The Quick Read: Yes. You can, as long as the property passes three tests: enough equity, enough ownership time, and rent that covers the new payment. Qualification runs primarily on the property’s rental income, subject to lender guidelines, not on your traditional personal-income documentation.
- Cash-out leverage tops out around 75% LTV on a standard rental and around 70% on short-term-rental collateral.
- Most programs expect about 6 months of ownership, measured from title recording.
- A 1.00 coverage ratio is where select programs start. Stronger coverage opens better terms.
- Short-term-rental files typically want a 640+ score and about 12 months of hosting history.
- Manufactured homes, log homes and barndominiums are not offered in these programs.
North Myrtle Beach is not a special category for DSCR lending. The city matters in two ways: whether your rental income can be counted, and which documents the lender asks for.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 29, 2026
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As of Oct 29, 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.
What Is a Cash-Out Refinance on a Rental?
A cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash. The new loan pays off the old balance first. What is left, after costs, comes to you.
On a rental, the lender looks at the property, not your paycheck. DSCR stands for debt service coverage ratio. It compares the property’s monthly rent to its monthly housing payment. That payment is PITIA: principal, interest, taxes, insurance and any association dues.
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 want the full background, Lendmire’s complete DSCR loans guide covers it.
How Do Lenders Qualify a North Myrtle Beach Rental for Cash-Out?
Lenders run two tests, and the tighter one sets your check. One test is value (LTV). The other is rent (coverage). Across the wholesale network Lendmire places files with, the pattern is consistent.
The value test. Loan-to-value, or LTV, is the new loan divided by the appraised value. Cash-out on a standard investment rental tops out around 75% LTV. Short-term-rental collateral is lower, around 70% on a cash-out. Your existing balance comes out of that room first. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
The ownership test. Seasoning is the waiting period between buying and cashing out. Most programs want about 6 months from title recording. Inside that window, loans are commonly sized on what you paid plus documented improvements, not on a fresh appraisal. Seasoning is a program rule, not a federal one, so it varies by lender.
The rent test. Many select programs start at 1.00 coverage. That means rent just covers the full payment. Stronger ratios usually bring better pricing and leverage. If your property falls below 1.00, a separate path through select lenders in the network takes coverage below 1.00, with leverage and terms adjusted.
The borrower test. A 620 credit score is the floor in parts of the network. Most programs want around 660. A 700+ score unlocks the strongest leverage tiers. Reserves commonly run about 6 months of PITIA, stepping up to about 9 months above $1,500,000. Standard programs reach up to $3,000,000.
Here is how a cash-out compares with a refinance that returns no cash.
| Factor | Cash-out refinance | Rate-and-term refinance |
|---|---|---|
| What you get | Cash at closing | No cash back |
| Max LTV (investment property) | About 75% | Up to 85% on select programs |
| Ownership time | About 6 months | Little or none |
| Best for | Funding the next purchase | Changing the loan structure |
Program details change, and every file is underwritten individually. None of this is a commitment to lend.
Does a Short-Term Rental Qualify Differently Than a Long-Term One?
Yes. A vacation rental can qualify, but the lender needs proof of its income, and the caps are tighter. Short-term-rental cash-out tops out around 70% LTV. Expect a 640+ score, about 12 months of hosting history, and a 1.00 coverage floor on refinances. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
That history matters because a beach rental earns most of its money in peak months. A lender needs to see a full cycle, including the slow season. The two income routes look like this.
| Income route | What the lender wants | Main weakness |
|---|---|---|
| Long-term lease | A signed lease and/or appraiser rent schedule | Understates peak-season income |
| Short-term history | About 12 months of platform or manager statements | Seasonal swings pull the average down |
| Appraiser rent survey | The 1007 rent schedule | Often well below real nightly income |
The Fannie Mae Form 1007 is the standard single-family rent schedule appraisers attach to a report. It is named here for contrast only, because DSCR loans are not agency products. Appraisers use it to estimate market rent, and it was built for ordinary leases, not nightly-rate stays. A 2-4 unit property uses the equivalent form, Form 1025.
If your listing income is much stronger than the appraiser’s rent figure, the documented history is usually what closes the gap. Keep clean statements from your platform, your manager or your bank deposits.
What Should You Check Locally Before You Apply?
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. That is the part of North Myrtle Beach that matters most to a lender.
The city’s rental property quick reference says rentals generally need a city business license, and that licenses do not transfer on a sale. A lender can only count income from a rental that operates legally. A lapsed or missing license can hurt both your income figure and your eligibility.
Local requirements for short-term rentals have also been under discussion. Check with the city’s business license office and your association instead of relying on a blog post. Also remember that neighboring Myrtle Beach is a separate municipality with its own rules. Do not assume what applies there applies here.
A pattern shows up often on beach-market files. Coverage looks fine on last year’s numbers, then the insurance quote changes and the ratio moves. Get a current insurance quote in hand before you apply, since PITIA includes it.
Which Property Types Work in North Myrtle Beach?
