The Quick Read: A 660 score can work on either route, but the two routes ask for different things. The long-term rental loan is usually the easier file to build, because a lease or an appraiser’s rent schedule sets the income. The short-term route can make sense when the property already has a documented hosting record and strong coverage.
- Long-term cash-out refinances top out around 75% LTV across most of the network.
- Short-term rental cash-out tops out at 70% LTV, and the program expects a 640+ score.
- A DSCR of 1.00 is where select programs start. It is not a cash-flow guarantee.
- A 700+ score opens the strongest leverage tiers. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
The honest answer comes down to who you are. The long-term loan fits an owner with a lease in place, or a property without a hosting record. It also fits anyone who wants the most equity out of the deal. The short-term cash-out fits an operator with a year of bookings and enough coverage to carry a lower leverage cap. Both qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Your score is a separate gate, and at 660 you clear it on both routes.
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.
For the full picture of how these loans work, see Lendmire’s complete DSCR loans guide.
Side-by-Side
The table below shows what the wholesale network’s programs generally look like for each route. Treat every cell as a typical range, subject to lender guidelines and individual file review.
| Factor | Short-Term Rental Cash-Out | Long-Term Rental Cash-Out |
|---|---|---|
| Income evidence | Hosting history or market projection | Lease or appraiser rent schedule |
| Max cash-out LTV | Up to 70% | Around 75% |
| Typical credit minimum | 640+ | Around 660 is common; 620 in parts of network |
| Hosting experience | About 12 months expected | Not required |
| DSCR floor | 1.00 on refinance | 1.00 where select programs start |
| Reserves | Vary by lender, leverage, loan size | Commonly around 6 months of PITIA |
| Seasoning | Varies; ownership history reviewed | About 6 months is common |
Neither column is a menu from a single lender. Across the network, individual programs differ, and a few select lenders loosen or tighten particular items. Every file is underwritten individually.
How Each Route Counts Income
Both loans divide rental income by PITIA, which is principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.00 means rent equals that full monthly obligation. Stronger ratios open better pricing and leverage. Some select lenders in the network go below 1.00, with leverage and terms adjusted, but that is a separate path.
The long-term route is simple. Appraisers complete a market rent schedule, known as a 1007, and the lender compares it with the payment. A signed lease can support the same number. The full mechanics are covered in Lendmire’s complete guide to DSCR loans.
The short-term route is heavier. Lenders look first for historical income from platform statements or bank deposits. Without history, some programs use a market projection or an appraiser’s short-term rent analysis. Many lenders also trim short-term income to allow for higher operating costs, and a trailing snapshot taken at peak season can overstate what the property earns in a slow quarter. That is why a high gross number does not always win.
One caution applies to both. Clearing 1.00 is not the same as positive cash flow. DSCR counts rent against PITIA only. Repairs, vacancy, management, utilities, and capex sit outside the calculation.
What a 660 Score Changes
A 660 score is a borrower-level test. It sits next to the property’s coverage test, and each can limit the other. On a long-term file, 660 is where most programs in the network want you to be. A 620 floor exists in parts of the network, so you are comfortably above the bottom. You are also below the 700+ tier that unlocks the strongest leverage.
On a short-term file, the program expects a 640+ score, so 660 clears it. The practical effect shows up elsewhere. At a middling score, a program may pair you with lower leverage or tighter terms. Strong coverage and healthy reserves can help offset that, depending on the lender. Still, a larger down payment never erases leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
If an LLC holds title, the guarantor’s credit is still reviewed, so the 660 matters either way, subject to lender program eligibility.
When a Short-Term Rental Cash-Out Is the Better Fit
Pick this route when the hosting record is the strongest evidence you have. Consider a property that has run as a vacation rental for a full year, with clean platform statements. Its gross income may sit well above what a lease would show. If that income still produces solid coverage after the lender’s adjustments, the short-term loan can support the file.
It also fits an owner who already has hosting experience, which can be documented from the subject property. Be realistic about the tradeoff. Cash-out here tops out at 70% LTV on short-term-rental collateral, versus around 75% on a standard long-term rental. On the same property value, that is less equity to pull out.
