DSCR cash-out refinance guide for rental property investors pulling equity
DSCR + Cash-Out

DSCR Cash-Out Refinance Guide

Combining DSCR financing with cash-out — how the numbers work, what ratios matter, LTV limits, and common investor scenarios for pulling equity from rental properties.

Quick Answer

A DSCR cash-out refinance combines DSCR underwriting with equity extraction. The property's rent must cover the new, larger payment at the required DSCR (typically 1.15-1.25 for cash-out). LTV caps at 70-75%. The result: you access equity without personal income verification, while the property's cash flow supports the debt.

DSCR Cash-Out vs. Rate/Term Refinance

Feature Rate/Term DSCR Cash-Out DSCR
Purpose Lower rate or change term Access equity
Max LTV 75-80% 70-75%
Min DSCR 1.00-1.15 1.15-1.25
Seasoning 0-6 months 6-12 months
Rate Lower Slightly higher (0.25-0.5%)

Example: DSCR Cash-Out on a Charlotte, NC Rental

  • Current Value: $350,000 | Current Loan: $175,000
  • Cash-Out at 75% LTV: New loan $262,500
  • Cash to Borrower: $262,500 - $175,000 = $87,500 (less costs)
  • P&I on new loan at 7.5%: $1,835
  • PITIA: ~$2,350 | Market Rent: $2,600
  • DSCR: 2,600 ÷ 2,350 = 1.11 — meets 1.00 minimum, borderline for 1.15 programs

FAQs

Related Guides

Cash-Out Refinance for Rental PropertyHow Much Cash Out Can You Get?

Run Your Cash-Out DSCR Numbers

Estimate your DSCR with the new, larger payment before submitting.

DSCR CalculatorStart Pre-Check

Disclaimer: Educational only.

Last Updated: June 21, 2026