Asked Questions
Does a travel nurse lease count as a short-term rental?
Generally no. Stays of more than 30 days read as mid-term or long-term, while nightly or weekly stays read as short-term. A 13-week contract falls in the mid-term group, subject to lender review.
Can my LLC hold title to the rental?
Yes, on an investment property. The LLC can stay on title, the members sign as guarantors, and a title holder who is not a borrower signs a non-borrowing owner acknowledgment and the security instrument, subject to program terms.
How soon after buying can I open a line?
Two six-month clocks apply: the line is not available on a rental bought or refinanced in the last 6 months (last note date to new note date), and title must have been held for 6 months (settlement date to note date).
Will the lender count my furnished income?
The rent used for lender review is the lesser of the appraisal’s market rent and the lease, unless three months of receipts support a lease above market. A furnished premium helps only to the extent the lease and receipts support it.
Is personal income part of the file?
No personal income calculation, tax returns, or W-2s. The line qualifies primarily on the rental’s income covering the payment, subject to lender guidelines. The lease, credit report, and valuation are all documented.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker that arranges DSCR home equity lines of credit on rental property in 15 of its 16 licensed states (every licensed state except Tennessee) through wholesale lenders. The line is qualified on the rental’s rent rather than the owner’s personal income, and every line is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. BiggerPockets: Medium-Term Rentals
3. BiggerPockets forum: Out-of-State Mid-Term Rentals
4. BiggerPockets forum: Mid-Term Rentals
This article is part of Lendmire’s DSCR HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best DSCR HELOC Program for a Rental Qualified on Its Rent · What a DSCR HELOC Lender Looks at When You Just Refinanced the Rental? · Top DSCR HELOC Providers on a Fourplex 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.