The Quick Read: A cash-out refinance on an Airbnb you already own is usually a DSCR loan placed with a non-bank investor lender, because those programs qualify primarily on property-level rental income covering the payment, subject to lender guidelines, while many banks underwrite on your personal income and may not treat Airbnb earnings as rental income.
- Cash-out on short-term-rental collateral typically tops out near 70% LTV, while standard long-term rentals reach about 75%.
- Expect a 640+ credit score, about 12 months of hosting experience, and a 1.00 coverage floor on refinances.
- The appraisal gives a value and a long-term rent opinion. Your platform statements prove the Airbnb income.
- The loan is the lesser of what the LTV cap allows and what rent coverage supports.
No list of banks belongs on this page, because each investor program writes its own terms and those terms change. The best program for your situation depends on your property, credit, leverage goal, and records.
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.
DSCR stands for debt service coverage ratio. It compares the property’s rent to the full monthly payment on the loan. That payment is called PITIA: principal, interest, taxes, insurance, and association dues. Lendmire is a mortgage broker that works with a wholesale network of DSCR lenders across 41 markets, including Washington, D.C., so the explanations below come from how those programs operate.
Why Do Many Banks Pass on This Loan?
Banks are built for borrowers with pay stubs and tax returns. A depository lender usually asks how much you earn, what you owe, and whether the ratio between the two fits its rules. An Airbnb with a strong year of bookings still has to fit that frame.
Two things get in the way. First, nightly income is lumpy, and many conventional underwriting rules were written around monthly leases. Second, a portfolio investor with several loans often hits the debt-to-income ceiling long before the properties run out of rent.
DSCR programs skip that test. 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.
That is why the answer to the title question is mostly non-bank lenders. They are called non-QM lenders, meaning they write loans outside the standard government-style mortgage box. A broker shops several of them and matches your file to the program that fits.
Key Terms Defined
Cash-out refinance: a new, larger loan that pays off the current one and hands you the difference as cash.
LTV (loan-to-value): the loan balance divided by the appraised value, shown as a percentage.
Seasoning: the waiting period a lender wants between buying or last refinancing a property and the new loan.
Hosting history: the months you have operated the property as a short-term rental, shown by platform payout statements.
Reserves: liquid money you keep after closing, usually counted in months of PITIA.
Prepayment penalty: a fee for paying off the loan early, often during the first several years.
Form 1007 and Form 1025: appraisal forms that estimate long-term market rent. Form 1007 covers single-family homes, and Form 1025 covers two-to-four-unit properties.
How Underwriting Treats an Existing Airbnb, Step by Step
An existing Airbnb gets reviewed as an investment property with its own operating record. The lender checks the income evidence, the lawful use, the appraisal, and the coverage on the new, larger payment. Each step can shrink the loan.
1. Pick the loan type. The property is classed as a non-owner-occupied investment. A former second home or primary residence that now runs as an Airbnb must be documented as an investment property.
2. Assemble the income evidence. Gather about 12 months of payout statements from the platform or your property manager. Tie those payouts to bank deposits. A dedicated account for rental proceeds makes that easy.
3. Show the use is lawful. Lenders look for a required permit or registration, association rules that allow paid guests, and insurance that covers short-term use. 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.
4. Order the appraisal. It returns a value and a market-rent opinion. It may also include a separate short-term income narrative.
5. Apply the lender’s discount. Lenders usually reduce gross Airbnb receipts to allow for higher operating costs. The method differs by program.
6. Compute DSCR. Adjusted income is divided by the new payment, which is larger than your current one because you are borrowing more.
7. Size the loan. The loan is the lesser of the LTV cap applied to appraised value and the amount that rent coverage supports.
8. Check credit and reserves. Short-term-rental files in this network start at a 640 score. Reserves commonly run about six months of PITIA and vary by lender, leverage, and loan size.
9. Net the proceeds. Cash to you is the new loan minus the payoff, closing costs, and prepaid items.
About six months of seasoning is the common expectation for cash-out across most of the network. Your hosting history is a separate clock.
Three Ways to Prove the Income
Lenders count Airbnb income in one of three ways, and the method you choose changes the coverage number. On a property you already operate, your own trailing history is usually the strongest evidence.
| Method | What it relies on | Fit for an existing Airbnb |
|---|---|---|
| Trailing platform history | About 12 months of payouts | Usually strongest |
| Market-data projection | AirDNA-type estimates | Mostly a purchase tool |
| Appraiser’s long-term rent | Form 1007 or 1025 | Often the lowest figure |
Projections help when a property has no operating record. On a property with history, they are a weak basis for cash-out.
What the appraisal can and cannot prove
Many borrowers assume the appraiser will validate their nightly rates. It does not work that way. Fannie Mae’s appraiser update on Form 1007 says the form asks for monthly market rent supported by comparables leased monthly, and that it cannot be used to estimate a short-term rental’s nightly fee. The form itself is the Single-Family Comparable Rent Schedule. DSCR loans are not agency loans, but programs borrow the form.
Multiplying your nightly rate by 30 is therefore not an accepted shortcut.
The appraisal also cannot raise value because your business performs well. McKissock, an appraiser-education provider, notes that business income cannot be folded into the value and that judging income is the lender’s job. When an appraiser wants a short-term estimate, ClassValuation says the work goes into a separately labeled narrative addendum.
HousingWire argues that forcing Airbnb income onto the long-term rent form can produce artificially low coverage ratios. It also reports that a newer appraisal data standard will retire legacy forms, including the 1007. Choose your income method with the lender before the appraisal is ordered, so the numbers do not conflict.
