DSCR Cash-Out Refinance Advantages
- Up to 80% cash-out LTV at the top credit tier (740 FICO, loan up to $2.5M)*
- No seasoning on eligible loans: use the appraised value without waiting 6 months*
- Cash-out may be used to satisfy the reserve requirement
- LLC vesting allowed: the LLC holds title from closing
- No personal income docs: no W-2s, no tax returns, no paystubs
- No DTI calculation: the loan qualifies on the property's rent
- Close in as little as 15 days, same as our purchase program
DSCR Cash-Out Matrix
Maximum cash-out LTV depends on your FICO and loan size. With no seasoning on eligible loans, these maximums apply to the appraised value, even if you bought the property recently.*
| FICO | Loan amount | Max cash-out LTV |
|---|---|---|
| 740 | $2.5M | 80% |
| 720 | $1.5M | 80% |
| 700 | $1M to $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Total equity withdrawn at closing cannot exceed $500K when LTV is above 65%, or $1M when LTV is at or below 65%.
Paying off hard money instead of taking cash out? A rate-and-term refinance goes up to 85% LTV at the top credit tier, with no seasoning on eligible loans.* See how BRRRR refinancing works
*Maximum LTVs apply at the top credit tier. No seasoning is available on eligible loans. Loan program, credit score, loan amount, property type and documentation affect eligibility and LTV. Not all applicants will qualify.
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 up to 80% LTV at the top credit tier recycles your equity into the next deal. On eligible loans there's no seasoning, so you can refinance as soon as the property is rented instead of waiting 6 months.* 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. If you only need to pay off the hard money loan, a rate-and-term refinance goes up to 85% LTV at the top credit tier, with no seasoning on eligible loans.*
Accessing Equity Without an Owner-Occupied Refinance
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, with 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 credit tier (740 FICO with a loan up to $2.5M, or 720 FICO with a loan up to $1.5M), with no seasoning on eligible loans. Cash-in-hand caps: $500K when LTV is above 65%, $1M when LTV is at or below 65%.
What's the Seasoning Requirement?
On eligible loans, there isn't one. You can refinance on the appraised value right after you buy or finish the renovation, instead of waiting 6 months like most lenders require. Eligibility depends on the loan program, your credit score and the property.
Should I Do a Cash-Out or a Rate-and-Term Refinance?
Choose cash-out when you want to pull equity out for the next deal. It goes up to 80% LTV at the top credit tier. Choose rate-and-term when you need to pay off an existing loan, such as hard money, without pulling out equity. It goes up to 85% LTV at the top credit tier. Both have no seasoning on eligible loans.
Can Cash-Out Proceeds Replace My Reserves Requirement?
Yes. This is one of the strongest features of a DSCR cash-out refinance. Standard reserves: 2 months PITIA for loans of $1.5M or less, 6 months PITIA for $1.5M to $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?
A DSCR of 1.00 or higher (monthly rent equal to or greater than the monthly payment, including taxes, insurance and any HOA dues) is required for the maximum LTV tier shown in the matrix. A DSCR below 1.00 caps the LTV lower. For example, at 700 FICO with a $1M to $1.5M loan and a DSCR below 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, and we’ll quote the cash-out in 24 hours.
