The Quick Read: It depends on the lowest of three limits: the 75% LTV ceiling on a cash-out refinance of a standard investment rental, the loan size the appraiser’s market rent can support at the minimum DSCR of 1.00 (qualifying rent against PITIA), and the program’s loan-amount range, with payoff, closing costs, any prepayment charge, and reserves then subtracted. For a traveling nurse rental, the rent that counts is usually the appraiser’s market-rent opinion, not the furnished 13-week rate. Subject to lender guidelines, the check can come in well below what the equity math alone suggests.
- There is no fixed dollar amount. The check is the new loan minus the old payoff, costs, and any holdbacks.
- Rent, not equity, is often the binding limit, because a bigger loan means a bigger payment and thinner coverage.
- A furnished-rent premium rarely gets credited in full, so plan around the lower rent used for lender review.
- Clearing the coverage test is not the same as the property cash flowing.
What Actually Sets the Size of the Check?
Three limits compete, and the smallest one wins. The first is leverage. On a cash-out refinance of a standard investment rental, most programs we place files with cap the new loan at 75% of value, and about 6 months of ownership, measured from title recording, is the usual seasoning expectation. Short-term-rental collateral is lower, at 70% on a cash-out.
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.
The second is coverage. A DSCR loan qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The ratio is monthly rent divided by the full monthly obligation: principal, interest, taxes, insurance, and any HOA dues, which lenders call PITIA. The minimum DSCR is 1.00. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Stronger ratios generally open better leverage and pricing.
The third is the loan-amount range. Standard programs run up to $3,000,000, and balances below the standard-program minimum route through select lenders in the network.
Once the new loan is sized, the lender subtracts what has to be paid or held. That list covers:
- the payoff of the existing mortgage,
- closing costs,
- any prepayment charge on the loan being replaced,
- reserves, which commonly run about 6 months of PITIA and step up to about 9 months on loans above $1,500,000.
Credit also shapes the leverage you get. The tiers sit at 620, 660, 680, and 700, with 620 the floor in parts of the network. The strongest leverage tends to want a score near the top tier.
What Does the Math Look Like?
Run it with index numbers instead of dollars, so the structure stays clear. These inputs are modeled assumptions, not market data.
Say the property appraises at 100 units and the existing loan is 50 units. At the 75% cash-out ceiling on a standard investment rental, the maximum new loan is 75 units. Assume costs and holdbacks total 4 units. Cash before the coverage test is 75 minus 50 minus 4, which is 21 units. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Then the coverage test runs on the bigger payment. Suppose the appraiser’s market rent supports a loan of only 68 units at the coverage floor. The loan shrinks to 68, and the check falls to 68 minus 50 minus 4, which is 14 units. The leverage cap was never the problem. The rent was.
Reserves sit on top of this. Depending on the file, they are proven from other assets or kept out of the proceeds. Either way, they have to exist.
Now take the same property with a larger existing loan. The leverage cap leaves less room, and the check can drop to zero even when the rent is strong. In that case a refinance returns no cash and is classed differently, as a rate-and-term refinance, which sits on a higher ceiling (85% on a rate-and-term refinance of an investment property).
Why Does the Appraiser’s Rent Matter More Than the Nurse’s Rate?
Because the appraisal does two jobs. It sets value, which drives LTV. It also sets market rent, which drives the coverage ratio. On a one-unit property, the rent opinion usually comes from the Single-Family Comparable Rent Schedule, known as Form 1007 at Fannie Mae and Form 1000 at Freddie Mac. The grid compares leased properties and adjusts for items such as lease dates, utilities, and furniture. For two-to-four-unit properties, the equivalent analysis sits on the Form 1025 income report.
DSCR loans are not agency products. The form is useful here only for how it defines rent. Fannie Mae’s appraiser guidance says the 1007 asks for monthly market rent, supported by comparable properties leased monthly. It also says an appraiser should not take nightly short-term rates and multiply by 30, and that the form cannot estimate a nightly fee.
