The Quick Read: The providers that write this loan are DSCR lenders, and which one fits depends on the property, the hosting history, the borrower’s documents, and the leverage needed. A foreign national qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
- Short-term rental cash-out leverage tops out around 70% LTV on STR collateral, subject to lender guidelines.
- Expect a 640+ credit score and about 12 months of hosting history.
- Coverage of 1.00 is the floor on STR refinances. Higher coverage opens better terms.
- The appraisal’s rent schedule does not prove nightly income, so the income evidence package matters.
- Reserves, funds sourcing, and a legal right to operate as an STR often decide the file.
How Does a Foreign National STR Cash-Out Work?
A foreign national STR cash-out is a business-purpose DSCR refinance on a US vacation or short-term rental. The lender compares the property’s rental income to its full monthly obligation: principal, interest, taxes, insurance, and association dues. The borrower’s personal income is not the test.
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 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.
Clearing 1.00 is a financing test. It is not a profit forecast. Repairs, vacancy, management fees, utilities, and capex sit outside the calculation, so a file can pass and still produce thin real cash flow. Lendmire’s complete DSCR loans guide covers the ratio in full.
Why There Is No Honest “Top Providers” List
Naming companies in a ranked list would be a sales pitch, not guidance, and the right answer depends on the file. Each lender’s guidelines differ on STR income treatment, leverage, reserves, and property type. A lender that suits a borrower with 14 months of hosting history can be wrong for one with four.
A broker sees many guidelines side by side. Programs in the network can treat STR collateral more tightly than a standard long-term rental. Some lenders use the greater of documented STR income and market rent. Stricter ones use the lower of the two. That single choice can change the loan size on the same address, so it should be settled before the appraisal is ordered.
The right lenders for a given file depend on the property, the hosting record, the credit profile, and the documents the borrower can produce from abroad.
The Program Numbers That Matter
These are typical ranges from select lenders in the network. Each file is underwritten individually.
| Factor | Short-term rental |
|---|---|
| Purchase leverage | Up to 75% LTV |
| Cash-out leverage | Up to 70% LTV on STR collateral |
| Credit score | 640 minimum |
| Coverage floor | 1.00 on purchase and on refinance on standard programs; select lenders offer separate sub-1.00 paths |
| Hosting history | About 12 months expected |
| Loan size | Up to $3,000,000 on standard programs |
Standard long-term rentals reach about 75% LTV on a cash-out, and about 6 months of seasoning is the common expectation. STR collateral sits in a lower tier. Coverage below 1.00 is available through select lenders in the network, with leverage and terms adjusted. That is a separate path, not a lower floor on the same program. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Reserves vary by lender, leverage, and loan size. Around 6 months of PITIA is common. Larger balances typically step up. A larger down payment or more equity lowers the payment and can lift the ratio, but it never erases credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
How Underwriting Treats STR Income, Step by Step
1. Eligibility screen. The property must be investment-only and a legal STR. Manufactured homes, log homes, and barndominiums are not offered in the network’s DSCR programs.
2. Identity and funds. Expect a passport, visa or entry documentation, and bank or brokerage statements. Foreign funds may need translation, currency conversion, and a paper trail showing where they came from.
3. Credit. The network’s STR programs look for 640 or higher. Some foreign national programs in the broader market substitute a foreign credit report or reference letters for a US score. Confirm what the specific lender accepts before applying.
4. Pick the income evidence. An STR refinance usually relies on operating history: 12 months of platform payouts, bank deposits, or a property manager’s statement. Appraiser STR analyses and market projections are more common on purchases.
5. Apply the haircut. Lenders reduce gross STR income to reflect expenses before dividing by the payment. The size of that reduction varies by lender and is a major driver of loan size.
6. Calculate coverage. Counted income divided by PITIA gives the ratio. Rolling closing costs into the loan raises the balance and lowers coverage.
7. Appraisal. One report supplies two limits. Value sets the LTV ceiling. Rent sets the coverage ceiling. The lower one binds the loan amount.
8. Title, insurance, and reserves. Entity documents, a clean title, an insurance quote that covers STR use, and sourced reserves complete the file.
The Appraisal Does Not Prove Airbnb Income
Many borrowers assume the appraisal validates their booking income. It does not. The standard rent schedule, Form 1007 for one-unit properties and Form 1025 for two-to-four units, is built on monthly lease comparables. Fannie Mae’s chief appraiser said on the Appraisal Update podcast that Form 1007 cannot be used to estimate the nightly fee for an STR. That is an appraisal-form point, not a DSCR program rule, but it explains why the income package carries so much weight.
The related mistake is multiplying the nightly rate by 30 and calling it monthly rent. Occupancy gaps, platform fees, and cleaning costs make that figure unreliable, and lenders do not underwrite it.
