DSCR cash-out refinance
DSCR Cash-Out Refinance: what do real estate investors need to know?
Cash-out refinance an investment property on rental income alone — up to 75% LTV, LLC vesting, no income docs. Fund the next deal with equity you already own. Final eligibility, pricing, and terms are subject to a complete application, credit and property review, and full underwriting.
- A DSCR cash-out refinance pulls equity out of a rental using the property's cash flow, with no personal income documentation.
- Cash-out is generally capped at 75% LTV, a tier below rate & term, and prices modestly higher.
- Seasoning rules decide whether the lender uses your purchase price or the new appraised value — this is the single biggest variable on BRRRR deals.
- Proceeds are commonly recycled into the next down payment, rehab, or to pay off hard money before it matures.
- Figures shown are illustrative; your DSCR, appraisal, and reserves determine actual proceeds.
A DSCR cash-out refinance replaces your existing loan with a larger one and returns the difference to you at closing. Qualification is the same ratio test as a purchase — gross rent divided by the new PITIA — which is why self-employed and portfolio investors use it instead of a conventional cash-out.
What a cash-out actually nets you
Illustrative example only — your figures will differ.
| Appraised value | $420,000 |
| Max cash-out LTV (75%) | $315,000 |
| Existing loan payoff | $212,000 |
| Estimated closing costs & escrows | $11,500 |
| Estimated cash to borrower | $91,500 |
| Market rent | $2,950 / mo |
| New PITIA @ illustrative pricing | $2,610 / mo |
| Resulting DSCR | 1.13 — qualifies |
Illustrative only. Not a quote, offer, or commitment to lend. Actual proceeds depend on appraised value, payoff, credit tier, DSCR, and closing costs.
Get your DSCR Scenario Summary
Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.
- HUD FMR rent estimate for the subject property
- AVM property value + max qualifying loan
- Calculated DSCR with PITIA breakdown
- Cash-on-cash and year-one cash flow
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Current DSCR Cash-Out Refinance Rates
Cash-out refinances are priced separately from purchase and rate-and-term scenarios, and pricing differences between those purposes vary by investor and program. The live options below come from a real pricing search under our production pricing context, so the rate, APR, points or lender credit and payment on each row all come from the same quote.
Leverage is a central input on a cash-out file, and maximum LTV and any leverage-based pricing adjustments vary by investor and program. Because the loan amount is set by appraised value rather than a contract price, an appraisal that comes in short can change both your proceeds and the options available.
Use of funds affects eligibility: these are business-purpose loans, so proceeds may not be used for personal, family or household purposes.
Live pricing unavailable — no current pricing response.
Get My Live DSCR Rates
The three cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.
Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.
APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.
Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.
Rate questions for this page
Why is my DSCR cash-out rate higher than a purchase rate?
Loan purpose is one of the inputs investors price on, and many programs price a cash-out differently from a purchase. Whether an adjustment applies to your file, and how large it is, is program-specific and shows up in the live quote for your scenario.
How much equity do I need to leave in the property?
Maximum cash-out leverage varies by investor, property type and borrower profile, so there is no single figure we can publish. We can confirm the limits available for your scenario in writing.
Common cash-out scenarios
Refinance out of hard money after the rehab is complete and the property is leased, recycling your capital into the next deal.
Convert equity in a seasoned rental into the down payment on one or two additional doors.
Pull cash for capital improvements on other properties in your portfolio without a construction loan.
Retire higher-cost business debt or a maturing balloon with 30-year fixed rental financing.
Seasoning and value: what counts, and when
Value is generally the lesser of purchase price or appraised value. Delayed-financing style structures may apply.
Appraised value can be used with documented completed improvements, the loan at or under 120% of cost basis, a one-year minimum prepay, a tenant in place, and DSCR of at least 1.15.
Full appraised value applies with no cost-basis limitation — the standard BRRRR refinance window.
Cash-out refinance: benefits and trade-offs
- Access equity without selling or triggering a taxable sale
- No income documentation and no DTI test
- Close in your LLC with no pricing premium
- 30-year fixed and interest-only structures available
- Leverage caps below purchase — generally 75% LTV
- Rate prices slightly above rate-and-term
- A larger loan means a higher PITIA and a lower DSCR
- Prepayment penalties apply on best-priced options
Find out how much equity you can access
Send the address, current rent, and payoff balance. We'll run the cash-out scenario and show you the number.
DSCR loan programs
Every DSCR variant we arrange, with the leverage and credit floor that applies to each.
Buy a 1–8 unit rental qualified on market rent or the in-place lease — up to 80% LTV, no tax returns.