That has a direct consequence for a nurse rental. Nurses typically rent on 13-week contract assignments and expect a fully furnished home. A furnished home can earn more than an unfurnished one. A property manager’s blog puts the premium at 20% to 30%, though that is a marketing estimate and not an underwriting rule. What the appraiser credits is the monthly market rent supported by comparable leases. The premium you collect and the premium the file counts can be very different numbers.
How Does a Mid-Term Nurse Rental Get Classified?
Lease length does most of the sorting. A furnished home leased to a nurse for a month or longer is generally treated as a mid-term rental, while a nightly rental is a short-term rental. Many programs draw the line at about a month, though the exact collateral class is a lender-guideline matter, so confirm it before you price the deal.
The class matters because it changes leverage and the evidence the file needs. A standard long-term or mid-term file is sized on the 1007 market rent, with a 75% cash-out ceiling. A short-term-rental file looks at hosting history, and short-term-rental collateral has its own ceilings and requirements. Across the network, short-term-rental cash-outs run at 70% LTV, with a score of 640 or higher and about 12 months of hosting history expected, and coverage is tested at 1.00. A nurse home leased on 13-week contracts usually does not fit that profile, so do not plan around it.
Here is how one property can look under three rent treatments.
| Treatment | Rent the file leans on | Cash-out LTV ceiling |
|---|---|---|
| Long-term lease | Appraiser’s market rent | 75% (standard rental) |
| Mid-term nurse contract | Appraiser’s market rent, furnished comps | 75% (standard rental) |
| Short-term rental | Hosting history, then appraisal | 70% (short-term-rental collateral) |
The middle row is where investors get surprised. The contract rate is higher, but the loan is sized as if the home rented monthly on the open market. Rent-by-room income is generally not credited either. The appraiser’s opinion governs.
Why Is the Check Smaller Than the LTV Math Suggests?
Three reasons stack together. The first is deductions. Payoff, costs, prepayment charges, and reserves all come out of the proceeds, so the net is always below the gross. The second is that cash-out leverage is lower than purchase leverage. Most purchases land at 75% to 80% LTV, with select programs reaching 85% at around a 700 score, while a cash-out on a standard rental tops out near 75%. The third is payment growth. Pulling cash raises the loan, which raises PITIA, which lowers coverage. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
That last point is why the coverage test often binds before the leverage cap does. If the market rent is modest, the loan shrinks until the ratio clears the floor. A higher floor on your file means a smaller loan for the same rent. If the ratio lands under 1.00, a select-lender path exists with leverage and terms adjusted, but it generally means less cash for you.
Bigger is not always better. A smaller pull keeps coverage healthier and leaves cushion when a contract gap hits. Nurse rentals have gaps between assignments, and the loan payment keeps running through them.
Clearing 1.00 also does not mean the property cash flows. DSCR compares rent to PITIA only. Furnishing, utilities, turnover, cleaning, management, vacancy between contracts, and capital repairs all sit outside the calculation. A furnished nurse rental carries more of those costs than a standard unfurnished lease, so the ratio is a lending test and not a profit forecast.
What About Seasoning, Lease Gaps, and Other Edge Cases?
Seasoning. Seasoning is the waiting period between buying a property and refinancing it for cash. Across most of the network the expectation is about 6 months, counted from title recording. Inside that window, the value basis is often cost plus documented improvements instead of a fresh appraisal. Lendmire’s piece How Much Cash Comes Out of a Short-Term Rental Cash-Out Refinance Within Seasoning? covers that basis in more detail. Improvements may support a higher appraised value, depending on comps and underwriter review. They do not add a guaranteed amount.
A thin or expiring lease. A lease that ends soon, or a vacant home between assignments, weakens the rent evidence. Lenders weigh the appraiser’s market rent against what is in place, and a large variance between rent history and the 1007 gets flagged. If the home is empty when you apply, expect more questions.
A low appraisal rent. Appraised rent can come in below what you expected. Your options are to supply stronger monthly furnished comps, the lease, and the scope of improvements ahead of the appraisal, to take a smaller loan, or to ask a select lender about a sub-1.00 path. No-ratio structures also exist, available only through select lenders, generally for borrowers who already own a primary residence. Credit and equity usually matter more on those files.
