How does cash-out refinance work on a DSCR loan?

Cash-out DSCR refis are capped at 75% LTV typical (70% on no-ratio). 6-month seasoning required by most lenders. Same DSCR rules apply.

A cash-out DSCR refinance lets you pull equity from a stabilized rental without disturbing the property's rental cash flow. The mechanics: a new DSCR loan replaces your existing first mortgage at a higher principal balance, and the difference is paid to you in cash at closing. Standard caps: 75% LTV on cash-out (vs. 80% LTV on purchase), 70% on no-ratio cash-out. Seasoning: most lenders require 6 months from acquisition before a cash-out refi will fund (some require 12 months). Delayed financing exemption: a few programs allow cash-out within 6 months of all-cash purchase, capped at the original purchase price. Use of proceeds: DSCR cash-out is business-purpose, so funds must be used for investment activity (next property purchase, rehab on another property, business operations). Personal use of cash-out proceeds can technically violate the loan's business-purpose representation. DSCR ratio recalculated at refinance - the new payment must still cash-flow against current rents. Closing costs: 1.5-2.5 points typical, plus title, recording, and prepay reset.