Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
The Quick Read: The 75% figure in the title belongs to standard long-term rental cash-out across most of Lendmire’s wholesale network, while a short-term rental (STR) cash-out generally reaches up to 70%, so the right provider for your file depends on how the property is used and documented.
- STR cash-out refinance on an investment property generally reaches up to 70% LTV, subject to lender guidelines.
- A standard long-term rental cash-out generally reaches about 75% LTV.
- STR files typically expect a 640 credit score, about 12 months of hosting history, and rent coverage of at least 1.00x.
- Payoff, costs, and reserves come out before cash reaches you, and coverage can cap the loan below the leverage limit.
- The provider that fits depends on your income documentation, hosting history, and leverage goal, not on a ranking.
DSCR Cash-Out Calculator
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Nov 5, 2026
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As of Nov 5, 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.
Why the 75% Number Needs a Label
Most investors who search for 75% LTV on an STR have seen that figure attached to investment-property cash-out. That figure is real, but it describes standard rentals. Lendmire is a mortgage broker, so it sees how many wholesale programs treat STR collateral. Across the network, STR collateral on a cash-out sits a step lower, at about 70%. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
STR purchases are different. A purchase can reach 75% LTV on the strongest files. That is where the 75% confusion often starts. A buyer reads the purchase ceiling and assumes it carries over to a refinance.
This article does not rank companies. A mortgage broker that shops several wholesale lenders can only answer one honest question: which program fits your property, your documents, and your leverage need. The providers that write STR cash-out depend on your situation. The sections below explain how those programs work.
Key Terms Defined
LTV (loan-to-value): The new loan balance divided by the appraised value of the property.
Cash-out refinance: A new, larger loan that pays off the old one and sends the difference to the borrower.
DSCR (debt service coverage ratio): Monthly rental income divided by the full monthly housing payment, which is principal, interest, taxes, insurance, and any association dues.
Seasoning: The length of time you have held the property or the current loan before a lender will count a new appraised value; about six months is a common expectation.
STR collateral: A property financed on the strength of nightly or weekly rental income, rather than a standard lease.
Hosting history: The record of bookings and deposits that shows the property has actually operated as a short-term rental.
How Underwriting Treats an STR Cash-Out, Step by Step
An STR cash-out file moves through six checks. Each one can limit the final loan amount.
Step 1: The transaction is defined. Any cash back to you at the closing table makes it a cash-out. The cash-out leverage cap then applies, not the higher cap used for a rate-and-term refinance.
Step 2: The income basis is chosen. This is where STR files differ most from long-term rental files. A lender may read income from trailing booking history, from a market projection, or from long-term market rent. Each method gives a different number for the same house.
Step 3: Coverage is calculated. Divide monthly income by the full monthly housing payment. STR programs typically start at 1.00x. Stronger ratios open better pricing and leverage. A separate path below 1.00x is available through select lenders in the network, with leverage and terms adjusted.
Step 4: The loan is sized. The loan is the lesser of two numbers. One is the leverage cap times appraised value. The other is the amount the rental income can support. For many files, coverage caps the loan before equity does.
Step 5: Cash is netted out. Payoff of the old loan, closing costs, reserves, and any prepayment charge come out first. Reserves commonly run around six months of the full monthly housing payment. They vary by lender, leverage, loan size, and transaction type. Because these items come out first, net cash can be noticeably smaller than the headline LTV suggests.
Step 6: Documents are collected. Expect platform earnings exports, bank statements showing deposits, an appraisal, entity papers if an LLC holds title, a credit report, and reserve proof. Personal income documents are generally not the focus. The property’s income is.
Clearing 1.00x is not the same as positive cash flow. The calculation compares rent to the housing payment only. Repairs, vacancy, management, utilities, and capital expenses sit outside it.
How STR Income Gets Counted
Income method is the biggest variable on an STR refinance. The table compares the common methods, not companies.
| Income basis | What it relies on | Typical fit |
|---|---|---|
| Trailing booking history | Platform earnings and bank deposits | Established hosts with a full year |
| Market projection | Third-party nightly-rate data, often reduced | Newer listings, if the program allows |
| Appraiser STR analysis | Narrative income addendum | Files needing a value-based check |
| Long-term market rent | Monthly rent from a standard appraisal form | Fallback, or where STR use is limited |
On a refinance, most programs we see in the network want about 12 months of hosting history. That matches the STR guideline: a 640 minimum score and about 12 months of host experience. Programs that accept projections instead of history exist, but they are the exception. They may also apply a reduction to the projected figure.
Appraisals add a wrinkle. Fannie Mae’s appraiser guidance explains that Form 1007 asks for Indicated Monthly Market Rent. It says multiplying a nightly rate by 30 is incorrect, and that the form cannot estimate an STR’s nightly fee. This is only an appraisal-form contrast. DSCR loans are non-agency products, so agency loan rules do not apply to them.
Class Valuation describes the DSCR-side answer. Appraisers use a separate narrative addendum, a short-term rental projected income analysis, instead of the 1007. HousingWire reports that forcing STR income onto a 1007 can produce artificially low coverage ratios. It also notes that UAD 3.6 will retire the legacy forms, including the 1007.
What 70% vs. 75% Does to Your Proceeds
The difference between the two ceilings is five points of value. That sounds small. On a cash-out, it can decide whether the loan is worth doing.
