The Quick Read: No honest ranking of providers exists, because the right lender depends on your property, credit, and leverage need. What you can know is how these loans work. On short-term rental collateral, a cash-out stops at about 70% of value, and large balances draw extra scrutiny.
- Short-term rental cash-out tops out around 70% LTV, against about 75% on a standard long-term rental, subject to lender guidelines.
- Expect a 640 minimum score and about 12 months of hosting history. A 1.00 coverage floor applies on both purchases and refinances.
- Standard programs run up to $3,000,000, and large files typically carry heavier reserves.
- The lenders that write these loans differ on reserves, income method, and structure, which is why a broker that shops several wholesale lenders matters.
- Passing the equity test is not enough. The rent has to cover the new, larger payment too.
Lendmire is a mortgage broker, not a lender, so it does not rank or recommend companies. It explains what the lenders in its network look for and how a large cash-out gets underwritten, step by step. That is more useful than a list of names, because the same lender can be a great fit for one file and the wrong one for the next.
DSCR Cash-Out Calculator
Run the cash-out numbers in your market
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Nov 5, 2026
Prefilled with starting assumptions — enter your property’s value, balance, taxes, and insurance for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
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.
Lendmire arranges DSCR financing through select lenders in its wholesale network, across 41 markets, including Washington, D.C. For the full picture of how these loans work, see the complete DSCR loans guide.
Key Terms Defined
Cash-out refinance: a new loan that pays off your old one and returns some of your equity as cash. It also counts as cash-out if it pays off a second lien that was not used to buy the property.
DSCR (debt service coverage ratio): the property’s monthly rent divided by its full monthly housing payment. A 1.20 means rent is 120% of the payment.
LTV (loan-to-value): the loan balance divided by the property’s appraised value. At 70% LTV, the lender is funding 70 cents of every dollar of value. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
PITIA: principal, interest, taxes, insurance, and association dues. It is the payment the rent has to cover.
Seasoning: the waiting period between buying a property and refinancing it. Lenders set it, not the law.
Short-term rental (STR): a property rented by the night or week through platforms such as Airbnb or Vrbo, rather than on a standard lease.
What Is a Short-Term Rental Cash-Out Refinance at This Size?
It is a refinance on a nightly-rental property that returns part of your equity as cash. Above $1 million, the same mechanics apply, but more lenders drop out, reserves rise, and leverage caps tighten. The loan is sized on the property’s income and value, not your paystubs.
Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Your credit, reserves, and experience still matter. DSCR loans are built for investment properties, not for a home you live in.
Two things make short-term rental collateral different from a standard rental. The income is less predictable, so lenders want proof of it. The leverage is also lower: about 70% on a cash-out for STR collateral, versus about 75% on a cash-out for a standard rental.
Who Provides These Loans?
Provider Types, Not a Ranking
Four provider types touch this product, and they suit different borrowers. The table compares them by type only, because the best fit depends on your situation.
| Provider type | Best fit | Watch-outs |
|---|---|---|
| Broker with wholesale network | Borrowers who want options | Fit depends on matching file to lender |
| Single direct non-QM lender | Files that match its one box | One set of overlays, no comparison |
| Large depository institutions | Borrowers with deep banking ties | Often underwrite to personal income |
| Hard-money lenders | Short bridge needs | Shorter terms, built for exits |
A broker’s advantage at this size is comparison. Across a wholesale network, programs differ on reserves, how they count STR income, and which structures they offer. Some programs are flexible on credit and reserves, while others want stronger credit and more reserves but give better terms.
Lendmire works this way. It matches your scenario to the lenders whose guidelines fit it, rather than steering every borrower to one program.
How Underwriting Treats the File, Step by Step
Underwriting follows a fixed order. Each step can cut the loan back, so the final amount is whichever test binds first.
Step 1: Confirm the transaction type. If the loan returns cash or pays off a non-purchase-money second lien, it is a cash-out. That puts it under the lower cash-out leverage cap.
Step 2: Prove the income. On a refinance, the natural evidence is your operating history. Lenders typically want about 12 months of hosting experience and records to match. That means platform earnings exports, property-manager statements, and bank deposits that tie to them.
Step 3: Order the appraisal. The appraisal sets value, and value sets the LTV. At large balances, extra review of the comparables is common. Value gets tested harder than income does.
Step 4: Run the coverage test. The lender divides documented rent by PITIA. A bigger cash-out raises the payment and lowers coverage. Many select programs start at 1.00, and stronger ratios open better pricing and leverage.
Step 5: Check credit, reserves, and seasoning. STR files generally want a 640 minimum score. Scores of 700 and up unlock the strongest leverage tiers. The seasoning clock is typically about six months.
Step 6: Match entity and title. Many investors hold property in an LLC, subject to lender program eligibility. The ownership documents have to match the file.
The loan comes out at the lowest of the amounts those tests allow. You can clear the equity test and still miss on rent.
The Appraisal and Income-Method Gap
A standard rent schedule can understate a nightly-rental property. The appraisal form for rent estimates is Form 1007, which values a property as a long-term lease. Form 1025 covers small 2-4 unit income properties. Both are listed in the Fannie Mae Selling Guide.
DSCR loans are not agency products. Those forms simply give appraisers a familiar format. The agency’s own rules on when to use them do not govern a DSCR file.
Here is what that gap looks like. These inputs are modeled assumptions, not market data. Say a property’s long-term rent schedule produces coverage near 0.90x. Its documented STR history produces coverage near 1.25x. Same house, same loan, and two different answers depending on which income the lender counts.
When the long-term figure falls below 1.00, you have options. Select lenders in the network offer sub-1.00 programs, with leverage and terms adjusted. A lender may also review interest-only or longer-term structures that lower the payment. Or it may rely on documented STR income. Qualification stays subject to lender guidelines, credit approval, and property review.
