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Unlock trapped equity from your rental properties without personal income verification. Redeploy capital to scale your portfolio faster.
Key Takeaways
A DSCR cash-out refinance allows you to replace your existing mortgage with a new, larger loan and receive the difference in cash.[1] Unlike traditional refinances that require W-2s, tax returns, and DTI calculations, DSCR cash-out loans qualify based solely on the property's rental income.
This makes it an ideal tool for investors looking to extract equity from performing rental properties to fund new acquisitions, renovations, or other investments—without the documentation burden of conventional refinancing.
1.0-1.25
minimum DSCR ratio required by most lenders
Source: Fannie Mae
No W-2s
required - DSCR loans qualify based on property cash flow, not personal income
Source: Clear House Lending Market Data
620-680
minimum credit score typically required for DSCR loans
Source: Clear House Lending Market Data
75-80%
maximum LTV for DSCR investment property loans
Source: Freddie Mac Investor Resources
| Current Property Value | $600,000 |
| Existing Mortgage Balance | $300,000 |
| Current Equity | $300,000 (50%) |
| New Loan Amount (75% LTV) | $450,000 |
| Payoff Existing Mortgage | -$300,000 |
| Less Closing Costs (est.) | -$15,000 |
| Cash to Borrower | $135,000 |
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) relies on cash-out refinancing to recycle capital. DSCR loans are ideal for the "Refinance" step because they qualify based on the property's new rental income—not your personal tax returns.
| Feature | DSCR Cash-Out | Conventional Refi | HELOC |
|---|---|---|---|
| Income Verification | Not Required | Full Documentation | Required |
| DTI Calculation | Not Required | Required | Required |
| Max LTV | 70-80% | 75-80% | 80-85% |
| Investment Properties | Yes | Limited (10 max) | Primary Only |
| LLC Ownership | Allowed | Rarely Allowed | Not Allowed |
| Closing Time | 2-4 Weeks | 30-45 Days | 30+ Days |
Most lenders require 6-12 months of ownership seasoning before allowing a cash-out refinance. Some lenders offer shorter seasoning periods for BRRRR investors who can demonstrate significant property improvements and increased value through renovations.
Maximum loan-to-value for DSCR cash-out refinances typically ranges from 70-80%, with 75% LTV being the most common. Lower credit scores or DSCR ratios may reduce the maximum LTV available.
Yes. Unlike conventional refinances, DSCR loans allow LLC ownership, making them ideal for investors who want proper asset protection from day one. This is a significant advantage over conventional financing, which rarely permits LLC ownership.
Yes, a new appraisal is required to establish the current property value. For BRRRR investors who have completed renovations, the appraisal should reflect the improved condition and any increase in value, which determines how much equity you can extract.
Funds can be used for virtually any purpose including new property acquisitions, renovations and improvements to existing properties, debt consolidation, building portfolio reserves, or other business investments. There are no restrictions on use of proceeds.
DSCR cash-out refinances do not require personal income verification and work specifically for investment properties, while HELOCs are typically limited to primary residences and require full income documentation. DSCR loans also allow LLC ownership and have no financed property limits.
DSCR Loan Cash-Out Refinance Guide - Easy Street Capital, 2025.
https://easystreetcap.com/dscr-loan-cash-out-refinance-guide/.
DSCR Cash-Out Refinance: How Real Estate Investors Tap Equity for Growth - Ridge Street Capital, 2025.
https://www.ridgestreetcap.com/blog/dscr-cash-out-refinance.
How the BRRRR Method Works with DSCR Loans to Scale Your Portfolio - Park Place Finance, 2025.
https://parkplacefinance.com/brrrr-method-dscr/.
BRRRR Loans: How Investors Scale Real Estate Using Refinance and DSCR - Newfi Lending, 2025.
https://newfi.com/brrrr-loans/.
DSCR Cash-Out Refinance Loans for Investment Properties - Griffin Funding, 2025.
https://griffinfunding.com/non-qm-mortgages/dscr-cash-out-refinance-loans/.
Cash-Out Refinance Seasoning Requirements 2026: Waiting Periods by Loan Type - Mo the Broker, 2026.
https://www.mothebroker.com/blog/cash-out-refinance-seasoning-requirements-2026.
Clear House Lending's network includes DSCR lenders specializing in cash-out refinances. We'll help you extract equity from your rental properties to fund your next investment—without the documentation hassle of conventional financing.
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