DSCR Cash-Out Refinance
DSCR Cash-Out Refinance
Cash out equity from your rental property based on the property’s income — no W-2s, no tax returns, LLC vesting allowed. Up to 80% LTV at the top tier.
DSCR cash-out refinance advantages
- Up to 80% cash-out LTV at top tier (740 FICO, $2.5M loan)
- Cash out may be used to satisfy the reserve requirement (unique to DSCR cash-out)
- LLC vesting allowed — keep the loan off your personal credit
- No personal income docs — no W-2s, no tax returns, no paystubs
- No DTI calculation — we don't care about your debt-to-income ratio
- Same fast 15-day close speed as our purchase program
DSCR cash-out matrix
Maximum cash-out LTV depends on your FICO and loan size. 80% is reserved for the top FICO and loan tiers — here’s the honest matrix.
| FICO | Loan amount | Max cash-out LTV |
|---|---|---|
| 740 | $2.5M | 80% |
| 720 | $1.5M | 80% |
| 700 | $1M–$1.5M | 75% |
| 700 | $2M | 70% |
| 700 | $3M | 65% |
| 660 | $1M | 70% |
Cash-in-hand caps
Total equity withdrawn at closing cannot exceed $500K when LTV is above 65%, or $1M when LTV is at or below 65%.
When to use a DSCR cash-out refinance
Four scenarios where DSCR cash-out is the right tool.
Scaling into the next deal (BRRRR refinance)
You bought, rehabbed, and rented a property — now you want your capital back to deploy on the next acquisition. DSCR cash-out at up to 80% LTV (top tier) recycles equity efficiently. The classic BRRRR refinance step.
Pulling equity for renovation reserves
You own a stabilized rental free-and-clear or with a small balance, and you want to fund a value-add renovation on a different property. Cash-out the equity, deploy into the rehab, force appreciation on the second property, refinance that one too.
Consolidating high-rate hard money
You used hard money or a bridge loan to acquire a property quickly. Now it's time to refinance to long-term permanent financing. DSCR cash-out pays off the hard money lender and lets you walk away with additional cash if the LTV math supports it.
Accessing equity without an owner-occupied refi
Owner-occupied cash-out refinances require full income documentation. If the property is a rental, DSCR cash-out skips that entirely — you qualify on the property's rent vs. its debt service, no personal income required.
Interest-only option for cash-out
Available for borrowers with 680+ FICO at up to 70% cash-out LTV. The interest-only period lowers monthly debt service, which can raise your DSCR ratio and unlock pricing that a fully-amortizing loan can’t match. Useful when you need maximum monthly cash flow during a value-add hold period.
DSCR cash-out refinance — FAQs
How much can I cash out on a DSCR refinance?
Up to 80% LTV at the top tier (740 FICO + $2.5M loan, or 720 FICO + $1.5M loan). Lower FICO and larger loans cap at 75%, 70%, or 65% LTV. Cash-in-hand caps: $500K when LTV exceeds 65%; $1M when LTV is at or below 65%. Total equity withdrawn cannot exceed these limits.
What's the seasoning requirement?
0–6 months of ownership: refinance uses the LESSER of (purchase price + documented improvements) or appraised value. After 6 months: full appraised value is used. There's a Renovation Cash-Out exception that may allow appraised value under 6 months when the property was purchased and renovated per appraiser inspection with SSR ≤ 2.5 — see the full guidelines.
Can cash-out proceeds replace my reserves requirement?
Yes — this is one of the strongest features of DSCR cash-out refinance. Standard reserves: 2 months PITIA for loans ≤ $1.5M, 6 months PITIA for $1.5M–$2.5M, 12 months PITIA above $2.5M. The cash you take out at closing can be used to satisfy the reserve requirement, freeing other liquid assets for your next deal.
Does interest-only work for cash-out?
Yes. Interest-only is available for borrowers with 680+ FICO, with cash-out LTV capped at 70% under the IO program. The interest-only period lowers monthly debt service, which can also raise your DSCR ratio and unlock higher LTV than a fully-amortizing loan at the same property.
What's the DSCR ratio requirement?
DSCR ≥ 1.00 (monthly rent equal to or greater than PITIA) is required to qualify for the maximum LTV tier shown in the matrix. DSCR below 1.00 caps the LTV lower — for example, at 700 FICO with a $1M–$1.5M loan and DSCR <1.00, max LTV drops to 75% purchase (and lower for cash-out). Submit your specific scenario for an exact quote.
Can I cash-out an LLC-owned rental?
Yes. DSCR loans accept LLC vesting at closing — single-member, multi-member, series, and holding LLCs all qualify. The cash-out refinance can be in the LLC's name, with the proceeds distributed to the member(s) per the operating agreement.
Cash out your rental in 15 days
Send us your address and the lease — we’ll quote the cash-out in 24 hours.