DSCR cash-out refinance loan to value limits can vary greatly by the lender. This limit is usually calculated based on a few factors, such as the borrower’s credit history, Debt Service Coverage Ratio, and the amount of equity in the home.
In general, borrowers are limited to a maximum LTV (Loan to Value) limit of 80% for rate-term transactions, and 75% for DSCR cash out. The loan amount and DSCR ratio of course play an important role in determining the max cash-out. *Please note, that DSCR refinance guidelines can adjust month to month. based on market conditions.
Refinancing into a DSCR loan can be a great option for investors looking to:
- Refinance out of a short-term hard money loan
- Fix and Flip refinance
- Cash Out equity to make needed renovations (no 12-month seasoning requirements like conforming loans)
- Use equity to invest in a new property
- Lower their monthly payments and create greater cash flow
Our streamlined process is designed to help real estate investors get the cash they need fast in order to keep growing their business. We offer fast approvals and flexible terms, connect with a loan advisor today about your situation by calling the number above or get started here