Check local rules before you lean on projected 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. A permit problem can sink the income the whole file depends on.
When a Long-Term Rental Loan Is the Better Fit
Choose this route when a lease can carry the file. It fits a property with under 12 months of hosting, a property converting from a short-term rental to a lease, or a market where local rules are unsettled. It also fits an investor who wants the largest cash-out the network allows, because the cap is around 75% LTV on a standard rental. Every figure here varies by lender and program.
For a mid-tier score, the documentation burden matters too. A lease and a 1007 rent schedule are easier to assemble than a year of platform records. The seasoning expectation is about six months of ownership on most programs. Reserves commonly run around six months of PITIA, though conservative rate-term files at modest leverage under $1,500,000 can see reserves waived. Loans of $1,500,000 or more typically step up to about nine months.
The downside is simple. If your property earns far more as a short-term rental, a lease-based number leaves that income on the table. You may qualify for less cash-out than the property’s real earnings would suggest, or you may simply not need the extra.
Does the Property Qualify at All?
Property type can decide the question before income does. DSCR on manufactured homes (single- and double-wide), log homes, and barndominiums is not offered in the network. Loan sizes run up to $3,000,000 on standard programs (balances below the standard-program minimum route through select lenders), and above $2,500,000 the network generally holds to 30-year fixed structures. Extended 40-year terms and interest-only periods are available through select lenders, and ARM structures exist for investors who want them.
Business-Purpose Basics
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. The CFPB’s Truth in Lending materials treat credit to acquire or improve non-owner-occupied rental property as business-purpose credit. The FDIC’s examination manual lists factors for judging purpose, including how much income the property produces. Living in the property yourself can break that treatment, so a DSCR loan is not the tool for a home you plan to occupy.
Balanced Verdict
At a 660 score, the question is not which loan accepts you, since both do. The question is which income story your property tells best.
Choose the short-term cash-out if you have about a year of clean hosting records, coverage that holds after adjustments, and a market where the rules are clear. Accept the 70% cap as the cost. Choose the long-term loan if a lease carries the file, your history is short, or you want the higher 75% cap. Many investors run both scenarios on the same property before deciding.
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 broker arranging financing through select lenders in its wholesale network, covering 41 markets, including Washington, D.C. Programs change, and nothing here is a commitment to lend. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Can I get a cash-out refinance on a short-term rental with a 660 score?
Usually yes. The short-term program expects a 640+ score, so 660 clears the floor. Leverage tops out at 70% LTV on short-term-rental collateral, and the file also needs about 12 months of hosting history and coverage of at least 1.00, subject to lender guidelines.
Which route lets me take out more cash?
The long-term route generally does. Cash-out on a standard rental tops out around 75% LTV, while short-term-rental collateral tops out at 70%. Actual proceeds depend on the appraised value, existing loan balance, coverage, and the lender.
Does a DSCR above 1.00 mean the property cash flows?
No. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capex are outside the calculation, so a property can clear the ratio and still run tight after real operating costs.
What if my hosting history is under 12 months?
The short-term program expects about 12 months, so a shorter record weakens that route. Some owners underwrite on a lease or market rent schedule until history builds. Terms vary by program, and each file is reviewed individually.
Does an LLC change the credit requirement?
Not in a way that removes it. Title can sit in an LLC, subject to program terms, but the guarantor’s credit is still reviewed. A 660 score still matters either way.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage focused on DSCR investor financing, helping arrange programs through wholesale and investor-lending channels in 41 markets, including Washington, D.C. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire was named a Scotsman Guide Top Mortgage Workplace in both 2025 and 2026.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
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. CFPB – Truth in Lending Act materials
2. FDIC – Consumer Compliance Manual: Truth in Lending Act
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 a Short-Term Rental Cash-Out on a Condo You Use for the Winter? · How Much a Cash Buyer Can Pull Out in a Rental Cash-Out Refinance? · How Much Cash-Out Refinance a Lender Allows on an Unseasoned 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
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.