One more caution: clearing 1.00 is not the same as positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation.
Jumbo Versus Standard Size: What Changes
Above $1 million, the product mostly stays the same, but the margins shrink. Standard programs in the network run up to $3,000,000. These are the verified ranges for the two collateral types.
| Factor | STR collateral | Standard rental |
|---|---|---|
| Cash-out LTV | up to 70% | up to 75% |
| Purchase LTV | up to 75% | 75%-80% |
| Minimum score | 640 | about 620-660 |
| Hosting history | about 12 months | Not required |
| Coverage floor | 1.00 | 1.00 on select programs |
Ranges are typical and subject to lender guidelines. Not every file reaches the top of a range.
Reserves are the other lever. They vary by lender, leverage, loan size, and transaction type. Around six months of PITIA is common. Loans above $1,500,000 typically step up to about nine months. Above $2,500,000, the network generally holds to 30-year fixed structures, while select lenders in the network offer extended 40-year terms and interest-only periods as exceptions to that default.
The market backdrop explains why overlays tighten as balances grow. HousingWire reports that a major bank’s research arm projects non-QM originations rising from about $108 billion to about $175 billion, driven by DSCR. It also notes that delinquencies have crept up in older loan vintages. American Banker adds that larger balances tie to higher delinquency and faster prepayment in the data.
Heavier checks on large cash-outs are Lendmire’s own reading of what that data implies, not a sourced finding.
Where the General Rule Breaks
The 70% cap and the 1.00 floor are guidelines. These edge cases are where files change shape.
- Thin hosting history. A property with under 12 months of operating history may not qualify on STR income. A lender may fall back to the long-term rent figure.
- Second-lien payoff. Paying off a non-purchase-money second lien makes the loan a cash-out even if no cash comes back to you.
- Early seasoning. Inside the seasoning window, many lenders size the loan on your cost basis, not the appraised value. A rate-and-term refinance now, with a cash-out later, is a common alternative path.
- Crossing the size ceiling. If a payoff pushes the balance past roughly $3,000,000, the file leaves the standard programs.
- Ineligible property types. Manufactured homes, log homes, and barndominiums are not offered in the network’s DSCR programs, however good the rent looks.
- 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.
- Projection errors. Projected income tools can miss in either direction, so lenders lean on actual history for refinances.
What Cuts a Large Cash-Out Back
Each test below can shrink the loan on its own. Knowing which one binds tells you what to fix.
| What binds | What it means | What helps |
|---|---|---|
| Leverage cap | Loan limited by value | Lower draw or higher value |
| Coverage | Rent too low for new payment | Smaller draw or longer term |
| Credit tier | Score limits the LTV tier | Raise the score before applying |
| Reserves | Not enough liquid funds | Document more assets |
| Seasoning | Too early to use appraisal | Wait or size on cost basis |
A larger down payment lowers the payment and can lift coverage. It never erases leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
Document Checklist Before You Ask for a Number
Gather these first. A complete package lets a broker match the file to the right lender on the first pass.
- Twelve months of platform earnings reports and matching bank deposits.
- Property-manager statements, if you use one.
- Your current mortgage statement and any second-lien payoff details.
- Proof of local permission to operate a short-term rental at that address.
- Entity documents and title records, if the property sits in an LLC.
- Statements showing liquid reserves that are not tied to the cash-out itself.
- The insurance declaration page and HOA information, if any.
Should You Cash Out Now or Refinance in Steps?
This one is a genuine judgment call. A cash-out at 70% LTV gets you the most capital today but raises the payment and thins coverage. A smaller draw keeps the ratio healthy and the file simpler. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
A step approach can also work. Do a rate-and-term refinance first, then draw cash once seasoning and history are in place. If the cash funds the next purchase, run the new payment through the coverage test first.
Market data adds little here, beyond one point. KESQ’s Stacker analysis puts loans above $1 million at about 28% of new non-QM production, so large files are common enough to be well-served.
Frequently Asked Questions
Which providers offer short-term rental cash-out refinances above $1 million?
A mix of non-QM lenders, and a broker can shop several at once. The ones that write your loan depend on your property, score, leverage, and documents. Lendmire does not name or rank companies. It matches the file to wholesale lenders whose guidelines fit it.
How much can I pull out on a short-term rental?
Up to about 70% of value on STR collateral, subject to lender guidelines. Credit, reserves, and rent coverage can pull the number lower. Whichever test binds first sets the loan.
Can I refinance without a full year of hosting history?
Possibly, but the income basis changes. STR files usually expect about 12 months of experience. With less, a lender may use the long-term rent figure instead, and select lenders can accept sub-1.00 coverage with leverage and terms adjusted.
How do reserves change on larger loans?
They rise with balance. Around six months of PITIA is common, and loans above $1,500,000 typically step up to about nine months. The exact requirement varies by lender, leverage, and transaction type.
Does passing 1.00 coverage mean the property cash flows?
No. DSCR compares rent to PITIA only. Vacancy, repairs, management, utilities, and capital expenses sit outside it, so run your own operating numbers too.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
A DSCR-focused mortgage broker, Lendmire (NMLS# 2371349) places investor financing across 41 markets — 40 states plus Washington, D.C. — with DSCR eligibility generally reviewed by the lender on property cash flow instead of tax returns, subject to lender guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in 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
2. HousingWire: non-QM originations
3. American Banker: jumbo loans in non-QM
4. KESQ / Stacker: conforming share and non-QM
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: Short-Term Rental Cash-Out Refinance Lenders When Borrowing Through an LLC · Top Short-Term Rental Cash-Out Refinance Providers on a Free-and-Clear Rental · Short-Term Rental Cash-Out Refinance Requirements for an Out-of-State Investor
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.