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DSCR cash-out refinance
Pull equity from your rental properties without tax returns or income verification.
A DSCR cash-out refinance lets you pull equity from a rental without tax returns or income verification. Across our lender network, cash-out commonly goes to 65% to 75% of the value, up to 80% on select programs, with cash-in-hand limits on many programs. Select programs also allow refinancing soon after a cash purchase. The property must still meet the DSCR requirement.
What a DSCR cash-out refinance does
You replace your current loan, or no loan, with a new DSCR loan sized to the property's value, and you receive the difference as cash. Investors use the proceeds as the down payment on the next rental, for renovations, to repay higher-cost debt or to build reserves. The new payment counts in PITIA, so check the ratio before you borrow. See the DSCR calculator.
The ranges across our network
| Item | What to expect on select programs |
|---|---|
| Maximum LTV | Commonly 65% to 75%. Up to 80% on select programs |
| Cash-in-hand limits | Commonly $500,000 to $1 million. Higher limits on select programs at lower LTV |
| DSCR | 1.0 or higher is common. Lower ratios mean lower cash-out LTV |
| Seasoning | Varies. Select programs allow delayed financing within about 12 months of a cash purchase |
| Vacant property | Often allowed, with a lower maximum LTV |
| Reserves | Select programs let cash-out proceeds count toward reserves |
| Documents | No tax returns, W-2s, pay stubs or income verification |
General guidance on programs available across our lender network. Not every program offers every feature, features often cannot be combined, and guidelines change without notice. Rates and terms are not shown here. This is not a commitment to lend.
Rate and term versus cash-out
A rate and term refinance replaces the loan without taking cash out, and generally allows higher leverage than cash-out. If you are not pulling equity, ask us for both options. Recently purchased properties and those with improvements can have different rules, including how value is measured.
Using cash-out to grow a portfolio
Many investors recycle equity by refinancing a stabilized rental and using the proceeds as a down payment on the next one. That raises leverage and monthly obligations, so keep reserves and test each new property. Individuals and LLCs can both use cash-out on many programs. For a first purchase, see first-time investor DSCR loans.
Read more in our guide to DSCR cash-out refinance basics.
More DSCR programs
- First-time investor DSCR loans
- DSCR below 1.0 and no-ratio loans
- Airbnb and short-term rental DSCR loans
- Foreign national and ITIN DSCR loans
- Interest-only DSCR loans
- DSCR loans for LLCs
- 5 to 8 unit DSCR loans
- All DSCR loan programs at a glance
- DSCR loan requirements
- DSCR calculator
Ready to run your numbers?
Free quote. No credit pull to start. A licensed 1st Advantage Mortgage team member follows up.
Frequently asked questions
How much can I borrow with a DSCR cash-out refinance?
Cash-out refinances commonly go to 65% to 75% of the value and up to 80% on select programs. Many programs also cap the cash you can take out, commonly at $500,000 to $1 million, with higher limits on select programs at lower LTV. The property must still meet the program's DSCR requirement.
Can I refinance a property I bought recently?
On select programs, yes. Delayed financing allows a refinance soon after an all-cash purchase, often within about 12 months, using the documented purchase price and costs. Other programs use appraised value after a seasoning period, and a few have little or no seasoning. Tell us when and how you bought.
Can I use cash-out proceeds for reserves?
On select programs, yes. Some programs count cash-out proceeds toward required reserves, which can help when you are using the cash to buy another property.
Do I need tax returns for a DSCR cash-out refinance?
No. There are no tax returns, W-2s, pay stubs or income verification on any DSCR program. The refinance qualifies on the property's rent, your credit and the equity.
Free, no obligation
Get your DSCR loan quote
Tell us about the property. A licensed 1st Advantage Mortgage team member follows up with you. There is no fee to ask and no credit pull to start.
- We compare specialist wholesale lenders instead of fitting you to one lender's menu
- Qualify on the property's rent, with no tax returns, W-2s or pay stubs on any program
- North Carolina and South Carolina investors, including first-time investors and LLC buyers
- Talk to a person: call 704-343-8681
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