A DSCR refinance replaces your existing mortgage on a rental property with a new DSCR loan — either to lower the rate (rate-and-term) or pull out equity (cash-out). No tax returns, no W-2s, no personal DTI — the property's rent qualifies the loan.
Rate-and-term DSCR refinance: up to 80% LTV on 1-4 unit residential, 75% LTV on 5-10 unit multifamily. Requires 6 months of seasoning on the current loan for most programs. Ideal for investors who bought with hard money or a high-rate DSCR and want to lock in permanent financing.
Cash-out DSCR refinance: up to 75% LTV, 6-month title seasoning typical (some programs allow delayed financing with no seasoning if you paid cash). Cash-out is the engine of the BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — because it lets you pull your original capital back out of a stabilized property and redeploy into the next acquisition.
Both refinance types are business-purpose loans closed in an LLC, exempt from ATR rules, and available on second homes converted to rentals, inherited rentals, and short-term rental properties. Get a refinance quote or run your numbers on the calculator.