When history is short, a lender may fall back to market rent from the appraisal. That figure can sit well below real STR income and fail the coverage test even when bookings are strong. The options are a program that does not require STR history, a smaller cash-out, or more time hosting.
Structures and Variations
- Delayed-financing style refinances. A property bought with cash can sometimes be refinanced after purchase, depending on the program and seasoning rules. Confirm the lender’s treatment before relying on it.
- Term options. The spine is the 30-year fixed. Extended terms and interest-only periods are available through select lenders. ARM structures exist for investors who want them. Above $2,500,000, the network generally holds to 30-year fixed structures.
- Leverage versus coverage. Cash-out trades coverage for liquidity. A bigger balance lowers the ratio, so pulling the maximum can fail a test that a smaller amount would pass.
- Cash-out proceeds are not income. They do not enter the numerator.
Where the General Rule Breaks
Short hosting history. The expected 12 months of history is a program norm, not a universal rule. Shorter history narrows the pool of lenders.
Condotels and non-warrantable condos. These typically need extra review. HOA questionnaire completeness and condo certification can stall a file regardless of coverage.
Legality of STR use. A property that cannot legally operate as an STR may not get that income counted. 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.
ITIN versus foreign national. An ITIN program generally leans on US tax filings. A foreign national program generally does not. They are different products, and a file should be routed to the right one up front.
Property type. Two-to-four-unit STRs use the 1025 form and a different income analysis than a single-family home.
What the Investor Decision Looks Like
Run two tests before applying. First, the equity test: appraised value times the STR cash-out ceiling, less the existing balance, gives the room for proceeds, before closing costs and reserves. Second, the coverage test: counted STR income against the new, larger payment. Pull only as much as clears both.
Picture an investor who bought a coastal condo with cash and has 14 months of platform payouts. The documented income package supports a refinance. The same investor with four months of hosting may find the file falls back to market rent, and the better move is waiting or taking less cash.
The strongest preparation is boring: entity papers, translated and sourced statements, a clean payout history, and an insurance quote that names STR use. Reserves can sit in foreign accounts at some programs, but they must be documented.
Exit tax friction exists for foreign owners. The IRS notes in Publication 519 that a nonresident alien’s rental income is generally taxed at 30% or a lower treaty rate. Tax treatment varies; consult a qualified professional.
Key Terms Defined
DSCR: the property’s rental income divided by its full monthly obligation (principal, interest, taxes, insurance, and dues).
PITIA: principal, interest, taxes, insurance, and association dues, the denominator in the ratio.
Seasoning: the minimum ownership period before cash-out is available on a recent purchase.
Form 1007 / Form 1025: appraisal rent schedules for one-unit and two-to-four-unit properties.
Foreign national loan: a loan to a non-US borrower, often with no US credit file, qualified on the property’s income.
Haircut: the reduction a lender applies to gross STR income before the ratio is calculated.
Frequently Asked Questions
Can a foreign national take cash out of a short-term rental?
Yes, through select lenders in the network, typically up to about 70% LTV on STR collateral. The file needs a 640+ score, roughly 12 months of hosting history, and coverage of at least 1.00. Eligibility depends on lender guidelines, credit review, and property review.
Does the appraisal prove my STR income?
No. The rent schedule reflects monthly lease comparables. Lenders look to platform payouts, bank deposits, or a manager’s statement for operating history, and some use the lower of that figure and market rent.
Is a US credit file required?
It depends on the program. The network’s STR programs look for a 640+ score. Some foreign national programs elsewhere accept foreign credit reports or reference letters, so confirm what a given lender accepts before applying.
Can I use an LLC?
Many programs allow closing in a US LLC, subject to lender program eligibility. Entity documents are a common source of delay, so assemble them early.
Can I refinance a property I bought with cash?
Sometimes. Delayed-financing style structures exist, and the standard cash-out expectation is about 6 months of seasoning. Rules vary by program, so the lender’s treatment should be confirmed first.
How to Find the Right Fit
The right lender depends on the property type, the hosting record, the documents available from abroad, and the leverage needed. If you are 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 change, and every file is underwritten individually. This is not a commitment to lend.
About Lendmire
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that arranges investor loans through select wholesale lenders across 41 markets, including Washington, D.C. Qualification centers primarily on property-level rental income covering the payment, subject to lender guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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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. podcasts.apple.com: Id1452887106
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: Top DSCR Cash-Out Refinance Providers at the Highest LTV on a Rental · Top Portfolio DSCR Cash-Out Refinance Providers for a Foreign National Investor · Top Short-Term Rental Cash-Out Refinance Providers When the Appraisal Comes in Low
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.