Seattle, Tacoma and Spokane have seen strong appreciation, and many Washington investors hold equity that dwarfs their original down payment. A DSCR cash-out refinance turns it into cash using the property's rent.
In short: Yes, LendingStreet finances DSCR cash-out refinances on 1 to 8 unit investment property in Washington, up to 75% LTV, qualifying on the property's rent rather than your tax returns. The rent has to cover the new payment, including taxes and insurance, at the program minimum, which is 1.0x on standard programs, and the minimum credit score is 620. Washington's new statewide limits on rent increases and the gap between high values and rents are the two factors that most often cap a Washington cash-out.
You borrow against the rental's current value, retire the existing mortgage and keep the rest. The new loan is capped at 75% of appraised value on a cash-out, compared with up to 80% on a purchase. It works on 1 to 8 unit residential rentals, from a single-family home to a small 5-8 unit building, held in your name or an LLC.
The underwriter divides the rent by the new full payment, including taxes, insurance and any association dues. That ratio needs to be at least 1.0x on standard programs, and the post-cash-out payment is the one that counts. No W-2s or tax returns are involved, and the minimum credit score is 620.
If the ratio falls a little short at full leverage, a smaller loan or a sub-1.0 DSCR program can bridge the gap. Running the math at two or three loan amounts before you apply avoids surprises.
The Puget Sound region, including Seattle, Bellevue, Tacoma, Everett and the surrounding suburbs, holds the largest share of the state's rental housing, from older single-family homes and duplexes to newer townhomes. Spokane offers lower prices and steady rents. Vancouver benefits from proximity to Portland, and the Tri-Cities and Yakima have their own regional demand.
In Seattle and Bellevue, values are high relative to rent, so a full 75% LTV cash-out is often tighter than in Spokane or Tacoma.
Washington's real estate excise tax (REET) is charged on sales, at graduated state rates plus local portions. A refinance where ownership does not change generally does not trigger REET. Washington has no state mortgage tax. Refinance costs are mainly title insurance, county recording fees, escrow, the appraisal and lender costs.
If you are transferring the property into an LLC as part of the refinance, ask your escrow or title company whether REET applies to that transfer.
Washington property taxes are moderate as a share of value, and counties revalue regularly. Because values are high in the Puget Sound area, the dollar amount can still be significant. Washington has no state income tax, which shifts more of the burden to property, sales and excise taxes.
A refinance does not trigger revaluation. Underwriting uses the current bill, so budget on the latest figure.
Washington adopted statewide limits on annual rent increases in 2025, with exemptions for newer buildings, and Seattle has its own tenant protections, including just-cause eviction rules and notice requirements. Underwriting uses actual lease rents, so do not count on an increase above what the law allows.
Earthquake coverage is usually a separate policy and optional on many programs, but older unreinforced buildings can raise questions. Seattle also licenses short-term rentals and limits how many units one operator can run. Confirm current rules before relying on nightly income.
This example is illustrative and not a quote. An investor owns a duplex in Tacoma appraised at $640,000 with an existing loan of $300,000. Rent is $3,900 a month, and taxes and insurance run $720 a month.
At 75% LTV the new loan is $480,000, leaving $180,000 after the payoff and before closing costs. On a 30-year amortization, principal and interest is about $3,274, so the total payment is about $3,994 and the DSCR is about 0.98x, below the 1.0x standard minimum.
At 70% LTV the loan is $448,000 and principal and interest is about $3,056. The payment drops to about $3,776, the DSCR rises to about 1.03x, and the investor still receives $148,000 before closing costs.
At 75% LTV the ratio sits just under 1.0x. At 70% it clears the minimum. With statewide rent limits in place, sizing to today's rents is the realistic approach.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Appraised value | $640,000 | $640,000 |
| New loan | $480,000 | $448,000 |
| Existing loan payoff | $300,000 | $300,000 |
| Cash before closing costs | $180,000 | $148,000 |
| Monthly payment (P&I, taxes, insurance) | About $3,994 | About $3,776 |
| DSCR at $3,900 rent | About 0.98x | About 1.03x |
How soon you can cash out depends on the program. Some programs permit it shortly after purchase, and others use the lower of appraised value or cost basis until the property is seasoned. If you finished a renovation recently, keep invoices and photos, since they support the higher value.
Beyond seasoning, three things set the final number: the 75% LTV ceiling, the rent covering the new payment at the program minimum, and closing costs. Maximum LTV can be lower on 5-8 unit properties and larger balances; it varies by program.
The proceeds are yours to use for business purposes. Common uses include:
A complete file gets a faster, clearer answer. Have these ready when you reach out.
Yes. LendingStreet offers DSCR cash-out refinances on non-owner-occupied 1 to 8 unit rentals in Washington, up to 75% LTV, qualifying on the property's rent.
Start with 75% of the appraised value, subtract the payoff on your current loan and closing costs. Then check that the rent covers the new payment at 1.0x or the program minimum.
Generally no. REET applies to sales. A refinance with no change in ownership does not trigger it, and there is no state mortgage tax.
Underwriting uses actual lease rents. Because annual increases are limited on many rentals, size the cash-out to current rents rather than a planned increase.
Only if it is licensed and operating legally. Seattle limits STR operators to a set number of units. If it qualifies, some programs use revenue.
Seasoning varies by program. Some allow cash-out soon after purchase; others want several months of ownership or cap the loan at purchase price plus documented improvements.
Yes. DSCR programs cover 1 to 8 units. Maximum LTV can be lower on 5-8 unit properties, so the cash-out may be smaller than on a single-family home. It varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental, not your residence.
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