Your Airbnb or vacation rental has a track record now. A DSCR refinance can lock in long-term financing, pull out equity, or both, based on what the property actually earns.
In short: You can refinance a short-term rental with a DSCR loan using its booking income to qualify, either from 12 months of history or, on some programs, a market-data projection. Cash-out refinances on STRs go up to 75% LTV, and rate-and-term refinances can move you off a short-term or adjustable loan into a 30-year fixed. Many programs apply an expense factor to gross bookings, so plan on qualifying with less than your top-line revenue.
Refinances have an advantage over purchases: you have real data. Many programs prefer 12 months of actual booking history, because it shows seasonality and true occupancy.
Accepted proof usually includes platform payout reports, property management statements or bank deposits that match. Some programs will use a market-data projection instead if your history is short.
Clean records speed things up. If your payouts land in a personal account mixed with other income, highlight the rental deposits or pull a management report so the underwriter can match each month quickly.
Short-term rentals cost more to run than long-term ones. Cleaning, platform fees, supplies and management all come out of revenue.
So programs often reduce gross revenue by an expense factor, or use net income after those costs. The method varies, and it can swing your DSCR a lot, so ask which approach a program uses before you compare offers.
Track your real operating costs for the year before you refinance. If your actual expenses run well below the program’s assumed factor, that context can help when you compare how different programs treat the same revenue.
This example is illustrative. You bought a mountain cabin with short-term financing. It now appraises at $520,000. Over the past 12 months it grossed $62,400, an average of $5,200 a month.
| Item | Amount |
|---|---|
| New loan at 75% LTV | $390,000 |
| Payment at an assumed rate, incl. STR insurance and taxes | $3,430 |
| DSCR on gross revenue ($5,200 ÷ $3,430) | 1.52 |
| Qualifying income after a 20% expense factor | $4,160 |
| DSCR on qualifying income | 1.21 |
Even after a haircut for expenses, the cabin clears a 1.0x minimum. That leaves room for a slower season or a rate that comes in higher than expected.
If the same property grossed $4,200 a month, qualifying income would fall to $3,360 and the DSCR to about 0.98. At that point you would look at a smaller loan or a program with a lower DSCR floor.
This is why the expense method matters as much as the revenue. Before you apply, run your 12-month total through a few different expense factors so you know how much room you have under each.
Cash-out makes sense when you want to fund another property or renovations, and the bookings support a larger loan. Seasoning commonly runs 3–12 months, depending on the program.
Rate-and-term fits when your current loan is short-term, adjustable or expensive. It usually prices better and needs less seasoning. Either way, a 30-year fixed gives you a stable payment through seasonal swings.
The fastest STR refinances start with clean data: a 12-month payout report, your current mortgage statement, and proof of insurance and permits.
Send them over and our financing team can bring you 2–3 options, including how each program calculates your qualifying income.
Yes. DSCR programs refinance short-term rentals using booking income, either actual history or a market projection, depending on the program.
Cash-out goes up to 75% of appraised value on our DSCR programs, subject to the property’s income supporting the new payment.
Not always. Many programs prefer 12 months, but some will use a market-data projection if your history is shorter.
Usually not in full. Many programs apply an expense factor or use net income after cleaning, fees and management, so qualifying income is lower than gross.
Yes. LLC borrowing is allowed on our DSCR programs, including short-term rentals.
Twelve months of history captures seasonality, which is why many programs prefer it. A strong peak season can carry slower months when averaged.
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