Cash Out Refinance for Investment Properties DSCR or Asset-Based, No Tax Returns
Pull equity from your rental property through a cash out refinance investment property program. Hawk Funding Group offers DSCR cash-out refinances, investment property refinance solutions, and asset-based options with up to 75% LTV and closings in as little as 10–14 days.
DSCR Cash-Out Refinance for Real Estate Investors
How Equity Is Calculated
A cash out refinance investment property loan starts with an appraisal to determine current value. The new loan amount is based on the property’s LTV.
Cash-Out Formula: (Appraised Value × 75%) − Current Mortgage Balance = Maximum Cash Out
Your existing mortgage is paid off with the new loan proceeds, and the remaining funds are released directly to you at closing.
Why DSCR Qualification Is Better for Investors
Traditional investment property refinance programs often require tax returns, W-2s, and debt-to-income calculations that can limit investor eligibility. A DSCR cash out refinance qualifies using rental income instead of personal income, making it easier for many real estate investors to access capital.
PITIA = Principal + Interest + Taxes + Insurance + HOA
A DSCR of 1.20x means the property generates roughly 20% more rental income than its monthly debt obligations.
No W-2. No Tax Returns. No Problem.
Most DSCR refinance programs do not require W-2 income verification, personal tax returns, pay stubs, or employment verification. Borrowers typically need a property appraisal, lease agreement or market rent analysis, title review, and qualifying credit profile.
What Can You Use the Proceeds For?
Cash out refinance proceeds are generally unrestricted and can be used to acquire rentals, fund renovations, pay off debt, or expand a portfolio. Many investors use a refinance investment property strategy to unlock equity while maintaining ownership of a performing asset.
Other Loan Programs
What Can You Do With Cash-Out Proceeds?
Your cash out refinance proceeds can be used for acquisitions, renovations, debt consolidation, and portfolio growth with few restrictions.
Use equity from a cash out refinance investment property loan to fund the down payment on your next rental, DSCR purchase, or multifamily acquisition.
Pull equity from a performing rental property to finance your next renovation project without depleting reserves or relying on expensive short-term capital.
Replace costly bridge or hard money debt with a long-term investment property refinance and improve monthly cash flow.
Use cash out refinance funds for upgrades, repairs, and value-add improvements that can increase rents, occupancy, and property value.
Comparing Your Cash-Out Options
| Feature | DSCR Cash-Out Refi | Traditional Cash-Out Refi |
HELOC | Asset Based/Hard Money Cash-Out |
|---|---|---|---|---|
| Qualifying Method | Rental Income (DSCR) | Personal income / DTI | Personal income / DTI | Equity / asset-based |
| Tax Returns Required | No | Yes (2 years) | Yes (2 years) | No |
| Max LTV | 75% | 70–75% | 70–80% | 65–70% |
| Loan Term | 30 years | 15–30 years | 10-yr draw / 20-yr repay | 6–24 months |
| Close Time | 14–21 days | 30–45 days | 30–45 days | 5–10 days |
| Rate Range | From 6.25% | Market rate (varies) | Prime + margin | 9–13% |
Ready to Unlock Cash From Your Property?
Tell us about your property, goals, and timeline and our team will get to work immediately. Depending on the deal details, we’ll respond with cash out refinance options tailored to your exact scenario within 1-3 business days so you can compare your choices and move forward with confidence.
Get Answers Before You Apply
How much equity can I pull out?
You can pull out equity up to 75% of the property's appraised value, minus your current mortgage balance. For example, if your property appraises at $500,000 and you owe $200,000, you could access up to $175,000 in cash out ($375,000 at 75% LTV minus your $200,000 payoff). Some highly seasoned borrowers with strong DSCR may qualify for slight variations — ask your loan officer for a scenario analysis.
Do I need to show personal income?
No. Our DSCR cash-out refinance does not require W-2s, tax returns, pay stubs, or employer verification. Qualification is based entirely on the property's Debt Service Coverage Ratio — the relationship between the property's gross rental income and its total monthly debt service (principal, interest, taxes, insurance, and any HOA dues). As long as the DSCR is 1.0x or higher, personal income is not a factor.
What is the minimum DSCR for a cash-out refinance?
The standard minimum DSCR for a cash-out refinance is 1.20x. This means the property's gross monthly rent must be at least 1.2 times the total monthly debt service on the new loan. A DSCR of exactly 1.20x means the property generates $1.20 in rental income for every $1.00 of debt obligation. We do have options for properties with DSCR ratios as lows as .80x. They may still qualify at slightly higher rates or with additional equity — discuss your specific scenario with a loan officer.
How long does the process take?
Most DSCR cash-out refinances close in 14–21 business days from completed application. The timeline depends primarily on appraisal scheduling (typically 5–7 business days) and title search. Because we don't collect income documentation, our processing time is significantly faster than conventional lenders. To expedite your closing, have your current mortgage statement, lease agreement, property insurance, and ID ready at application.
Can I cash out a recently purchased property?
The standard seasoning requirement is 6 months of title ownership before a cash-out refinance is eligible. If you purchased the property within the last 6 months, you may qualify for a "delayed financing" exception — particularly if you purchased the property with cash and are seeking to pull your capital back out. Contact our team to discuss your specific situation and whether a delayed financing scenario applies to your transaction.
What's the difference between a DSCR and an asset-based cash-out refinance?
A DSCR cash-out qualifies on the property's rental income — the rent must cover the new loan payment at a ratio of 1.0–1.20x or higher. It offers the best long-term rates and 30-year terms, ideal for stabilized rentals. An asset-based cash-out qualifies on the property's equity and your overall liquidity to service the debt, regardless of the property's current rental income. It's faster, more flexible, and structured short-term — ideal for non-income-producing properties, transitional assets, or situations where speed matters more than securing a permanent rate. Submit your scenario and we'll tell you which path gives you more cash at better terms.
Can I get a cash-out refinance if my property doesn't generate rental income?
Yes — this is exactly what an asset-based cash-out is designed for. If your property is vacant, mid-renovation, held for appreciation, or otherwise not producing the rental income a DSCR refinance requires, we can qualify you on the property's value and your demonstrated ability to service the debt from your broader liquidity. Leverage typically runs up to 65–70% of value, and these loans close in as little as 7–10 days. Many investors use an asset-based cash-out as a short-term bridge, then refinance into a permanent DSCR loan once the property stabilizes.
Can I pull equity without refinancing my existing mortgage?
Yes. If you have a favorable rate on your existing first mortgage and don't want to refinance it, a second trust deed lets you access your equity through a second-position loan that sits behind your current mortgage — leaving your first loan untouched. This is often the smartest option when your existing first-mortgage rate is well below current market rates.