DSCR Direct

Yes, you can absolutely get a DSCR loan on a property you already own. This is one of the most common uses of DSCR financing. Whether you want to lower your current rate, get rid of PMI, consolidate debt, or pull cash out of your equity, a DSCR refinance lets you do it based entirely on the property's rental income - no tax returns, no W-2s, no income verification of any kind.

Rate and Term Refinance

A rate and term refinance replaces your existing mortgage with a new one at a better rate, better terms, or both. With a DSCR rate/term refi, there is typically no seasoning requirement - you can refinance immediately after purchasing a property if you find a better deal. This is ideal if you originally financed with a hard money loan, a high-rate conventional loan, or an adjustable rate mortgage you want to lock in. The process is straightforward: the property gets appraised, the lender verifies the rental income covers the payment, and you close on your new loan.

Cash-Out Refinance

A cash-out refinance lets you tap into the equity you have built in your property. Most DSCR lenders require 3-6 months of seasoning before you can do a cash-out refi, meaning you need to have owned the property for at least that long. After the seasoning period, you can typically borrow up to 75-80% of the appraised value, pulling out the difference as cash. This cash can be used for anything - buying another property, making renovations, paying down other debt, or building reserves.

What You Need for a DSCR Refinance

The requirements are the same as any DSCR loan. You need a minimum 600 FICO score. The property must be an investment property generating rental income (or have market rent supported by an appraisal). You need a current lease or the appraiser will determine market rent. Cash reserves of 6-12 months are typical. And the property needs to be in rentable condition. You do not need to provide tax returns, pay stubs, W-2s, or any personal income documentation.

When Does a DSCR Refi Make Sense?

There are several scenarios where refinancing into a DSCR loan is the right move. If you bought with a hard money or bridge loan and need permanent financing, DSCR is the natural exit strategy. If your current rate is significantly higher than today's DSCR rates, a rate/term refi can improve your cash flow immediately. If you have built equity through appreciation or renovations and want to pull that capital out to reinvest, a cash-out refi lets you recycle your equity. And if you originally qualified with a conventional loan but are now hitting Fannie Mae's 10-property limit, moving existing properties to DSCR frees up conventional slots.

Properties with Existing Tenants

If your property already has a tenant in place, that actually makes the DSCR refinance easier. The existing lease provides documented rental income that lenders can use for the DSCR calculation. The appraiser will still determine market rent, but having an active lease at or above market rent strengthens your file. You do not need to disrupt your tenant during the refinance process - it is seamless from their perspective.

LTV Limits on Refinances

Maximum LTV on a DSCR refinance depends on the type. Rate and term refinances typically allow up to 80-85% LTV. Cash-out refinances are usually capped at 75-80% LTV, depending on the lender, property type, and your credit profile. Higher FICO scores and stronger DSCR ratios can unlock better LTV options. With hundreds of lenders competing, you can often find a program that fits your specific scenario.

How to Get Started

The fastest way to see your refinance options is to run your scenario at dscrdirect.net. Enter your property details, estimated value, desired loan amount, and FICO score. You will instantly see the lowest available rate from hundreds of lenders. No personal information required to check rates. When you are ready to move forward, submit your application at dscrdirect.net/apply for a same-day loan estimate.