Single-family homes, townhomes, condos and 2-4 unit buildings are all common DSCR collateral. The surprises come from condo projects and associations.
| Property type | Eligibility note | Watch-out |
|---|---|---|
| Single-family rental | Standard collateral | Seasonal income swings |
| Condo or townhome | Common, but varies by project and lender | Association rental limits |
| Condo-hotel or non-warrantable condo | Lender-dependent | Fewer lenders will take it |
| 2-4 unit building | Standard, with Form 1025 rent schedule | Per-unit lease documents |
| Manufactured, log, barndominium | Not offered | Outside these programs |
Associations matter because they can limit how often you rent or for how long. Your lender will want to see the association’s rules and its project details. If your unit sits in a resort-style building with a rental pool, tell your broker early. Some lenders avoid those structures entirely, and a few in the network handle them with adjusted terms.
You can also hold the property in an LLC, subject to lender program eligibility. The documents change, since the lender will want the entity paperwork, but the loan is still a business-purpose DSCR loan. A rental you also use personally during the year needs an honest occupancy answer. A DSCR loan is for investment property only, not a primary residence.
What Does a Worked Example Look Like?
Run the numbers on a percentage basis. These are modeled assumptions, not market data, and they show the logic, not an offer.
Say a long-term rental appraises at some value, and your current loan balance equals 60% of that value. Rent covering the new payment at roughly 1.25x clears the coverage test with room to spare. Equity is the limit here. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Now take the same balance on a short-term rental. The 70% cap leaves 10 points of value. That is a smaller check, even though the property is identical.
Finally, picture a high-value beach condo where documented rent covers the payment at about 0.95x. The equity is there, but the rent is not. That file is the exception. Programs below 1.00 are available through select lenders in the network, with leverage and terms adjusted, so the cash-out amount may come in lower. Approval depends on lender guidelines, credit and the property review.
This is why a high-value property with weak documented income can produce a smaller check than its equity suggests. Cash-out is limited by rent, not just equity.
When Does a Cash-Out Not Make Sense?
Pulling equity costs you something, so test the deal before you commit. A few situations deserve a hard look.
- The new payment strains the property. More debt means higher PITIA. If coverage barely clears 1.00, one bad season can put the rental under water.
- Clearing 1.00 is not positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities and capex sit outside the calculation.
- You have no use for the cash. Money that sits idle still carries a payment. The best uses are a down payment on the next acquisition, improvements that may support a higher appraised value (depending on comps and underwriter review), or reserves.
- You bought it recently. Inside the seasoning window, you may be sized on cost, which can shrink the check.
Some investors plan to recycle equity from one beach rental into the next purchase. That strategy works when each property carries its own payment.
A larger down payment can lower the monthly payment and lift your 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.
Key Terms Defined
DSCR (debt service coverage ratio): The property’s monthly rent divided by its monthly housing payment.
LTV (loan-to-value): The loan amount as a percentage of the property’s appraised value.
PITIA: Principal, interest, taxes, insurance and any association dues. It is the full monthly payment in the coverage calculation.
Seasoning: The waiting period a lender wants between buying a property and cashing out equity.
Cash-out refinance: A new, larger loan that pays off the old one and returns the difference to you.
Form 1007: The appraiser’s rent schedule for a single-family rental.
Frequently Asked Questions
Can I get a cash-out refinance on an Airbnb in North Myrtle Beach?
Yes, on short-term-rental collateral, which tops out around 70% LTV on a cash-out. Expect a 640+ score and about 12 months of hosting history. Your income is documented through platform or manager statements, and the rental should operate legally under local rules and any association rules. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
How long do I need to own the property first?
Most programs want about 6 months of ownership, measured from title recording. Inside that window, loans are commonly sized on cost plus documented improvements. Seasoning is a program rule, so it varies by lender, and a broker can match you to the right one.
Do I need tax returns or W-2s?
No. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. You will still need to document the rent, your credit and your reserves. Entity paperwork is added if you hold the property in an LLC.
What if my coverage ratio is below 1.00?
A separate path through select lenders in the network takes coverage below 1.00, with leverage and terms adjusted. You can also take a smaller cash-out, add rent through a lease or documented history, or improve the property’s income before you apply.
Can I use FHA or VA for this?
Generally no. Those programs limit cash-out to primary residences, so a pure rental moves to a DSCR program instead.
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. Lendmire is a mortgage broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. An illustrative calculator on the site can give you a rough estimate before you talk to anyone.
A North Myrtle Beach rental earns its cash-out the same way any rental does: documented rent, a clean license history and equity above the 75% line.
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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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. Fannie Mae Form 1007, Single-Family Comparable Rent Schedule
2. City of North Myrtle Beach, Rental Property Quick Reference
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: Best Short-Term Rental Cash-Out Refinance Program to Go Fixed · Short-Term Rental Cash-Out Refinance Requirements to Renovate a Condo · Short-Term Rental Cash-Out Refinance Options After Buying a Property With Cash
Guides: Investment Property Cash-Out Refinance in North Myrtle Beach, SC · Investment Property Cash-Out Refinance in South Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.