The Quick Read: The best program for your file depends on which rent figure the lender counts, because a furnished travel-nurse stay of 30 days or more is usually underwritten on the appraiser’s market rent, not on what the nurse pays. Most programs in Lendmire’s wholesale network cap a standard-rental cash-out at 75% LTV, and the new, larger payment must still clear the coverage test.
- Cash-out on a standard rental tops out at 75% LTV, with about 6 months of seasoning from title recording.
- Coverage of 1.00 is where select programs start; stronger ratios open better terms.
- A furnished premium above market rent is often discounted or left out of qualifying income.
- A bigger draw raises the payment and lowers coverage, so a smaller draw can be the version that passes.
- Cash-out is not the same as cash in hand. Payoff, costs, reserves and any prepayment charge come out first.
A mid-term rental is a furnished stay of more than 30 days and under a year. Travel nurses on contracts of about 13 weeks are the classic tenant, and this guide walks the file from classification to net cash. It sits beside Lendmire’s complete DSCR loans guide, which covers the basics.
DSCR Cash-Out Calculator
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Key Terms Defined
DSCR: monthly rent divided by the full monthly payment (principal, interest, taxes, insurance, and any HOA dues).
Mid-term rental (MTR): a furnished rental with stays of 30 days to under a year, often to travel nurses or corporate assignees.
Cash-out refinance: a new loan that pays off the old one, is sized to appraised value and rent coverage, and returns the difference as cash.
Seasoning: the ownership period a lender requires before cash-out is available, measured from title recording.
Form 1007: the single-family rent schedule an appraiser uses to give an opinion of market rent from monthly lease comparables.
Form 1025: the small residential income report used on 2-4 unit properties, with a rent opinion for each unit.
How Do Lenders Count Rent on a Nurse-Rented Furnished Property?
They count the rent the appraiser can support, and the signed lease can cap it. Mid-term rental is not its own income category in DSCR lending. Programs are written around long-term rent or short-term rental income, so the file has to land in one box.
A furnished stay of 30 days or more often reads as lease-based, which keeps it out of short-term-rental treatment. That is not guaranteed. Very short furnished increments can still draw STR scrutiny, and the file then needs platform booking history instead.
The appraisal does two jobs. It sets the value that LTV is measured against, and it sets the market rent that drives coverage. On a single-family home, the rent opinion usually comes on the single-family rent schedule form, a grid of lease comparables with rent adjustments. Furnishing premiums are not a built-in line. On a 2-4 unit, the Selling Guide’s list of appraisal forms names the 1025, which gives a rent opinion per unit.
Agency rules do not govern DSCR loans. The forms are simply what appraisers use. Still, the form’s logic explains the result. An appraiser update on the rent schedule says it calls for monthly market rent supported by comparables leased monthly, and that it was not designed for short-term rentals.
So a travel-nurse furnished premium is often discounted or excluded. Some lender overlays are conservative about it. Others accept a documented furnished lease at face value. A broker who sees many lenders’ guidelines can steer the file toward the second group.
Which rent is used also depends on lease status:
- Newly leased or mid-lease: the lender generally counts the lower of the signed lease or the appraiser’s market rent.
- Month-to-month or lapsed lease: market rent alone usually governs.
- 13-week furnished lease: treat it as evidence of rent, not the final rent figure.
Run the numbers on a modeled case. If furnished income runs well above the appraiser’s rent, the operating picture looks strong, but the qualifying ratio still rides on the lower figure. That gap decides how much cash-out the file supports.
What Does “Best Program” Mean for This File?
The best program is the one whose rent treatment, leverage, seasoning and prepayment terms fit your property and goal. No single lender wins on every factor, which is why a broker that shops a wholesale network matches the scenario to the program instead of the other way around.
| Factor | What to check |
|---|---|
| Rent treatment | Does the program accept market rent only, or a documented furnished lease? |
| Cash-out leverage | Standard rentals top out at 75% LTV on a cash-out |
| Coverage floor | 1.00 is where select programs start; stronger ratios help |
| Seasoning | About 6 months from title recording |
| Credit | 620 floor in parts of the network; most want around 660; 700+ for top tiers |
| Reserves | Commonly about 6 months of PITIA; about 9 months above $1,500,000 |
| Prepayment | Length and structure on the new loan |
Coverage below 1.00 is available through select lenders in the network, with leverage and terms adjusted. No-ratio structures are available only through select lenders, generally for borrowers who already own a primary residence. Neither is the default path for a nurse-rental file, and both change the leverage picture.
Loan size matters too. Standard programs run up to $3,000,000, and above $2,500,000 the network generally holds to 30-year fixed structures. Extended terms, interest-only periods and ARM structures exist through select lenders for investors who want them. Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Lenders still review the guarantor’s credit, and DSCR loans typically carry a personal guarantee.
How Does the Cash-Out Math Work, Step by Step?
Think of it as a sequence: value, loan size, payoff, costs, then net cash.
1. Set the goal. Rate-and-term, cash-out, or a DSCR-to-DSCR refinance. Taking cash from a free-and-clear property still counts as cash-out.
2. Get the appraisal. It returns value and market rent. Value times the 75% ceiling sets the maximum new loan on a standard rental.
3. Subtract the payoff. The existing balance comes out of the new loan first. Refinancing out of a DSCR loan can trigger a prepayment charge, so check the old note.
4. Test coverage on the new payment. This is where files break. A bigger loan means a bigger payment, so the ratio falls as you pull more cash. A file can pass the LTV test and fail the rent test.
5. Subtract costs and reserves. Closing costs, required reserves and any prepayment charge reduce what you actually receive.
