DSCR refinance

Cash-out refinance on your rentals.

Pull equity out of a rental you already own, or refinance out of a short-term loan into a 30-year fixed. Qualifies on the property's rent, not your tax returns.

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How it works

Recycle the capital into the next deal.

A DSCR refinance replaces the loan on a rental you own with a long-term mortgage sized on the property's rent. A cash-out refinance borrows against the equity and hands you the difference. A rate-and-term refinance pays off the existing loan, and the closing costs can usually roll in.

It is the refinance step of the BRRRR method: buy, rehab, rent, refinance, repeat. You buy and fix with short-term money, put a tenant in place, then refinance into permanent financing and take your capital back out for the next property. Here is how to finance each step of a BRRRR.

Timing is where we're different. If you've renovated the property, there's no seasoning period: we can refinance on the new appraised value as soon as the work is done, so you aren't waiting months to get your capital back. Without a renovation, plan on three to six months of ownership first.

We aim every refinance at about 75% of the appraised value. That's the practical ceiling on cash-out. Pushing higher costs real rate, and the payment still has to clear the coverage ratio. Check yours with the DSCR calculator.

A typical cash-out after a rehab

An investor bought a house for $120,000, put $40,000 into the renovation, and leased it. It now appraises at $220,000.

75% of $220,000 is $165,000. That pays off the short-term loan and returns most or all of the $160,000 invested, while the property stays in the portfolio.

Illustrative example only. Real terms depend on the lender, the property, and the borrower, and are not a commitment to lend.

Typical terms

What a DSCR refinance usually looks like.

Cash-out leverage: Up to 75% of value80% is possible at a higher rate. We aim at 75%.
Rate-and-term: Up to 80% of valueClosing costs can usually roll into the loan.
Seasoning: None after a renovationRenovated properties can refinance on the new value right away. Otherwise, 3 to 6 months.
Coverage ratio: Above 1.0Rent has to cover the new payment.
Credit: Starts around 640 to 660Varies by lender.
Term: 30-year fixedA shorter prepayment period is available at a higher rate.
Income docs: NoneNo W-2s or tax returns.
Timeline: About 30 daysFrom a complete file on a single-family refinance.

These are typical ranges across the lenders we place with, not a quote. Your actual rate, leverage, and terms depend on the property, your credit and experience, and the lender.

Is it the right loan

Who this fits, and who it doesn't.

Good fit

Owners with equity or a short-term loan to replace.

Rentals with meaningful equity you want working elsewhere
Finished BRRRR rehabs coming off a hard money or bridge loan
Rented properties, or vacant ones the market rent supports
Owners moving a property into, or holding it in, an LLC

Look elsewhere

When to wait or use something else.

A property bought weeks ago with no renovation. That needs 3 to 6 months of seasoning first.
Rent, from a lease or the market, that will not cover the new payment
Your primary residence
A plan to sell soon? Ask about a shorter prepayment period. It is available, at a higher rate.

What we need

What a refinance file needs.

Mortgage statement or payoff letter on the current loan
12 months of payment history on the existing mortgage
Original settlement statement from when you bought it
Current lease and proof the rent is being paid
Renovation scope and costs, if you're refinancing on the new value
Insurance declaration page and annual tax amount
Entity documents and photo ID
Schedule of the investment properties you own

Tell us the property

What you paid, what you put in, what it rents for, and what you owe. A credit range is enough to quote.

We check value and timing

Renovated? No seasoning needed. We confirm the value and the lender fit before you pay for an appraisal.

Close and redeploy

About 30 days on a single-family refinance. The cash goes to work on the next one.

Questions

Refinance questions.

How much cash can I take out?

Typically up to 75% of the appraised value, minus what you owe and the closing costs. Some lenders go to 80% at a higher rate, but we aim for 75%.

How long do I have to own the property first?

If you've completed a renovation, there's no seasoning requirement: we can refinance on the new appraised value as soon as the work is done. Without a renovation, plan on three to six months of ownership first. Tell us your purchase date and what you've done to the property.

What is the difference between cash-out and rate-and-term?

Rate-and-term pays off your existing loan and can roll in closing costs, but puts no cash in your pocket. Cash-out borrows against your equity and pays you the difference.

Do you finance BRRRR refinances?

Yes. If you renovated the property, there is no seasoning: we refinance on the new appraised value as soon as the work is done, up to about 75% of value.

Do I need tax returns to refinance?

No. Like a DSCR purchase, the refinance qualifies on the property's rent against the new payment.

Can I refinance a rental that's in my personal name?

Usually yes, and many investors use the refinance to move into an LLC. Tell us how it's vested today and we'll confirm the path.

Other loan types

Not quite the right fit?

Equity sitting in a rental?

Two minutes to tell us what you're working on. No application fee, no credit pull to get a conversation started.

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