A DSCR refinance replaces the loan on a rental with a new one, qualifying on the property's rental income. A DSCR cash-out refinance does the same and hands you the equity, the engine behind the BRRRR strategy and most portfolio scaling.
The levers that matter
- LTV: cash-out on a rental typically tops out around 75 to 80% of value.
- Seasoning: lenders usually want you to own the property for a set period (often six months) before a cash-out, though forced equity from a renovation can shorten the wait.
- Rate vs cash: pulling more cash usually means a higher rate. The right amount is the one that funds the next deal without starving its cash flow.
Where it fits
If you bought with cash or hard money, a DSCR cash-out is how you recycle that capital into the next property. If you are simply lowering a rate on a stabilized rental, a rate-and-term DSCR refinance does it without the cash-out premium. Either way you qualify on the rent, not your tax returns, the foundation covered in the DSCR and Investor Loans guide.
Watch the prepayment penalty
Many DSCR loans carry a step-down prepayment penalty (for example 5-4-3-2-1). Refinancing before it burns off can erase the savings, so the timing of a refinance is as much about the penalty schedule as the rate.
Start with the rent roll
Give us the property's income and current loan and we will show you what a refinance or cash-out qualifies for, no personal income docs needed.
