The Quick Read: No single provider owns the highest leverage on a short-term rental cash-out, because each lender sets its own ceiling and the property’s rental coverage often limits the loan before the LTV cap does. Across the wholesale network Lendmire works with, short-term-rental cash-out tops out around 70% LTV, compared with about 75% on standard long-term rentals. The best program for your situation depends on your hosting history, credit, documentation, and how much rent the lender will count.
- Expect a 640+ credit score and about 12 months of hosting history on most files.
- Coverage of 1.00 is where select short-term-rental refinance programs start.
- Rent coverage, not equity, is often what limits the loan.
You asked for a ranking of providers. This article does not name or rank lenders, and that is deliberate. Lendmire is a mortgage broker that works with a network of wholesale lenders, and the right fit depends on the file. What follows is how these lenders think, where the leverage ceiling comes from, and how to land in the highest tier your property can support. Investor loan programs run across 41 markets, including Washington, D.C. Nothing here is a commitment to lend.
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.
Key Terms Defined
LTV (loan-to-value) is the loan amount divided by the property’s appraised value. A 70% LTV means the new loan equals 70% of what the home appraises for. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
DSCR (debt service coverage ratio) compares a property’s monthly rent to its full monthly housing payment: principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.00 means rent equals that payment.
Cash-out refinance replaces your existing loan with a larger one. You keep the difference after the payoff and closing costs.
Seasoning is the waiting period a lender wants between buying a property and refinancing it. About 6 months of ownership is the common expectation.
STR collateral is a property the lender treats as a short-term rental, meaning nightly or weekly stays booked through platforms. It sits in a different leverage tier than a long-term rental.
What Does “Highest Available LTV” Actually Mean Here?
It means the highest percentage of appraised value a lender will lend on your specific transaction type. That figure changes with the transaction. Purchase leverage runs higher than cash-out leverage, and short-term-rental collateral runs lower than long-term rental collateral.
Here is how the pieces stack up across the network, as typical ranges subject to lender guidelines:
| Scenario | Typical ceiling |
|---|---|
| STR purchase | Up to 75% LTV |
| STR cash-out refinance | Up to 70% LTV |
| Standard rental cash-out | About 75% LTV |
| Standard rental purchase | 75%-80% LTV |
Notice the pattern. Cash-out always sits below purchase, and short-term-rental collateral always sits below a long-term rental. Reading a quote against the wrong row of this table is an easy way to misjudge how much you can borrow, so confirm which scenario the quote assumes.
Why Is STR Leverage Lower Than Long-Term Rental Leverage?
Lenders see short-term rentals as riskier collateral, so they lend less against them. The income swings with seasons, the economy, and local rules, and it takes more skill to run well.
Lenders tend to respond in one of three ways. Some skip short-term rentals altogether. Some underwrite the property as a long-term rental. Others accept the nightly income but lend at lower leverage. That spread is why quoted maximums differ so much from one lender to the next. A broker that shops several wholesale lenders can match your file to the group that actually writes your property type.
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 hosting isn’t allowed, the income can’t support the loan at all.
How Does Underwriting Treat an STR Cash-Out, Step by Step?
Underwriting runs in a fixed order, and the loan is sized by whichever test bites first.
Step 1: Classify the property. The lender decides whether it is short-term-rental collateral or a standard rental. This sets your leverage tier before anything else happens.
Step 2: Establish the income. For a refinance, lenders typically want about 12 months of hosting history, with platform payouts that tie to your bank deposits. Some programs lean on a third-party income projection. Others fall back on the appraiser’s long-term market rent. Whichever method applies, the file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Step 3: Order the appraisal. The appraisal sets value, and value drives LTV. Here is where short-term rentals get awkward. The standard rent schedule, Form 1007, was built to document monthly market rent. It was not designed for single-family properties used as short-term rentals. McKissock, an appraiser education provider, adds that business income is out of the form’s scope and that it cannot document short-term-rental rates.
That matters to you because forcing nightly income through a long-term rent form can distort the numbers. HousingWire reports that doing so can produce artificially low coverage ratios. It also reports that a coming appraisal data standard, UAD 3.6, will retire legacy forms including the 1007.
Step 4: Size the loan. The loan is the lower of two numbers: appraised value times the leverage cap, or the loan your accepted income can carry at the coverage floor.
Step 5: Subtract costs. Cash in your hand is the new loan minus your payoff, closing costs, and any holdbacks.
The Two Tests: Equity and Coverage
The strongest files clear both tests. You need enough equity to fit under the LTV cap, and enough rental coverage to support the bigger payment.
Pulling more cash out raises the payment. A higher payment lowers coverage. So a property with big equity but thin rent can hit the coverage wall before it hits the 70% cap. A larger down payment on a purchase can lift coverage by shrinking the payment, but it never erases leverage caps, credit floors, reserve rules, or property eligibility.
Run the numbers on a modeled case. Say a short-term rental appraises at $500,000, and you owe a balance that leaves you well under 70% LTV today. On equity alone, a cash-out looks generous. But if the income the lender counts is only modestly above the payment on the current loan, a larger loan could push coverage toward 1.00 or below. The lender then trims the loan to fit the coverage test. Equity said yes. Coverage said less. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Here is one more point that trips people up. Clearing 1.00 is not the same as positive cash flow. DSCR compares rent to the housing payment only. Repairs, vacancy, management fees, utilities, and capital expenses all sit outside the calculation. A property can clear the number and still run thin after real operating costs.
