A cash-out refinance on a rental comes down to a short list: credit, value, rent, entity paperwork, insurance and clean title. Here is the checklist, in the order underwriters usually look at it.
In short: To qualify for a DSCR cash-out refinance with LendingStreet, you need a 620 minimum credit score, a non-owner-occupied investment property and a loan of at least $150,000. The loan can go up to 75% of appraised value, and the rent must cover the new payment at the program's minimum DSCR, which is 1.0x on standard programs. You will also need entity documents if you hold title in an LLC, a lease or market rent support, landlord insurance and clear title. No W-2s or tax returns are required.
These are the items that decide whether the loan works and how large it can be. Details vary by program.
| Requirement | What we look for |
|---|---|
| Credit score | 620 minimum; better pricing at higher scores |
| Property use | Non-owner-occupied investment property only |
| Loan size | $150,000 minimum |
| Maximum LTV | Up to 75% of appraised value on cash-out |
| DSCR | 1.0x standard minimum at the new payment; some programs go lower |
| Income documents | None; no W-2s or tax returns |
| Seasoning | Varies by program |
| Vesting | LLC standard; individual also possible |
The 620 minimum applies to the owners who sign for the loan. Higher scores usually mean better pricing and, on some programs, more leverage. Recent mortgage late payments, foreclosures or bankruptcies can affect eligibility, so mention them early.
Because the loan is business purpose, it qualifies on the property instead of your job. You will still provide ID and authorize a credit check.
An appraisal sets the value, and on most rentals it includes a rent schedule showing market rent. The loan is capped at 75% of that value, and the rent must cover the full new payment at the program minimum.
If the property is leased, provide the lease and proof the rent is being paid. If it is vacant or between tenants, many programs can use market rent with an adjustment. Short-term rentals qualify on projected revenue.
A few things commonly shrink the final number. None of them stop a refinance on their own, but each changes the size of the check.
This example is illustrative and not a quote. An investor with a 700 credit score owns a single-family rental in an LLC. It appraises at $360,000, the balance is $160,000, rent is $2,600 a month, and taxes and insurance are $480 a month.
A 75% loan is $270,000. At a sample rate of 7.0% on a 30-year fixed loan, principal and interest is about $1,796 and the full payment is about $2,276. The DSCR is about 1.14x, which clears 1.0x.
Gross cash out is $110,000. After sample closing costs of $9,000, net cash is about $101,000. Every item on the checklist is met: credit above 620, loan above $150,000, LTV at 75% and a ratio above 1.0x.
If you bought the property recently, seasoning rules come into play. They vary by program. Some allow cash-out with little or no seasoning. Others want several months of ownership, or cap the loan at purchase price plus documented improvements until that time has passed.
Tell us your purchase date and price up front, along with receipts for any work. That lets the financing team match you to a program that lends on the value you expect.
Most cash-out refinances close in an LLC. Underwriting confirms the LLC exists, is in good standing and that the people signing have authority.
You need a landlord or dwelling policy, not a homeowner policy, with the LLC named correctly and the new lender listed as mortgagee. Properties in flood zones need flood coverage. Short-term rentals may need a policy written for that use.
The title company confirms who owns the property and what liens are recorded. Your current loan, any second lien, unpaid taxes and recorded judgments get paid from proceeds or must be cleared before closing.
Have these ready and the file moves much faster. Send the financing team your scenario and we come back with 2–3 options.
620 is the minimum on our DSCR programs. Higher scores usually get better pricing and, on some programs, more leverage.
Cash-out is capped at 75% of value, so you need more than 25% equity to receive any cash. The more equity, the larger the potential cash-out.
A lease helps, but many programs can qualify a vacant or between-tenants property on market rent. Short-term rentals qualify on projected revenue.
Many programs ask for a set number of months of payments in reserve. In some cases cash-out proceeds can count toward that.
Seasoning varies by program. Some allow cash-out with little or no seasoning, others cap the loan at purchase price plus documented improvements until you have owned it for several months.
No. We finance non-owner-occupied investment property only.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.