Property type. Manufactured homes (single- and double-wide), log homes, and barndominiums are not offered in the network’s DSCR programs, so a nurse rental in one of those will not work here.
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 your question is how a property qualifies without leaning on your own paystubs, Lendmire’s article How Much Cash Comes Out of a Short-Term Rental Cash-Out Refinance Without Personal Income? walks through that side of the file.
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.
Key Terms Defined
Cash-out refinance: a new loan that pays off the old mortgage and gives you the difference in cash.
DSCR (debt service coverage ratio): monthly rent divided by the full monthly payment, used to test whether the property’s income covers its debt.
PITIA: principal, interest, taxes, insurance, and association dues, which together make up the monthly obligation the rent has to cover.
LTV (loan-to-value): the loan amount as a percentage of the property’s value.
Seasoning: the time you must own a property before a lender will refinance it for cash.
Market rent: the monthly rent an appraiser concludes the home would earn from comparable leases, which is what the file usually sizes on.
Holdback: money kept from proceeds or proven in reserve instead of paid out to you.
Mid-term rental: a furnished rental leased for 30 days or longer, such as a 13-week nurse contract.
Common Mistakes Before You Apply
- Assuming the nurse rate sets the loan. The appraiser’s market rent usually does.
- Treating LTV math as your check. Costs, payoff, prepayment charges, and reserves reduce it.
- Maxing the pull. A larger loan lowers coverage and thins your cushion for contract gaps.
- Skipping the appraisal prep. Monthly furnished comps and the lease give the appraiser something to work with.
- Assuming a different coverage benchmark applies. Residential DSCR programs use their own floors, not the commercial convention of net operating income over debt service.
What Should You Gather First?
A typical file includes:
- the appraisal with the market-rent schedule (the 1025 income report for two-to-four units),
- the current lease or the mid-term contracts,
- a payoff statement for the existing loan,
- the insurance policy,
- entity documents, if the property sits in an LLC (subject to lender program eligibility),
- proof of reserves.
Rent history from the contracts is also useful, since lenders may compare it against the appraiser’s figure.
Frequently Asked Questions
Will a lender use my furnished 13-week nurse rate to size the loan?
Usually not in full. The rent used for lender review is normally the appraiser’s market-rent opinion, based on comparable monthly leases. Your actual contract income can support the story, but the loan is sized on the credited number.
Does a 13-week contract make my property a short-term rental?
Generally no. Lease length is the main dividing line, and many programs draw it at a set threshold between nightly stays and longer leases. A nightly rental is a short-term rental, while a furnished 13-week lease is usually treated as a mid-term rental. Your lender confirms the class.
How long do I have to own the property before cashing out?
About 6 months from title recording is the common expectation across most of the network. Inside that window, the value basis is often cost plus documented improvements. Select lenders vary, so your file may differ.
Can I take the maximum cash and still qualify?
Only if the rent covers the larger payment at the coverage floor. Pulling more cash raises the payment and lowers the ratio, so the loan shrinks until coverage clears. Taking less than the maximum keeps the ratio healthier.
Does clearing 1.00 mean my nurse rental cash flows?
No. The ratio compares rent to the PITIA payment only. Furnishing, utilities, turnover, vacancy between assignments, and repairs all sit outside it.
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. As a mortgage broker with investor loan programs in 41 markets, including Washington, D.C., Lendmire arranges financing through select lenders in its wholesale network. For the full framework behind these numbers, start with the complete DSCR loans guide. Programs change, approval is not guaranteed, and nothing here is a commitment to lend.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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. Fannie Mae Appraiser Update
3. TenantCloud: Rent to Traveling Nurses
4. Pure Home River: Renting to Traveling Nurses
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 Can You Borrow With a DSCR Cash-Out Refinance on a Rental That Needs Repairs? · How Much Can You Borrow With a DSCR Cash-Out Refinance on a Multi-Unit Short-Term Rental? · DSCR Cash-Out Refinance Checklist When Choosing Between DSCR and Conventional on a Rental
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
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.