Coverage below 1.00 is also a real path. It is available through select lenders in the network, with leverage and terms adjusted. It is a separate route from the 1.00 programs, not a lower floor on the same one.
What Should You Expect on Credit, Reserves, and Loan Size?
On short-term-rental files, expect a credit score of 640 or higher, and about 12 months of hosting history. Stronger scores open better leverage tiers. Loan sizes run up to $3,000,000 on standard programs, and above $2,500,000 the network generally holds to 30-year fixed structures.
Seasoning, the time you must have owned the property before a cash-out refinance, also matters. Around 6 months is common. Larger loans typically step up to about 9 months. Treat any single number as a starting point, not a promise.
Terms are flexible in a few ways. The 30-year fixed is the spine. Extended terms such as 40-year and interest-only periods are available through select lenders. Adjustable structures exist for investors who want them. Subject to program terms, loans can be made to an LLC.
Some property types are not offered at all. Manufactured homes (single- and double-wide), log homes, and barndominiums fall outside these DSCR programs.
Edge Cases: Where the General Rule Breaks
You have a short hosting history. Say you refinance after only a few months of operating as a short-term rental. Many lenders want the full 12 months. Some will use the appraiser’s long-term market rent instead. Others cap the cash-out lower. Each path changes how much you can pull, so the income method matters as much as the LTV number.
Long-term rent underwriting. Programs that count only long-term market rent may see far less income than your real nightly bookings. That can shrink the loan even when LTV would allow more.
A converted second home or former owner-occupied property. Occupancy has to be re-declared as non-owner-occupied before the file works as an investment loan.
HOA or local restrictions. If hosting isn’t permitted, short-term-rental income can’t support the loan.
Seasonal or rural properties. Some lenders tighten terms or pull back on these. Those are the files where a broker’s ability to shop more than one lender pays off.
Nightly rate times 30. Multiplying a nightly rate by thirty is not a valid way to produce monthly rent. The 1007 can’t estimate a nightly fee, and lenders use documented income or an accepted projection instead.
Which Provider Type Fits Which Investor?
No single lender wins on every file. Match the profile to the lane.
| Your situation | Likely fit |
|---|---|
| 12+ months of clean host history | Standard STR cash-out program |
| Short history, strong credit | Lenders using projections or market rent |
| Thin coverage, strong equity | Smaller loan or select-lender sub-1.00 path |
| Conservative, long-term tenant | Standard rental tier, up to 75% LTV |
Because Lendmire works with a range of wholesale lenders, it can place your file where your property type and documentation fit, rather than forcing one lender’s guidelines on every deal. For program background, the complete DSCR loans guide covers the full structure.
What to Prepare Before You Apply
Cleaner paperwork opens more options. Have these ready:
- Twelve months of platform payout statements that tie to your bank deposits
- Your current mortgage payoff information
- Proof of insurance suited to a short-term rental
- Your entity documents, if the property sits in an LLC
- Confirmation that local rules and any HOA allow hosting
- Evidence of reserves
Documentation can decide whether the short-term-rental route is open at all.
Max LTV Is a Ceiling, Not a Target
Taking the maximum is rarely the smartest move. Higher leverage means a bigger payment, thinner coverage, and less cushion in a slow season. Underwriting uses an average income, but you still have to survive the quiet months.
Run the loan you can comfortably carry, then compare it to the ceiling. If the ceiling feels too low for your goals, you can pull less now, hold longer to build equity, or revisit once your history and coverage improve.
Frequently Asked Questions
What is the highest LTV on a short-term rental cash-out refinance?
Across the network, short-term-rental cash-out typically tops out at 70% LTV, subject to lender guidelines. A standard long-term rental cash-out reaches about 75%. Rent coverage can limit the loan below either figure.
Can I get a short-term rental cash-out with less than 12 months of history?
Sometimes. Many programs want about 12 months of hosting history. Some lenders fall back on market rent or a projection, which can lower the loan amount. A broker can show you which lenders fit a shorter history.
Do I need a 1.00 coverage ratio?
On short-term-rental refinances, 1.00 is where select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Eligibility depends on the lender and the file.
How long do I have to own the property before cashing out?
About 6 months of ownership seasoning is the common expectation across the network.
Will the appraiser count my Airbnb income?
Not directly. The appraiser values the real estate, and McKissock notes that business income is outside the scope of the standard rent form. Lenders count income through your documented history, an accepted projection, or market rent.
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. You can reach the team at 828-256-2183 or request a quote. An illustrative calculator on the site can give you a rough estimate, not a quote.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
About Lendmire
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that helps arrange investor financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR eligibility is generally reviewed by the lender around the property’s rental income rather than personal income documentation, subject to lender guidelines — which works for self-employed investors, LLC operators, and portfolios above four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. McKissock
2. HousingWire: Short-term rentals are breaking the appraisal playbook
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 Short-Term Rental Cash-Out Refinance Providers on a Free-and-Clear Rental · Short-Term Rental Cash-Out Refinance Requirements for an Out-of-State Investor · Banks That Offer a Short-Term Rental Cash-Out Refinance With the Highest Available LTV
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.