Most investors pulling equity out of a rental do it for one of two reasons: to fund their next purchase, or to free up capital already tied up in the one they own.
Pulling equity out of a property you already own is one of the more direct ways to fund a down payment on the next one. Because a DSCR cash-out refinance qualifies on the property’s rent rather than your personal income, growing a portfolio this way doesn’t run into the debt-to-income limits that can cap how many properties a conventional lender will finance for one borrower.
Not every reason to refinance is about buying another property. Investors also use a DSCR cash-out refinance to free up capital that’s otherwise sitting in home equity, for renovations, other investments, or paying down higher-cost debt.
A DSCR cash-out refinance doesn’t ask for your tax returns, W-2s, or pay stubs. It looks at whether the property’s rent covers its new mortgage payment.
MVP Funding places DSCR loans with lenders across our network rather than underwriting them ourselves, so exact credit score, ratio, and loan-to-value requirements vary by program. Generally, stronger rental income relative to the mortgage payment and a solid credit history open up more options. The most direct way to find out what you qualify for is to talk with us.
Personalized solutions to help you buy, sell, or invest in real estate with ease.
A quick prequalification shows you what you qualify for.
We gather the documents to move your file into underwriting.
Our team evaluates the full loan package.
Final documents go to the title company for closing.
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Pulling cash out of a property you still owe on carries real weight, both for the loan you’re taking on and for the equity you’re giving up to get there. Every DSCR file that comes through MVP Funding gets read by our loan officers directly.
If your rental property’s equity could be doing more, let’s find out what it qualifies for. A short application takes a few minutes, and a member of our team will follow up directly.
DISCLAIMER:
This is not a commitment to lend or extend credit. All loans are subject to credit approval. Information is subject to change without notice. Other restrictions may apply. VA loan benefits are subject to eligibility requirements determined by the U.S. Department of Veterans Affairs.
It replaces your rental property’s current mortgage with a larger one sized to what the property earns in rent, then pays you the difference in cash. DSCR stands for debt service coverage ratio: the property’s monthly rental income divided by its total monthly mortgage payment, including taxes and insurance. We’ll walk you through what your property’s numbers look like.
A standard cash-out refinance looks at your personal income, employment history, and debt-to-income ratio, the same way your original mortgage did. A DSCR cash-out refinance skips all of that and looks at the property’s rental income instead. Which one fits depends on the property and your personal financials, and we can help you compare.
Often, yes. A DSCR cash-out refinance doesn’t use your tax returns, W-2s, or pay stubs at all. It looks at whether the property’s rent covers its new mortgage payment. That’s what makes it work for self-employed owners whose write-offs leave their returns showing less than they actually bring in.
Your new loan pays off what you currently owe on the property, and you receive the remaining equity as cash. How much that comes to depends on the property’s appraised value, its rental income, and the program’s limits. Maximum loan-to-value varies by program, so the most direct way to find out is to talk with us.
A DSCR cash-out refinance qualifies on a property’s rental income, so it’s built for investment properties rather than the home you live in. If you’re refinancing a primary residence, or your personal income already supports the loan you want, our standard cash-out refinance is the simpler option.
