Cash-Out Refinance Requirements
AAPL Member · Direct Lender Since 2016 · NMLS #1979189
A cash-out refinance is how investors turn trapped equity into their next down payment, and on an investment property the requirements look nothing like a primary-residence refi. There’s no scrutiny of your salary, no debt-to-income ceiling, and — critically for the BRRRR strategy — no seasoning requirement after a renovation. An investment-property cash-out refinance replaces your existing loan (or pays off free-and-clear equity) with a new, larger loan, and hands you the difference in cash. Because it’s underwritten as a business-purpose, income-property loan, the requirements center on the property’s equity and rent, not your personal finances. Here’s what it takes to qualify, from a direct lender funding cash-out refinances since 2016.
Equity: the First Requirement
You can’t pull cash you don’t have, so the starting point is equity in the property. We typically lend up to 75% of the appraised value on a cash-out refinance of an investment property, and up to 80% on some scenarios. That LTV ceiling sets your number: the cash you can take out is the difference between your new loan (at up to 75–80% of value) and what you currently owe. The more equity you hold — whether from a down payment, paid-down principal, appreciation, or a value-add renovation — the more you can pull. Estimate it on our hard money loan estimator.
The Property's Income Qualifies the Loan
A cash-out refinance on a rental is most often structured as a DSCR loan, which means the new loan qualifies on the property’s rent, not your income. We divide the rent by the new mortgage payment to get the DSCR; a ratio of 1.0 or better earns the best terms, and there’s no minimum DSCR, so a sub-1.0 property can still refinance with adjusted terms. The practical requirement is that the property’s income supports a fundable new payment — which, since you’re often lowering leverage relative to a purchase, is usually very achievable.
No Seasoning After a Renovation — the BRRRR Engine
This is the requirement that isn’t there, and it’s the most valuable. Many lenders make you “season” a property — hold it six or twelve months at the old value — before they’ll refinance at the new, higher value. We have no seasoning requirement after a renovation. If you bought and rehabbed a property with a hard money or fix and flip loan, you can refinance at the new appraised value as soon as the work is done and the property is leased, pulling your original capital straight back out. That’s the entire mechanism behind BRRRR — buy, rehab, rent, refinance, repeat.
Credit, Entity, and Reserves
We pull a hard credit report, but there’s no minimum credit score — a weaker score adjusts your rate and leverage rather than disqualifying you. Most investors refinance in an LLC, fully supported on these business-purpose loans, and a loan in your LLC’s name generally won’t appear on your personal credit report. As with any long-term rental loan, we want to see reserves so the property can absorb a vacancy or repair after you’ve pulled equity out.
Cash-Out Refinance Requirements at a Glance
Cash-Out Refinance Requirements at a Glance
What You'll Need to Provide
Expect to provide proof of ownership and your current loan payoff, a lease or rent estimate supporting the property’s income, an appraisal to establish current value, your entity documents, and proof of reserves. No tax returns or pay stubs. Our loan document checklist covers the full list, and our cash-out refinance program page explains how the cash-out fits into a growing portfolio. Current pricing is on our cash-out refinance rates page.
Frequently Asked Questions
Enough to leave the new loan within our LTV ceiling — typically up to 75% of the appraised value (80% in some scenarios). The cash you can take is the difference between that new loan and what you currently owe, so the more equity you hold, the more you can pull.
Not after a renovation. We let you refinance at the new appraised value as soon as the rehab is complete and the property is leased, rather than forcing you to hold it at the old value for months. This no-seasoning policy is what makes the BRRRR strategy work.
No. An investment-property cash-out refinance is typically structured as a DSCR loan that qualifies on the property’s rent, so there are no tax returns, W-2s, or debt-to-income limits. The property’s income carries the underwriting.
There’s no minimum credit score. We pull a hard credit report, but a lower score adjusts your rate and leverage rather than disqualifying you. The property’s equity and income do the heavy lifting.
Yes, and most investors do. These are business-purpose loans secured by the property, so refinancing in an LLC is fully supported and usually recommended for liability protection. A loan in your LLC’s name generally won’t appear on your personal credit report.
Ready to free up your equity?
Tell us the property, the balance, and the rent. We qualify the property’s cash flow — not your tax returns — and there’s no seasoning after a renovation.