Rate and structure
Rate-and-term refinance
Replace the current loan with a different term, structure, or payment. There is typically no, or limited, cash returned to the borrower, making this the simpler lane for many refinance plans.
Investment property refinance
DSCR Refinance
Refinance an investment property on the rental income it produces instead of your tax returns—whether you are lowering a payment, exiting a short-term loan, or pulling cash out for the next deal.
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Get Pre-QualifiedSee the DSCR math
Pre-qualification is a preliminary inquiry only — it is not an approval, pre-approval, rate quote or commitment to lend.
A new look at an existing asset
Let the rental’s current income shape the next loan conversation.
Start with the simple version
Replace the old loan with a plan that fits the property now.
A DSCR refinance replaces an investment property’s existing loan with new financing sized around the property’s rent versus its proposed payment. The review centers on how the asset performs, not primarily on your personal tax returns.
Investors usually reach for one when the current rate or term needs to change, a hard money or bridge loan is coming due, or equity has built up and could support the next move. A refinance is a new loan: it requires a new appraisal, new closing costs, and income that can support the new payment.
Choose the outcome first
Two reasons investors refinance.
The purpose of the refinance affects the loan size, the documents, and the leverage the lender can consider. Both paths still depend on the property’s income supporting the new payment.
Equity and liquidity
Cash-out refinance
Replace the current loan with a larger one and receive the difference at closing, subject to typical loan-to-value limits. Investors often consider this for a next purchase, renovations, or higher-cost debt.
A practical starting point
When a DSCR refinance makes sense.
Leaving a hard money or bridge loan
Move from short-term financing toward a longer-term DSCR structure once the property and rent can support the new loan.
Improving the payment
Revisit a property whose rent-to-payment relationship is strong but whose current loan no longer fits the plan.
Putting equity to work
Consider cash out when built-up equity could help fund another acquisition, repairs, or a portfolio objective.
Changing the ownership structure
Explore moving a property from your personal name into an LLC as part of a broader refinance and title plan.
Refinancing a cash purchase
Replace some of the capital tied up in a property bought without a loan, subject to the program’s cash-out and seasoning rules.
Working around income documentation
A property-income-based review may be useful when personal income documents are the obstacle in a conventional refinance.
The refinance math
How lenders size a refinance.
Three property-level questions do most of the early work: what is the property worth today, can its income support the new payment, and how much debt does the value support? Credit, reserves, title, and the existing payoff then fill out the picture.
A new appraisal sets today’s value
The refinance uses a new appraisal to establish current market value and, where applicable, support the market-rent analysis.
Rent is tested against the new payment
The property’s market rent divided by the proposed monthly debt service produces the DSCR ratio. Many DSCR lenders look for roughly 1.20 and up as a rule of thumb, but the target varies by lender and deal.
LTV limits the loan size
Loan-to-value compares the new loan with the appraised value. Typical guidelines often land around 75% LTV, with lower leverage commonly used for cash-out; actual limits vary.
The numbers show what can come back
Value, DSCR, LTV, credit, reserves, and the payoff amount come together to determine the possible loan amount and, for cash out, what may remain for the borrower.
In a cash-out refinance, the new loan first pays off the old balance and the costs of the transaction. Only then can the remaining amount, if any, be considered cash back to the borrower.
Get the file moving
What’s typically required.
Every lender and transaction has its own checklist. These are practical items to gather for an initial DSCR refinance conversation.
- Payoff detailsCurrent loan statement and the information needed to request a payoff.
- Rent evidenceCurrent rent roll, lease agreements, or other market-rent support.
- Property standingProof that insurance is in place and property taxes are current.
- Borrower profileCredit and accessible reserves as required by the lender and transaction.
- Entity recordsFormation and ownership documents when the property is held in an LLC.
- Appraisal accessCooperation with the appraiser so the property can be valued again.
Entity ownership
Refinancing a property held in an LLC.
When an eligible LLC owns the property, the entity generally takes the new loan and continues to hold title. The lender typically asks for formation, ownership, operating, and authorization documents, along with information on the individuals connected to the entity.
A personal guarantee is typically still part of the deal even when the LLC is the borrower. Entity structure and title transfers can have legal or tax implications, so get advice on those issues before changing title. Read more about DSCR loans for LLCs
From current loan to new funding
How it works.
Tell us about the property and current loan
Share the address, rent, payoff, value, and whether you want terms changed or cash out.
Get a quote and terms
Review a possible structure, estimated costs, and the factors that could change it.
Appraisal and underwriting
The new value, rent, title, credit, reserves, and supporting documents move through review.
Close and fund
The old loan is paid off at closing, and any approved proceeds are distributed through the closing process.
Questions, answered
DSCR refinance FAQ.
Can I refinance an investment property without income verification?
Often, a DSCR refinance uses the property’s market rent and proposed payment as the main income test instead of personal tax returns, pay stubs, or employment income. It does not mean the file has no documentation: credit, reserves, title, the property, and the existing loan still receive review. Guidelines vary by lender and deal.
Can I pull cash out with a DSCR refinance?
Cash-out refinancing may be available when the appraised value, DSCR, loan-to-value, credit, reserves, and program rules support it. The new loan pays off the existing debt and closing costs first, so the amount left for the borrower depends on the complete file. Ask your own CPA about the tax treatment of cash-out proceeds for your situation.
How soon can I refinance a property I just bought?
Timing often depends on how the property was acquired, whether the new loan is rate-and-term or cash-out, and the lender’s seasoning rules. A recent purchase, cash purchase, renovation, or bridge loan may call for specific documentation or a waiting period. The applicable rule is set by the lender and transaction, not by a universal DSCR timeline.
Can I refinance a property that is in my personal name into my LLC?
It may be possible to refinance into an eligible LLC when the title, entity documents, ownership, guarantors, and lender requirements line up. Moving title can have legal, insurance, and tax implications, so discuss the structure with your attorney and CPA before making a change. The LLC generally takes the new loan, while a personal guarantee is typically still part of the deal.
Can I refinance out of a hard money or bridge loan?
That is a common reason investors explore a DSCR refinance. The property generally needs to support the new payment, and the lender will review the payoff, current value, rent, condition, seasoning, credit, and reserves. A new appraisal and closing process are still required, and the refinance is not automatic.
Keep exploring
Explore more DSCR loan topics.
DSCR loans — the complete guide
Start with the full overview of DSCR financing and find the right path for your deal.
75% LTV DSCR loans
Understand how high leverage changes equity and qualification.
DSCR loans for first-time investors
A plain-English guide to financing your first rental property.
DSCR loans for LLCs
See how entity borrowing, guarantees, and title typically fit together.
Multifamily DSCR loans
Property-income-based financing for apartments and 5+ unit assets.
Commercial DSCR loans
Explore financing for larger income-producing properties.
Residential DSCR loans
Review options for 1–4 unit rental properties.
No income verification DSCR loans
Understand how property income can lead the review.
DSCR loans in Dallas
Local context for Dallas–Fort Worth investment properties.
DSCR loans in Texas
Investor financing across Texas from a Dallas-based team.
DSCR loan calculator
Compare rental income with the proposed payment.
Loan terms & definitions
Translate DSCR, LTV, and other loan language.
Contact us
Bring us the property and refinance plan you are considering.
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Get a quote on your deal.
Share the property, current loan, rent, and refinance goal so the conversation starts with the right facts.