6. Confirm seasoning. About 6 months from title recording is the common expectation. Seasoning is lender policy, not law. A cash buyer may use delayed financing, which is a cash-out with a seasoning exception that still carries the cash-out LTV ceiling.
A modeled illustration: a rental covering its payment at about 1.40x could slip toward 1.10x on a full pull, and below 1.00 if the appraiser’s rent comes in soft. That is a modeled case, not market data. When coverage falls short, the options are a smaller draw, a lower-leverage structure, or a sub-1.00 path through select lenders with terms adjusted.
DSCR compares rent to PITIA only. Clearing 1.00 is not the same as positive cash flow. Repairs, vacancy between contracts, management, utilities and furnishing replacement sit outside the calculation.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
Where Does the General Rule Break?
Several edge cases change the answer.
MTR versus STR classification. If a lender treats the file as short-term, it wants platform booking history. STR cash-out runs lower: 70% LTV, with about 12 months of hosting history and a 640+ score expected. A rent schedule form cannot support nightly income. 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. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Rent-by-room. Lenders generally do not credit rent-by-room income on a mid-term rental. Qualifying income comes from the property’s rent opinion.
2-4 units. The 1025 gives a rent opinion per unit. Some programs also want a separate STR projection per unit if any unit runs short-term.
Vacancy between contracts. A lease is not always required, but an unleased property can carry a pricing add-on with some lenders. Per Vivian’s travel-nurse housing guide, contracts typically run about 13 weeks, so gaps between them are normal. Underwrite your own vacancy buffer, because the DSCR calculation will not.
Tenant stipends. A nurse’s housing stipend depends on a tax home and per diem limits. It explains what a tenant can afford. It is not DSCR income and never enters the calculation.
Recently converted rentals. If the property was a long-term rental until recently, the appraiser still comps what the market supports. Conversion timing and title-recording dates both matter for seasoning.
Ineligible property types. Manufactured homes, log homes and barndominiums are not offered through these programs.
What Documents Does a Nurse-Rental File Need?
Clean documentation gives the lender fewer gaps to review. It does not guarantee approval.
- Appraisal with the rent schedule.
- Entity paperwork if the loan closes in an LLC: EIN, operating agreement and a personal guarantee, subject to lender program eligibility.
- Current lease and proof of payment.
- Mortgage statements confirming existing liabilities are paid.
- Contracts, agency or platform records showing how nurse stays turn over, and any addendum structure.
- Reserves documentation, showing liquid funds against the program’s requirement.
- Payoff information on the existing note, including prepayment terms.
The common failure is a lease that shows furnished income the appraisal never supported. The file then carries two rent numbers and no explanation. Put the lease, the rent schedule and a short note on which one governs in the same package.
How Do Short, Mid and Long-Term Rentals Compare?
| Factor | Long-term | Mid-term | Short-term |
|---|---|---|---|
| Qualifying income | Lease or market rent | Usually market rent or lease | Platform history |
| History expected | Lease | Lease | About 12 months hosting |
| Cash-out LTV | Up to 75% | Generally treated as lease-based, up to 75% | 70% |
Reading the table: a mid-term file that gets treated as lease-based inherits long-term leverage. A file treated as short-term inherits the STR tier. Which way the lender goes is the single biggest swing, so ask early.
If This, Then That
- Appraised rent comes in low: ask for appraisal reconsideration with recent in-area lease comps, or shrink the draw.
- Coverage thin on a full pull: take less cash, or look at a structure with interest-only periods through select lenders.
- Inside seasoning: wait for the 6 months, or check whether delayed financing applies after an all-cash purchase.
- Existing loan is the problem: a rate-and-term refinance, with no cash back at closing, may fit better.
- Lease shows furnished income above market: expect it to be discounted unless the program accepts it.
What Should You Do With the Cash?
Use it where it does not undercut coverage. Furnishing a new unit, funding the next down payment and rebuilding reserves are common uses. Each interacts with the ratio differently. Cash that buys a second rental adds income. Cash that sits against the original property only adds payment.
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. Qualification is subject to lender guidelines and this is not a commitment to lend.
Frequently Asked Questions
Can a mid-term rental get a DSCR cash-out refinance?
Yes, in many cases. Lenders do not have a separate mid-term category, so the file is placed as lease-based or short-term. A furnished stay of 30 days or more often reads as lease-based, which keeps standard-rental leverage of up to 75% LTV on a cash-out in play, subject to lender guidelines.
Will the lender count my furnished travel-nurse income?
Usually only up to what the appraiser’s market rent supports. Furnished premiums above that figure are often discounted or excluded. Some programs accept a documented furnished lease at face value, which is a reason to compare programs before choosing one.
Does the nurse’s housing stipend help me qualify?
No. The stipend shows what a tenant can afford, but it is not rental income to the lender. Only the property’s rent, as evidenced by the lease and the appraisal, enters the coverage calculation.
Why can I pass LTV and still be declined?
Because a larger loan raises the payment and lowers coverage. A full draw can drop a file below the 1.00 floor that select programs use. Pulling less cash, or using a structure adjusted for lower coverage through select lenders, may fix it.
How much cash will I actually receive?
Less than the gap between value and balance. The existing payoff, closing costs, required reserves and any prepayment charge come out first. Reserves commonly run about 6 months of PITIA, and about 9 months above $1,500,000.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (2025, 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 (Form 1007)
2. Fannie Mae Selling Guide B4-1.2-01
3. Vivian: How Travel Nurse Housing Stipends Work
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: Can You Get Approved for a DSCR Cash-Out Refinance With Six-Month Seasoning? · Does a DSCR Cash-Out Refinance Make Sense Instead of Selling the Rental? · DSCR Cash-Out Refinance vs Conventional Investor Loan on a Stabilized Rental Property
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.