Replace hard money, a maturing bridge, or a higher-rate note with 30-year fixed rental financing.
A revolving line against rental equity — draw only what you need. 700 min FICO, up to 75% CLTV.
A second-position line behind your existing first mortgage on a rental — priced on combined loan-to-value.
For properties that don't fully cover PITIA. Larger down payment and a rate premium instead of a ratio test.
The formula, the rent figure lenders use, and every step from scenario review to closing.
Credit, DSCR floor, down payment, reserves, property type, and entity rules laid out in one place.
A 10-year interest-only period lowers PITIA, lifts your ratio, and frees monthly cash flow.
The honest ledger — what you gain over conventional financing and exactly what it costs.
Current rate bands by DSCR, LTV, and FICO tier — plus what actually moves your pricing.
Run rent ÷ PITIA in seconds and see which pricing tier your deal lands in.
Cash-out refinance questions
How much can I cash out of a rental property with a DSCR loan?
Cash-out generally maxes at 75% LTV at the strongest tier, and lower at reduced credit scores, higher loan amounts, or on short-term rentals. Your net proceeds are that amount less the existing payoff and closing costs.
Is there a seasoning requirement?
Under 180 days of ownership, value is typically the lesser of purchase price or appraised value. Appraised value can be used at 90–180 days with documented completed improvements, a loan at or under 120% of cost basis, a minimum one-year prepayment penalty, a tenant in place, and DSCR of at least 1.15.
Do I need income documentation to cash out?
No. The refinance is underwritten on the property's rent against the new PITIA. No tax returns, W-2s, or DTI calculation.
Can I cash out of a property held in an LLC?
Yes — entity vesting is standard on DSCR and carries no pricing premium. We will need the entity documents and a guarantor.
What can I use the proceeds for?
Business purposes only: acquiring another investment property, funding rehab, paying off business debt, or reserves for your portfolio. These loans may not be used for personal, family, or household purposes.
How is this different from a rate-and-term refinance?
Rate-and-term only replaces the existing balance plus limited costs and allows higher leverage and better pricing. Cash-out takes equity out, caps lower, and prices slightly higher.
Can I do a cash-out refinance on a property I own free and clear?
Yes. A property with no existing mortgage still follows the same cash-out leverage caps — generally up to 75% LTV at the strongest tier — and ownership seasoning rules apply the same way as on a mortgaged property.
Does a cash-out DSCR refinance require an appraisal?
Yes, an appraisal is required to establish current value and support the rent used in the DSCR calculation. Value is also compared to seasoning rules if the property was acquired recently.
Can I cash out on a short-term rental?
Yes on select programs, though short-term rental cash-out generally caps lower than a standard long-term rental and is underwritten on documented platform revenue or a market income projection.
How does DSCR affect my maximum cash-out amount?
A stronger coverage ratio at the resulting loan amount generally supports higher leverage within program caps, while a marginal ratio may require pulling less cash out or accepting a lower LTV to keep the file within guidelines.
Are closing costs higher on a cash-out refinance than a purchase?
Closing costs are generally similar in structure — title, escrow, appraisal, and lender fees — though cash-out pricing itself typically carries a modest rate adjustment compared to a purchase or rate-and-term transaction.
Can I use cash-out proceeds as the down payment on another property?
Yes, this is a common business use of proceeds. Funds are disbursed to you at closing and there is no restriction tying them to a specific future purchase, as long as the use remains business purpose.
Business-purpose loans only; proceeds may not be used for personal, family, or household purposes. Figures shown are illustrative, subject to change, and are not a quote, offer, or commitment to lend. Subject to underwriting and approval.
Related programs & tools
The main program: qualify on the property's rent instead of your tax returns.
Underwrite nightly-rate revenue from trailing 12-month actuals or market projections.
Voucher-backed rent with the HAP portion treated as the conservative qualifying income.
Short-term, asset-based financing when you need to close before a refinance or sale.
Purchase plus rehab draws on a 12-month interest-only term for value-add projects.
Current rate bands across every business-purpose program we place.
How We Evaluate This Scenario
Two constraints bind at the same time on a cash-out: the cash-out LTV cap and the coverage floor at the new, larger payment. Run the post-close ratio before you pick a loan amount — the maximum proceeds the LTV allows are frequently more than the rent supports.
Seasoning rules decide your value basis. Depending on how long the property has been owned and whether it was recently renovated, a lender may use the appraised value or fall back to your purchase price plus documented improvements.
Count the full cost of the money: closing costs, any prepayment penalty on the loan being paid off, and the higher payment you carry going forward. Equity pulled out is only cheap if the next deal earns more than the new debt costs.
Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.
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