DSCR refinance · NMLS #1707407

DSCR Refinance: Rate-and-Term and Cash-Out for Rental Properties

A DSCR refinance replaces the loan on your rental property with a new loan that qualifies on the property's rent, not your personal income. Investors use it to lower a payment, get out of a hard money or flip loan, switch from an adjustable rate to a fixed rate, or pull cash out for the next deal.

Get my refinance quote See today's DSCR rates

Up to 75–80%rate-and-term LTV

Up to 70–75%cash-out LTV

About 6 monthstypical cash-out seasoning

No tax returnsqualify on the rent

Rates and costs

Rate-and-term vs. cash-out refinance

Most refinance problems come from timing: how long you've owned the property, whether it was listed for sale, and what your current loan's prepayment penalty costs. We check all three before you pay for an appraisal.

Rate-and-term refinance: pays off your current loan (plus closing costs) to change the rate, the term or the loan type. Lenders allow higher leverage, often up to 75–80% of the value.
Cash-out refinance: borrows more than you owe and gives you the difference in cash. Lenders usually cap it at about 70–75% of the value, and less with lower credit scores or on larger buildings.

If you want cash but your first mortgage has a great rate, a DSCR HELOC or DSCR second mortgage lets you keep it. Compare the options in DSCR HELOAN vs. HELOC vs. cash-out refinance.

Requirements

DSCR refinance requirements

These are typical ranges across the lenders we work with.

	Rate-and-term	Cash-out
Credit score	Usually 620–680+	Usually 640–680+; best leverage at 700–740
Max loan-to-value	Up to about 75–80%	About 70–75%
DSCR	Often 1.0; some lenders lower; no-ratio available	Often 1.0; some lenders lower; no-ratio available
Ownership time (seasoning)	Usually none required to pay off an existing loan	Often 6 months to use the new appraised value; some lenders allow less
Income	Lease or appraiser's market rent; 12-month booking history for short-term rentals	Same
Reserves	Usually a few months of payments; cash-out proceeds can often count	Same
Tax returns	Not required	Not required

Run your numbers with our DSCR refinance calculator, and read more about a DSCR cash-out refinance.

Timing

Seasoning: the rule that decides your cash-out

Seasoning is how long you've owned the property. It matters most if you bought below value or added value with a rehab.

Under about 6 months of ownership, many lenders will only lend against what you paid plus documented rehab costs, not the new appraised value.
After about 6 months, most lenders use the new appraised value.
Some lenders allow 3 months or no seasoning, usually at a higher rate or cost.

This is the key number for BRRRR investors. Plan your refinance date before you buy, and keep every rehab receipt and invoice. Try our BRRRR calculator.

Loan options

Your refinance options

We have DSCR (including no-ratio), lite doc and full doc options. The more documentation you provide, the lower the rate tends to be. We'll walk through which options you'd likely qualify for and which one fits your timeline.

From the broker

5 refinance mistakes that cost investors money

"The most expensive refinance mistakes happen months before the refinance. Listing the property, cutting the price, or pulling the trigger on an appraisal before checking seasoning can each cost you real cash. I check the timeline first, then shop the loan."

— Trevor Gravink, Mortgage Broker, ReBroker Buddy (NMLS #1707407)

Refinancing right after listing the property. If the property was listed for sale recently, most lenders value it at the lower of the last list price or the appraisal, and many want it off the market for 6 months before a cash-out. If you're torn between selling and refinancing, talk to us before you list.
Dropping the list price without running the refinance numbers. Each price cut can lower the value a refinance lender will use, which lowers your cash-out. Before you cut the price, have us run the refinance at the new number.
Ordering the appraisal before checking seasoning. If you've owned the property less than about 6 months, the new value may not count yet. Check seasoning first, and ask about lenders with shorter seasoning if the timing matters more than the cost.
Ignoring your current prepayment penalty. Many DSCR loans carry a 3- to 5-year prepayment penalty. Get the exact payoff, including any penalty, before you decide a refinance is worth it.
Comparing quotes with different structures. A quote that assumes a 5-year prepayment penalty and a 1.25 DSCR will look better than one that doesn't. Compare offers on the same prepayment penalty, the same DSCR and the same loan amount.

Real results

Real result

"I had a great experience working with Trevor on the refinance of one of my investment properties… The loan closed successfully and it was recorded as expected. I would work with Trevor again."

— HBA Solutions, 5-star Google review

What clients say

Reviews from our clients

FAQ

DSCR refinance FAQ

How soon can I do a cash-out refinance on a rental?

Many lenders require about 6 months of ownership to use the new appraised value. Some allow 3 months or none, usually at a higher cost.

Can I refinance out of a hard money or fix and flip loan?

Yes. This is one of the most common DSCR refinances. Plan for seasoning before you buy so the flip loan doesn't come due first. See fix and flip loans.

How much cash can I take out?

Usually up to about 70–75% of the appraised value, minus what you owe. Credit score, property type and the DSCR can lower that.

Do I need tax returns to refinance a rental?

No. DSCR refinances qualify on the property's rent.

Can I refinance a short-term rental?

Yes. Many lenders use 12 months of booking history. See short-term rental loans.

Can I refinance a property I listed for sale?

Usually, but expect the lender to use the lower of the last list price or the appraisal, and some require it to be off the market for several months first.

Keep exploring

More investor loans

Get started

Get your DSCR refinance quote

Answer a few quick questions about the property and your plans. There's no credit check to see your options, and we'll shop your scenario across our lenders.

Prefer to talk first? Call (619) 404-6637 or book a free consultation.

Business-purpose loans for non-owner-occupied investment properties. Programs, guidelines and ranges shown are typical of the wholesale lenders we work with and can change at any time. Not a commitment to lend. Broker Buddy LLC, Trevor Gravink NMLS #1707407.