Cash-out refinance on an investment property: up to 75% of value, qualified on the rent.

Multiply the appraised value by the lender's maximum cash-out LTV — 75% at most lenders in October 2026, 80% at a few — then subtract your current payoff and closing costs. On a $400,000 rental with a $160,000 balance, 75% is $300,000, which leaves about $131,000 after $9,000 of costs. The rent must also cover the new, larger payment.

Usually 90 days. Before then, lenders such as Roc and Civic cap the loan at 80% of what you paid plus documented improvements rather than lending on the new appraised value. There are exceptions: Griffin and Defy advertise no-seasoning options, Kiavi allows cash-out sooner on free-and-clear properties, and Lima One waives seasoning when it holds your rehab or bridge loan.

Usually 1.00, measured on the new, larger payment: rent at least equal to principal, interest, taxes, insurance and HOA dues on the new loan. At 1.25, rent is 25% more than that payment. Published minimums run from 0.75 to 1.05 across programs, and Defy requires 1.00 or higher on a cash-out. On a $2,573 payment, 1.00 takes $2,573 of rent and 1.25 takes $3,216.

A rate-and-term refinance pays off your existing loan and closing costs and returns little or nothing; a cash-out refinance puts money in your pocket. Easy Street draws the line at $2,000: more than that back is a cash-out. The label matters because leverage differs — 80% for rate-and-term against 75% for cash-out at Easy Street, Roc, Civic and LendingOne — and cash-out usually prices higher.

Yes. DSCR lenders lend to LLCs, and Lima One, Roc and Civic require an entity. Expect to sign a personal guarantee and provide the LLC's formation documents. If the property is titled in your own name today, moving it into an LLC is a legal and tax step that can affect your existing loan, so talk to an attorney and a CPA before you sign a deed.

A cash-out refinance on a rental that qualifies on the property's rent instead of your income. The lender divides monthly rent by the new loan's full payment — principal, interest, taxes, insurance and HOA dues. If the ratio clears its minimum, usually 1.00, and the loan fits under its LTV cap, you can close without tax returns or pay stubs.

Yes. This is often called delayed financing. Kiavi allows cash-out on free-and-clear properties before the usual 90 days, and Angel Oak lists delayed financing as an eligible transaction. Inside the seasoning window, expect the loan to be limited by what you paid rather than the appraised value, so keep your closing statement and rehab receipts.

Run the payment difference, not the headline rate. Replacing a $160,000 balance at 3.5% with a $300,000 loan at 7.5% raises principal and interest from about $801 to $2,098 a month. That $1,297 increase buys $131,000 of cash — the same payment as a 30-year loan of $131,000 at about 11.5%. If the cash won't earn more than that, price a second lien instead.

Yes. DSCR lenders refinance 2–4 unit rentals and count the rent from every unit against one payment. Leverage is often lower: Defy caps cash-out at 80% on a single-family rental and 75% on 2–4 units, and Fannie Mae's conventional limits are 75% and 70%. Price can be higher too — one wholesale rate sheet charged 0.75 points more for 2–4 units at 70–80% LTV.

Usually, but the rent counts for less. Roc and Civic count a vacant unit at 90% of the appraiser's market rent, so a house that would rent for $2,950 qualifies on $2,655 — a 1.03 DSCR on a $2,573 payment instead of 1.15. Signing a lease before the appraisal is the simplest fix. A lease above market won't help much at Kiavi, which caps it at 110% of market rent.

Mostly, it depends on your current rate. A HELOC leaves a low-rate first mortgage untouched, but the credit unions we checked capped combined borrowing at 70–75% of value at a variable rate, and fewer lenders offer one on investment property. A cash-out refinance reaches 75–80% at a fixed rate but reprices your whole loan at today's rates.

Budget for closing costs, a cash-out price adjustment and any penalty on the old loan. The example on this page assumes 3% of the new loan, or $9,000 on $300,000. One wholesale rate sheet charged 1.000 point for cash-out at 70–75% LTV with a 700+ score — another $3,000 if paid up front. A step-down penalty on the old loan can add 3%–4% of its balance.

DSCR lenders rarely publish a loan-age rule — Fannie Mae's conventional cash-out is the exception, requiring the first mortgage being paid off to be at least 12 months old — so the main cost is the prepayment penalty on the loan you just took. On a 5-4-3-2-1 step-down, refinancing a $300,000 loan in year 2 costs about $11,900. Kiavi lists no penalty after year 3.

No. DSCR cash-out refinances are business-purpose loans for investment property that neither you nor a family member lives in. If you live in the home, or a relative does, you need a residential refinance or home equity loan instead, with its own income and occupancy rules. A rental you've moved out of and lease to a tenant can qualify as an investment property.

Generally, loan proceeds are borrowed money, not income. How the interest is treated for tax purposes depends on what you use the cash for — another rental, repairs or something personal — and that is a question for your CPA. Keep a clear record of where the proceeds go from the day they arrive.