Plenty of Coast landlords own houses bought cheaply after 2005 that are now worth far more. The question for a cash-out is not the value. It is whether the rent still covers the new payment after this year's insurance renewal.
In short: LendingStreet's DSCR cash-out refinance lets Gulfport, Long Beach and Biloxi investors pull equity from 1-8 unit rentals at up to 75% LTV, qualifying on the property's rent instead of personal income. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620. Seasoning rules vary by program.
Values along the Mississippi Coast have climbed well past what many landlords paid in the years after Katrina. Investors use the cash to buy the next rental, fund a rehab, replace an older roof or simply pay off a higher-cost loan. Because a DSCR loan qualifies on rent, you do not need to show W-2s or tax returns, which suits self-employed owners and those with several properties.
Cash-out can also make sense when a landlord owns a property free and clear. That is common on the Coast, where many owners rebuilt with insurance proceeds after 2005 and never took a new mortgage. A paid-off rental in Gulfport or Ocean Springs can become the down payment on two or three more, while the original property keeps paying for itself. The test is the same: the rent has to support the new payment, including today's insurance and taxes, at the 1.0x standard minimum.
Insurance renewals on the Coast can move sharply from one year to the next. The lender uses your current premium, so a big renewal can shrink the loan you qualify for. Before applying, get the actual renewal figures for wind, hazard and flood, and shop them if you can.
Ask about wind-mitigation credits for roof straps, a newer roof or a FORTIFIED roof certificate. A lower premium raises your DSCR dollar for dollar.
This example is illustrative and not a quote. A landlord owns a three-bedroom Long Beach rental worth $320,000 with $95,000 left on the mortgage. It leases for $2,350 a month. Taxes are about $290 and insurance about $340.
At 75% LTV, the new loan is $240,000, which pays off the old loan and leaves about $145,000 before closing costs. Estimated principal and interest is about $1,678, bringing the total to about $2,308 and DSCR to about 1.02x.
If the next insurance renewal came in at $440 instead, the payment would rise to about $2,408 and DSCR would fall to about 0.98x. That is why we size Coast cash-outs on current premiums and show a few loan amounts.
| LTV | New loan | Cash before costs | Est. principal and interest | Total payment | DSCR |
|---|---|---|---|---|---|
| 75% | $240,000 | $145,000 | $1,678 | $2,308 | 1.02x |
| 70% | $224,000 | $129,000 | $1,566 | $2,196 | 1.07x |
| 65% | $208,000 | $113,000 | $1,454 | $2,084 | 1.13x |
Rentals in Mississippi are assessed at a 15% assessment ratio, so your tax bill as an investor is already at the non-homestead level. A refinance does not trigger reassessment on its own, but Harrison County periodically reappraises, and higher values raise the bill. Use your most recent tax notice and check the county assessor's record for any pending changes.
Remember that the tax and insurance escrow on the new loan is set from these figures. If the tax bill or premium rises after closing, your monthly payment rises with it, so leave some cushion in the ratio rather than borrowing right up to the 1.0x line. Many Coast landlords aim for a DSCR comfortably above the minimum for exactly this reason.
Most programs want you to have owned the property for a period before cash-out is based on today's value; the requirement varies by program, and our cash-out seasoning page explains the options. If the house is in an LLC, bring the operating agreement and good standing from the Mississippi Secretary of State. Title will also check for any unreleased liens from past storm repairs. If you hold it personally, some programs let you move it into an LLC at closing.
Common uses include a down payment on another Coast rental, a fix and flip, or paying off a maturing loan on a different property. If you own five or more rentals, a blanket portfolio loan can refinance them together with one closing; our Mississippi blanket loan page explains how release provisions work.
Your appraiser will compare your rental with recent sales that share its flood status, elevation and age. A raised post-2005 home near the beach may have few true comparables, while a slab home north of I-10 usually has plenty. If you have made improvements since buying, such as a new roof, impact windows or an HVAC replacement, list them with dates and costs so the appraiser can account for them.
The appraiser also estimates market rent. If your current lease is below market because a long-term tenant has stayed for years, the market figure may support a larger loan, subject to the program. A signed lease renewal at a higher rent is the cleanest support.
Send the address, estimated value, payoff, rent and your current insurance premiums through the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. See our Mississippi DSCR cash-out page for statewide details.
Up to 75% of the appraised value, minus your payoff and closing costs, as long as the rent clears the DSCR minimum at the new payment.
No. DSCR loans qualify on the property's rent, not personal income.
Yes. The current premium is part of the payment used in the ratio, so a higher renewal lowers the loan you can support.
Seasoning varies by program. Some use today's appraised value after a shorter hold than others.
Yes. Flood insurance is included in the payment, and the appraisal and premium decide the numbers.
Take less cash, document higher market rent, or ask about sub-1.0 DSCR programs.
Yes. Many investors close in an LLC; some programs allow moving title into an LLC at closing.
Yes. We lend across Harrison, Jackson and Hancock counties and the rest of Mississippi, on 1-8 unit non-owner-occupied rentals.
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