Investors who bought around Jackson five or ten years ago, especially in Madison and Rankin counties, often have more equity than they realize. A DSCR cash-out refinance turns that equity into cash for the next purchase without tax returns or W-2s.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals across the Jackson metro up to 75% LTV, qualifying on the property's rent rather than 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 requirements vary by program.
Rentals in Madison, Ridgeland, Flowood, Brandon and Clinton have generally held value well, supported by school districts and steady demand from hospital, state government and Nissan plant workers in Canton. City rentals vary more by neighborhood: Belhaven and Fondren have strong pockets, while values in other parts of Jackson have been flat.
The appraisal decides your cash-out. Before you apply, look at recent sales of similar homes within the same subdivision or neighborhood, not across the metro.
If your rental is in a city neighborhood where sales are sparse, the appraiser may have to reach further for comparables, which can pull the value down. Give the appraiser a list of recent nearby sales and the improvements you have made, such as a new roof, HVAC system or foundation repair.
This example is illustrative and not a quote. An investor owns a Clinton rental appraised at $268,000 with a $62,000 mortgage balance. It leases for $1,975 a month. Taxes are $285 and insurance $180 a month. Closing costs are estimated at $7,500.
At 75% LTV the new loan is $201,000, estimated principal and interest is about $1,405 and the payment is about $1,870, for a DSCR of about 1.06x. Cash to the investor after paying off the old loan and costs is about $131,500. At 70% LTV the DSCR improves to about 1.11x with about $118,100 in cash.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| New loan | $201,000 | $187,600 |
| Estimated principal and interest | $1,405 | $1,312 |
| Taxes and insurance | $465 | $465 |
| Total payment | $1,870 | $1,777 |
| DSCR at $1,975 rent | About 1.06x | About 1.11x |
| Estimated cash out | $131,500 | $118,100 |
Most cash-out programs want you to have owned the property for a period before using the new appraised value; the length varies by program. If you bought and renovated recently, ask about using the appraised value versus your cost basis, and see our seasoning guide for how it works.
Investors who bought a Jackson house with cash, renovated it and leased it often want to pull their capital back out quickly. That can work on some programs, but the documentation matters: the settlement statement, receipts for the work and signed leases.
If seasoning is not met yet, a rate-and-term refinance or a short wait may be the better move.
Mississippi taxes rentals at a 15% assessment ratio. If you have held a property for years, your bill may reflect an older assessment, and a county reappraisal can raise it. Use the current bill in the ratio, and if the county has recently reappraised, ask whether a new figure is coming.
Insurance can also have moved. Premiums across central Mississippi have risen with storm losses, so get a fresh quote rather than assuming the old premium will hold at renewal. Both numbers go into the payment that the rent has to cover.
Investors around Jackson use cash-out proceeds in a few common ways.
Whatever the use, keep enough reserves after closing to cover several months of payments on the refinanced property. Programs may require reserves, and it is good practice regardless.
The maximum is not always the best choice. Pulling every dollar to 75% LTV raises the payment and lowers the ratio, which leaves less room for a vacancy, a roof replacement or a jump in insurance. Many investors in the Jackson metro pick a loan amount that keeps the DSCR comfortably above 1.0x.
Look at what the cash is for. If it funds a down payment on a rental that will itself cash flow, a higher loan may make sense. If it is reserves, a smaller loan with more cushion may serve you better.
If you own five or more rentals around the metro, including lower-priced city houses that would not reach our $150,000 minimum on their own, a blanket portfolio loan can cash out across all of them on one closing, with release provisions when you sell one.
A blanket loan also simplifies management: one payment, one maturity and one set of loan documents instead of several separate loans with different dates and terms.
Current mortgage statement, leases or a rent roll, the insurance declarations page, the county tax bill and LLC documents. If you renovated recently, include the scope and cost of the work to support the appraisal.
If the property is in an LLC, have the operating agreement and good-standing certificate ready. Clean documents keep the timeline short and help avoid last-minute questions at closing.
Use the form below or call (877) 298-1001. LendingStreet will size the loan at a few LTV levels so you can see the trade-off between cash and cash flow. Our investor loans are business-purpose loans on non-owner-occupied property. For other Mississippi markets, see our Mississippi cash-out page.
Include the address, estimated value, payoff and current rent, and tell us how much cash you are hoping to take out.
Up to 75% of appraised value, minus your payoff and closing costs, as long as the rent still covers the new payment at the program minimum. We will show you the numbers at two or three loan amounts.
No. DSCR cash-out loans qualify on the property's rent. LLC borrowers are standard, and the minimum credit score is 620.
Seasoning varies by program. See our seasoning guide or ask us about your timeline. If you renovated, receipts and photos help.
Take a lower loan amount, or ask about sub-1.0 DSCR programs where they fit. Many investors choose 70% to keep a cushion.
Yes. 1-8 unit rentals qualify, using the combined rent of all units. Fourplexes in Belhaven, Fondren and Ridgeland are common cash-out candidates.
Not directly. Taxes come from the county assessment, not your lender's appraisal. If the county reappraises, your tax bill can change regardless of the refinance.
No. Our investor loans are business-purpose loans on non-owner-occupied property. For a home you live in, talk to a residential mortgage lender.
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