Picture an investor whose existing loan sits at 55% of appraised value. A standard rental cash-out at 75% LTV leaves room for new money equal to 20% of value. That is the gross room, before closing costs, reserves, and any prepayment charge. These percentages are illustrative, not a quote. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Now add coverage. A higher loan means a larger payment and a thinner ratio. Suppose the rent supports the 70% loan at about 1.15x. Pushing toward a higher balance could drop the ratio near 1.00x, or below it. The program may then reduce the loan to fit the income.
For that reason, the cash you actually need is often a better target than the ceiling. Work backward from the use of funds. A smaller loan with comfortable coverage is often easier to place than a maximum loan with none.
Lendmire’s illustrative calculator can help you test this. Treat it as an estimate, not a quote.
The Credit, Reserve, and Loan-Size Picture
For STR collateral, the baseline is a 640 credit score. Across the wider network, programs often want around 660 for standard files. Scores of 700 and above unlock the strongest leverage tiers. A 620 floor exists in parts of the network, but it is not the STR floor.
Standard programs run up to $3,000,000. Above $2,500,000, the network generally holds to 30-year fixed structures. Extended terms of 40 years and interest-only periods are available through select lenders in the network, and adjustable structures exist for investors who want them. Loans above roughly $1,500,000 typically step up to about nine months of reserves.
A larger down payment can lower the payment and lift the ratio. It does not erase leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
Some property types are not offered at all. DSCR on manufactured homes (single- and double-wide), log homes, and barndominiums falls outside these programs.
Edge Cases Where the General Rule Breaks
Short hosting history. A common story is a property bought with a bridge loan, renovated, and listed for only a few months. Programs that require 12 months of history will not count those bookings as full-year income. Some will fall back to appraiser-estimated STR income or to long-term market rent. Waiting for the history to build is sometimes the cleaner move.
Projections are gross figures. A market-data projection is not net income. Lenders may reduce it. Overstated projections are a common reason STR coverage falls short.
Seasonal markets. Income swings can lead to tighter coverage requirements or lower leverage on a vacation-area property.
Two-to-four-unit STRs. The single-unit rent form and the multi-unit form both assume a lease. Documentation matters even more here.
Recent purchases. Seasoning decides whether a lender values the property at appraised value or at cost. A cash-out right after buying may only pay off the bridge loan.
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. If STR use is restricted, the file may only qualify on long-term rent.
Coverage below 1.00x. This is available through select lenders in the network, with leverage and terms adjusted. It is a separate path from the programs that start at 1.00x. If you are reaching for it because the property does not cover its payment, test the deal before testing the loan.
How to Choose a Provider for Your Situation
Because Lendmire is a broker, the question is not which company wins. It is which program matches the file. Here is how the decision usually breaks down.
- You have a full year of hosting history and clean deposits. A trailing-history program is the natural fit. Expect up to 70% LTV on the cash-out, subject to lender guidelines.
- You listed recently. Ask whether a program accepts projections or a value-based income analysis. If none fits, the file may be better held until the history is there. For the documentation side, see Lendmire’s piece Top Short-Term Rental Cash-Out Refinance Providers With No Income Verification.
- You hold the property in an LLC. Entity-held files are common in DSCR lending, subject to lender program eligibility. Have the operating agreement and entity papers ready.
- You want maximum cash out. Compare the STR file with a long-term rent version. If STR use is permitted and documented, the STR route usually shows stronger income. The standard rental route offers a higher ceiling at 75%, so run both and compare the net.
- You plan to refinance again later. Ask about prepayment terms before you sign.
The complete DSCR loans guide covers the basics.
What to Prepare Before You Ask
A tidy file saves effort at every step. Gather these first:
- Platform earnings exports and bank statements for the full hosting period.
- Entity documents, if an LLC holds title.
- Proof of reserves.
- The current loan payoff information.
- Evidence of any required local permit or license.
- A list of what the cash will fund.
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. The file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Lendmire works through select lenders in its wholesale network, with DSCR programs across 41 markets, including Washington, D.C. Every file is underwritten individually, and nothing here is a commitment to lend.
Frequently Asked Questions
Can I get 75% LTV on an STR cash-out refinance?
Usually not. Across most of the network, STR collateral on a cash-out reaches up to 70% LTV, while a standard long-term rental cash-out reaches about 75%. The 75% figure does apply to an STR purchase on the strongest files. Final leverage depends on credit, coverage, and the lender’s review.
How long do I need to own the property before pulling cash out?
About six months of seasoning is the common expectation. Until then, the lender may value the property at cost instead of appraised value. A recent purchase may only support a payoff of the bridge loan, not new cash back.
What if I only have a few months of bookings?
Most STR refinance programs expect about 12 months of hosting history. Some select programs will use a projection or a value-based income analysis instead. Others fall back to long-term market rent. A broker can match the file to the method that fits.
Do I need to show personal income documents?
Generally, no. DSCR files qualify on documented income under the applicable program, with the focus on the property. You will still need credit, reserves, entity papers, and proof of the property’s operating income.
Does clearing 1.00x mean the property cash flows?
No. The ratio compares rent to the full housing payment only. Vacancy, repairs, management, utilities, and capital expenses are not in it. A file can clear the floor and still run thin in real life.
Next Step
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. Call 828-256-2183 or request a quote.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire — NMLS# 2371349 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
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References
1. Fannie Mae’s appraiser guidance
3. HousingWire on short-term rentals and the appraisal playbook
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 Cash Comes Out of a Short-Term Rental Cash-Out Refinance to Buy Out an Ex-Spouse? · How to Do a Cash-Out Refinance on a Rental as an Investor · Top Short-Term Rental Cash-Out Refinance Providers Before the Property Has Twelve Months
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.