Mississippi rentals are affordable, and investors in DeSoto County, the Jackson suburbs, college towns and the Gulf Coast often hold good equity relative to price. A DSCR cash-out refinance lets you pull it out using the rent.
In short: Yes. LendingStreet finances DSCR cash-out refinances on 1-8 unit investment property in Mississippi, up to 75% LTV, qualified on the property's rent instead of your tax returns, with a 620 minimum credit score and LLC borrowers standard. Mississippi has no transfer or mortgage tax, so closing costs on a refinance are lean; the assessment class and Gulf Coast insurance are the lines to watch.
You take out a new loan larger than your current balance, pay off the old mortgage and keep the difference. On a DSCR cash-out the new loan is sized on the appraised value, up to 75% LTV, compared with up to 80% LTV on a purchase.
The loan qualifies on the debt service coverage ratio: monthly rent divided by the full new payment, meaning principal, interest, taxes, insurance and any HOA dues. A bigger balance means a bigger payment, so it is the ratio after the cash-out that has to clear the 1.0x standard minimum. You do not need W-2s, pay stubs or tax returns, and the loan can close in your LLC.
DeSoto County, including Southaven, Olive Branch and Horn Lake, sits in the Memphis metro and has newer single-family rentals. The Jackson area, with suburbs like Madison, Ridgeland, Brandon and Flowood, has a mix of older and newer homes.
Oxford and Starkville have student demand from Ole Miss and Mississippi State, Hattiesburg has the University of Southern Mississippi, and Tupelo and Meridian add steady, lower-priced rentals. On the Gulf Coast, Gulfport, Biloxi and Ocean Springs combine long-term and vacation rentals with Keesler Air Force Base nearby.
Mississippi does not charge a real estate transfer tax or a state mortgage tax. A cash-out closing is mostly title, settlement, appraisal, chancery clerk recording and escrow deposits. Closings are often handled by attorneys.
Your term sheet and closing disclosure list lender costs separately from title, recording and government charges, so you can see exactly what the cash-out costs and how much of the equity reaches you.
| Closing item | How it usually works in Mississippi |
|---|---|
| Transfer tax | None in Mississippi |
| Mortgage tax | None at the state level |
| Chancery clerk recording | County fees to record the new deed of trust |
| Attorney and title | Closing attorney fee and lender title policy |
| Escrow setup | Deposits for property taxes and insurance |
Mississippi assesses owner-occupied homes at a lower percentage of value than other real property. A rental falls in the higher class, so it is assessed at a higher ratio and taxed more than the same house would be as a homestead.
If you bought from an owner-occupant, the bill can rise after the homestead treatment comes off. Ask the county tax assessor for the figure as a rental and use that in the ratio.
Coastal counties face hurricane exposure, and Hurricane Katrina in 2005 reshaped how the Gulf Coast is insured. Premiums and wind deductibles are typically higher there, and some properties need wind coverage from a separate source.
Inland Mississippi sees tornadoes and severe storms, and properties near rivers and the Delta can sit in flood zones. Get a current quote and flood determination before you apply.
This example is illustrative and not a quote. An investor owns a DeSoto County rental appraised at $280,000 with $100,000 owed on the current loan. Rent is $2,050 a month and property taxes and insurance come to $380 a month.
At 75% LTV the new loan is $210,000. Paying off the $100,000 balance leaves $110,000 before closing costs. On a 30-year term, principal and interest is about $1,450, so the full payment is about $1,830 and the DSCR is about 1.12x, above the 1.0x standard minimum.
Put another way, rent would have to fall below about $1,830 a month before this loan dropped under 1.0x, a cushion of roughly $220 a month. Running the same check on your own numbers shows how much cash the rent can actually support.
| Item | Amount |
|---|---|
| Appraised value | $280,000 |
| Loan at 75% LTV | $210,000 |
| Existing loan payoff | $100,000 |
| Cash before closing costs | $110,000 |
| Principal and interest | About $1,450 |
| Taxes and insurance | $380 |
| Total monthly payment | About $1,830 |
| DSCR at $2,050 rent | About 1.12x |
Mississippi is a non-disclosure state, so sale prices are not part of the public record. Appraisers rely on MLS and agent data for comparable sales, which can be thin in rural areas and small towns.
Send recent leases, a list of improvements and any recent nearby sales you know of. In college towns, a rent schedule by bedroom helps the appraiser support market rent.
Seasoning varies by program. Some allow a cash-out soon after purchase; others want several months of ownership or limit the loan to the purchase price plus documented improvements until the property has been held longer. See our cash-out seasoning guide for how this usually works.
Two limits set your proceeds: 75% of appraised value, and the rent covering the new payment. Whichever is lower wins. On 5-8 unit properties and larger balances the maximum LTV can be lower and varies by program.
If you are unsure which limit applies to you, send the purchase date, rehab costs and rent through the form below and we will run both.
A complete file moves faster through appraisal and underwriting, and lets us quote accurately the first time.
Yes. We finance DSCR cash-out refinances on non-owner-occupied 1-8 unit rentals across Mississippi, up to 75% LTV, starting at $150,000.
No. Mississippi has no transfer tax or state mortgage tax. Costs are mainly attorney, title, appraisal and recording fees.
Some STR programs qualify on projected income, but the property must be allowed to rent nightly, and coastal wind insurance has to fit in the payment.
Homesteads are assessed at a lower percentage of value. Rentals fall in a higher class, which raises the bill.
It depends on the program. Some allow cash-out shortly after purchase; others require several months of ownership or limit the loan to cost plus documented improvements. Our seasoning guide covers the details.
Yes. LLC borrowers are standard on DSCR loans, and the members typically sign for the loan personally. Have the operating agreement, articles and EIN letter ready.
Yes. With no existing loan to pay off, proceeds are up to 75% of appraised value less closing costs, still subject to the rent covering the new payment.
No. The loan qualifies on the property's rent. You will still need a 620 or higher credit score, reserves and entity documents if the property is held in an LLC.
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