A Worked Example in Ratios
Say you own a single-family Airbnb with a full year of clean statements. On your current loan, discounted Airbnb income covers the payment at roughly 1.35x. That is a modeled assumption, not a market figure.
You want cash out at the 70% short-term-rental ceiling. The new loan is larger, so the payment rises, and coverage falls to roughly 1.05x. The file still clears the 1.00 floor on refinances, but the margin is thin.
Now run the same file on the appraiser’s long-term rent opinion instead of your history. Coverage might land in the mid-0.8s. A program that uses the higher of the two methods would still use your history. A program that only reads the appraisal would shrink the loan or stop the file.
Here is the catch most borrowers miss. LTV can pass while coverage fails, because a bigger loan means a bigger payment. Taking less cash out lowers the payment and can lift DSCR. Even so, coverage never erases leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
Clearing 1.00 also does not mean positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation.
Structures and Variations That Exist
The spine of these programs is the 30-year fixed loan. Select lenders in the network also offer extended terms such as 40-year amortization and interest-only periods. Adjustable-rate structures exist for investors who want them.
Loan sizes reach up to $3,000,000 on standard programs. Above $2,500,000, the network generally holds to 30-year fixed structures. Balances below the standard-program minimum route through select lenders.
Leverage differs by transaction, so keep the labels straight:
- Short-term-rental purchase: up to 75% LTV on the strongest files.
- Short-term-rental cash-out: typically 70% LTV.
- Standard long-term rental cash-out: typically 75% LTV.
Purchase leverage does not carry over to a refinance. Two-to-four-unit Airbnbs are reviewed on Form 1025 instead of Form 1007.
Where the General Rule Breaks
The rules above describe the typical file. These edge cases bend them.
Short history or a recent conversion. Only the months since you switched from a long-term tenant count as Airbnb income. With fewer than about 12 months, some programs fall back to long-term rent, some use the higher of the two methods, and some cap leverage. This is program-specific, and a broker can steer you toward the version that fits.
Appraisal below your history. Supply fuller statements, or take less cash. Fighting the number rarely works.
A former second home or primary residence. It must be re-documented as an investment property before it can go through a DSCR program.
Coverage below 1.00. A 1.00 floor is where many select programs start. A separate path through select lenders in the network takes coverage below 1.00, with leverage and terms adjusted. No-ratio structures are available only through select lenders, generally for borrowers who already own a primary residence.
Ineligible property types. Manufactured homes (single- and double-wide), log homes, and barndominiums are not offered through these programs, however well they perform on the platform.
Prepayment penalties. Many DSCR programs carry them, so refinancing into a DSCR loan once beats refinancing serially.
Seasonal swings. A year of statements includes the weak months. Lenders look at the total, so a strong summer can carry a quiet winter, but a thin year gives the lender little room.
What the Decision Looks Like in Practice
Start with two questions. Do you have about 12 months of statements that tie to your bank deposits? And does the coverage still clear 1.00 once the loan grows to the 70% ceiling?
If yes to both, a short-term-rental cash-out is likely worth pricing. If the first is a no, wait and build the record, or consider the long-term-rent path at its higher 75% ceiling. If the second is a no, take a smaller cash-out. That size may produce cleaner coverage.
A short document checklist prepares you:
- Platform payout statements and matching bank statements
- Permit or registration, where your location requires one
- HOA rules, if any, and a policy covering short-term use
- Current mortgage statement and entity documents, if the property is titled in one
- Proof of reserves
Questions to ask any lender, bank or not:
- How do you count Airbnb income on an existing property?
- What discount do you apply to gross receipts?
- What is your cash-out cap on short-term collateral?
- Is there a prepayment penalty, and how long does it last?
This loan is a poor fit when the borrowing amount would leave rent barely covering the payment. It is also a poor fit when you cannot document the hosting history, or when you plan to sell within the penalty period. Spend proceeds on assets that can carry the new payment, such as a down payment on another rental or needed improvements. Tax treatment varies; consult a qualified professional.
The complete DSCR loans guide covers the full program from the top.
Frequently Asked Questions
Will a regular bank do a cash-out refinance on my Airbnb?
Some may, but a bank program built around personal income and debt-to-income ratios often fits a portfolio investor poorly. Investor programs that qualify primarily on property-level rental income are the usual route. Eligibility and terms vary by lender, and a broker can compare them for you.
Can I use my purchase LTV for the refinance?
No. Short-term-rental purchases can reach 75% LTV on the strongest files, while cash-out on short-term collateral typically tops out near 70%. Standard long-term rentals reach about 75% on a cash-out.
Do I need a long-term lease on an Airbnb?
Usually not, because the income evidence is your hosting history. The appraisal will still include a long-term rent opinion, which some programs use as a cross-check or fallback. What the lender uses depends on the program.
How much hosting history do I need?
Expect about 12 months on most short-term-rental files. With less, some programs fall back to long-term rent, use the higher of two methods, or limit leverage. Credit also matters, with 640 as the typical minimum for short-term collateral.
What coverage ratio do I need?
On short-term-rental refinances, 1.00 is where the program starts. Stronger ratios can open better pricing and leverage. Coverage below 1.00 is available through select lenders in the network, with leverage and terms adjusted.
Your 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. Programs are reviewed individually. This is not a commitment to lend. The lenders that write this loan depend on your documents and your plan for the cash.
For how equity extraction works on an investment 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
1. Single-Family Comparable Rent Schedule
2. McKissock
4. 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: Banks That Offer a DSCR Cash-Out Refinance on a Two-to-Four Unit Investment Property · Banks That Offer a Cash-Out Refinance to Buy a Rental Without Selling Other Investments · Best Short-Term Rental Cash-Out Refinance Program to Build a Rental Property Portfolio
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.