Once a cash-out refinance passes $1 million, the question shifts from whether the rent covers the payment to how much leverage the rent can support. The answer often lands below the maximum, and choosing the right loan amount on purpose beats finding out at underwriting.
In short: LendingStreet offers DSCR cash-out refinances from $1M to $5M+ on 1-8 unit rentals and portfolios, qualified on the property's rent with no W-2s or tax returns. Cash-out goes up to 75% LTV, but maximum LTV can be lower on larger balances and 5-8 unit properties, so it varies by program. The standard minimum DSCR is 1.0x, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available.
Large cash-out loans come from three kinds of owners. The first holds a high-value single property: a fourplex in San Diego, a brownstone rental in the New York suburbs, a waterfront home in South Florida, or a mountain-town rental in Colorado. Appreciation has built equity that only a large loan can reach.
The second owns a 5-8 unit building. In Chicago, Boston or Los Angeles, a six-unit building can be worth well over $1.5 million, and a refinance after renovation or lease-up can return much of the original investment.
The third owns several rentals. Ten single-family homes in the Atlanta, Charlotte or Phoenix suburbs can be refinanced together through a blanket portfolio loan, producing one large cash-out loan from many modest properties.
DSCR cash-out goes up to 75% LTV, but larger balances get more review and the maximum can be lower, which varies by program. 5-8 unit buildings can also carry a lower maximum than 1-4 unit homes.
The DSCR side often limits the loan before the LTV does. In high-cost coastal markets, rents have not risen as fast as values, so a property worth $2 million may support a 1.0x DSCR only at a loan below 75% of value. In lower-cost markets the opposite is common: the rent supports more than the value allows.
Taxes and insurance swing the math. A rental in Texas or New Jersey with a large property tax bill, or a Florida home with high wind and flood premiums, will support less debt than a similar property with lower carrying costs.
An investor owns a fourplex in coastal Southern California worth $2,000,000, with an existing loan of $700,000. The four units rent for $13,600 per month combined. Estimated property taxes are about $1,400 per month and insurance about $350 per month.
At 70% LTV the new loan is $1,400,000, which pays off the existing loan and returns about $700,000 before closing costs. Estimated principal and interest is about $9,550 per month, so total housing expense is about $11,300. Rent of $13,600 divided by $11,300 gives a DSCR of about 1.20x.
The table shows the same property at three loan amounts. Every option clears 1.0x here, but the margin shrinks as the loan grows, and on a larger balance a program may cap the LTV below 75%.
This example is illustrative and not a quote. Taxes, insurance and the maximum LTV for your property are confirmed during underwriting.
| Loan level | Loan amount | Cash before costs | Est. principal and interest | Total monthly expense | DSCR |
|---|---|---|---|---|---|
| 75% LTV | $1,500,000 | $800,000 | $10,233 | $11,983 | 1.13x |
| 70% LTV | $1,400,000 | $700,000 | $9,550 | $11,300 | 1.20x |
| 65% LTV | $1,300,000 | $600,000 | $8,868 | $10,618 | 1.28x |
Cash-out seasoning, meaning how long you must own the property before taking cash out against its current value, varies by program. Some programs use the appraised value soon after purchase or renovation; others use the purchase price plus documented improvements until a set period has passed. Our seasoning guide covers the details.
For a $1M+ refinance, also allow time for a full appraisal. Large and unusual properties, such as a luxury home with few nearby sales or a mixed group of rentals, can take longer to value.
The structure depends on what you own.
California: equity built over many years makes large cash-out common. Rent rules in some cities limit how quickly rents can rise, so underwriting looks at in-place leases rather than hoped-for rents.
Florida: insurance is often the deciding cost. Get current wind and flood quotes before choosing a loan amount, because a premium increase can move DSCR more than a change in rent.
Texas: no state income tax but high property taxes. Investors do not get homestead exemptions on rentals, so the tax line on a $1.5M property is large and should be estimated from the current bill.
New York and New Jersey: property taxes are high in both. New York also has a mortgage recording tax that can add meaningfully to closing costs on a large refinance. Confirm local costs with your title company.
Because these are business-purpose loans, the cash is typically used for investment: buying the next rental, funding a renovation, paying off higher-cost short-term debt, or building reserves across a portfolio.
Many investors use a large cash-out to fund down payments on two or three more rentals at once. If that is the plan, check that the remaining DSCR on the refinanced property leaves room for vacancies and repairs.
Use the form below or call (877) 298-1001. Share the estimated value, current loan balance, rent roll, tax bill and insurance premium, and say how much cash you want. We can show you the loan amount the rent supports and how it compares with the maximum LTV.
For state-specific costs, see our cash-out refinance pages for California, Florida and Texas, and the jumbo DSCR guide for purchase and rate-and-term options.
Cash-out goes up to 75% LTV, but larger balances and 5-8 unit properties can have a lower maximum. The exact figure varies by program and property.
DSCR loans start at $150,000 with no stated maximum. Loans of $5M and above are possible, with more review as the balance grows.
No. DSCR loans qualify on the property's rent, not your personal income, so W-2s and tax returns are not used to qualify.
The standard minimum is 1.0x, meaning rent covers principal, interest, taxes, insurance and any HOA dues. Programs below 1.0x exist on some properties, but a large loan usually works best with some margin above 1.0x.
Yes. A blanket portfolio loan covers 5 or more investment properties under one loan, qualified on combined cash flow, with release provisions when a property sells.
Seasoning varies by program. Some use the current appraised value early, others limit you to cost plus improvements until a set period has passed.
Yes. LLC borrowers are standard on DSCR loans, and holding title in an LLC is common for large rentals and portfolios.
No. This guide covers 1-8 unit residential rentals. Buildings with 9 or more units are commercial and covered on our multifamily loan page.
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