This shows how much cash a DSCR cash-out refinance could put in your hand: the new loan is the lower of what the value allows and what the rent can carry, minus your payoff and closing costs.
Short answer: on a DSCR cash-out refinance the new loan is commonly the lower of two limits: appraised value × the cash-out LTV (often 70–75%, up to 80% with 720+ credit on select programs) and the largest loan whose PITIA the rent covers at the lender’s DSCR. Cash in hand = that loan − payoffs − closing costs.
Run your cash-out numbers
Every result updates as you type. The defaults are a rental appraised at $400,000 with a $190,000 payoff and $3,400 a month in rent, refinanced at 75% LTV with an example 7.5% rate on a 30-year schedule.
Typical ranges for business-purpose DSCR lending on 1–4 unit rentals. LTV, DSCR minimums, rates and costs vary by lender, credit, loan size and property.
How the calculator works it out
A cash-out refinance has to pass two tests at once. The value test caps the loan at a percentage of the appraised value. The rent test caps it at the size whose monthly payment the rent still covers. Whichever is lower sets the realistic loan.
- Value limit = appraised value × maximum cash-out LTV.
- PITIA = principal and interest on the new loan + annual taxes ÷ 12 + annual insurance ÷ 12 + monthly HOA. With the interest-only box ticked, the payment is loan × rate ÷ 12.
- DSCR = monthly rent ÷ PITIA. The results compare it with 1.00 (rent equals the payment) and 1.25 (rent is 125% of it).
- Rent limit = the largest loan whose PITIA equals rent ÷ target DSCR. The calculator shows it at 1.00 and 1.25 and uses your target for the realistic loan.
- Realistic loan = the lower of the value limit and the rent limit. Cash in hand = realistic loan − payoff(s) − closing costs. Equity remaining = value − realistic loan.
The DSCR formula matches the DSCR calculator; this page adds the value limit and the payoff so you can see the cash.
Worked example: the default rental
A single-family rental appraised at $400,000 with a $190,000 payoff, $3,400 a month in rent, $4,800 a year in taxes, $1,800 a year in insurance and no HOA. The lender allows 75% LTV, the example rate is 7.5% on a 30-year schedule, closing costs are 2% of the loan and the target DSCR is 1.00. Illustrative assumptions, not a quote.
| Value limit: $400,000 × 75% | $300,000 |
| Principal and interest: $300,000 at 7.5%, 30 years | $2,097.64 |
| Taxes and insurance: $4,800 ÷ 12 + $1,800 ÷ 12 = $400 + $150 | $550.00 |
| PITIA: $2,097.64 + $550 | $2,647.64 |
| DSCR: $3,400 ÷ $2,647.64 (covers the payment, above 1.25) | 1.28 |
| Rent limit at DSCR 1.00: $3,400 − $550 = $2,850 for principal and interest | $407,600 |
| Rent limit at DSCR 1.25: $3,400 ÷ 1.25 = $2,720 − $550 = $2,170 for principal and interest | $310,348 |
| Realistic loan: lower of $300,000 and $407,600 (the value limit binds) | $300,000 |
| Closing costs: 2% × $300,000 | $6,000 |
| Cash in hand: $300,000 − $190,000 − $6,000 | $104,000 |
| Equity remaining: $400,000 − $300,000 | $100,000 |
Even at a 1.25 target the value limit still binds, because the rent supports $310,348 and the value only $300,000. With the interest-only box ticked, the payment becomes $1,875 ($300,000 × 7.5% ÷ 12), PITIA $2,425 and the DSCR about 1.40, but the cash in hand does not change: it is set by the loan size, not the payment.
When the rent limits the loan
Keep everything the same but lower the rent to $2,900. At the $300,000 value limit the DSCR is $2,900 ÷ $2,647.64 = 1.10. That passes a 1.00 minimum, so the realistic loan stays $300,000 and the cash is still $104,000. Now set the target DSCR to 1.25. The rent supports only $253,141: $2,900 ÷ 1.25 = $2,320, less $550 leaves $1,770 for principal and interest. Closing costs fall to $5,063, the cash in hand drops to $58,078 and $146,859 of equity stays in the property (63.3% LTV). The value did not change; the rent did.
What changes the result
Your credit score and loan size
Cash-out leverage commonly runs about 5–10 points below purchase leverage. The best tier we see is up to 80% LTV with 720+ credit on loans up to $1.5 million. Mid-range scores or larger loans more often land around 65–75%, and the lowest score tiers may allow little or no cash-out. See the DSCR credit-score guide.
How long you have owned the property
Select programs can use a newly supported value with no traditional seasoning period. Commonly, though, if you have owned the property less than about six months and want more than about 75% LTV, the value is limited to the purchase price plus documented improvements. Enter your months owned and the calculator adds that caveat when it applies.
The rent the lender counts
On a refinance, the lower of the lease and the appraiser’s market rent is common. Short-term-rental income is commonly a 12-month average reduced by about 20%. A lower counted rent lowers the rent limit, so test a conservative figure.
Rate, amortization and interest-only
A higher rate raises the payment and lowers both the DSCR and the rent limit. A 40-year schedule or an interest-only payment lowers it. Ask which payment the lender uses to qualify.
Costs that come out of the cash
Closing costs, escrow funding and any prepayment penalty on the loan being paid off all reduce what you receive. Many DSCR loans carry a prepayment penalty, so check your current note before you refinance, and the terms of the new one before you sign.
Typical DSCR cash-out terms
These are examples from select lending-partner programs that LoanFight can screen, not universal guidelines. They change, and the full file decides.
| Item | What select programs commonly allow |
|---|---|
| Cash-out LTV, best tier | Up to 80% with 720+ credit on loans up to $1.5 million |
| Lower scores or larger loans | Less leverage, commonly about 65–75%; the largest loans step down further |
| Value seasoning | Select programs use current value with no waiting period; under about 6 months owned, above about 75% LTV commonly uses purchase price plus documented improvements |
| DSCR below 1.00 | Possible on select programs at lower leverage and higher scores; not always for cash-out |
| Short-term rental income | Commonly a 12-month average less about 20% |
| Credit events | Commonly 36 months since a major event; some programs 24 months with LTV limits |
| Loan structure | 30- or 40-year fixed, 7/6 and 10/6 ARMs, interest-only options |
| Prepayment penalty | Common, often up to five years, subject to state limits |
For the full picture, read the DSCR cash-out refinance guide and the DSCR loan program page.
Want the cash-out tested against real programs?
Share the value, payoff, rent and your credit range. LoanFight reviews the scenario and connects you with a lending partner whose LTV, DSCR and seasoning rules fit.
Tell Us About Your Deal →DSCR cash-out calculator FAQs
How much cash can I take out with a DSCR loan?
Start with appraised value × the cash-out LTV, commonly 70–75% and up to 80% with 720+ credit on select programs. Then check that the rent still covers the new PITIA at the lender’s DSCR. Use the lower of those two loans and subtract your payoff and closing costs.
What LTV do DSCR cash-out refinances allow?
Commonly about 5–10 points below purchase leverage. The best tier we see is up to 80% with 720+ credit on loans up to $1.5 million. Lower scores and larger loans usually get less, often about 65–75%. It varies by lender.
Does the new loan have to meet a minimum DSCR?
Usually. Many programs want 1.00 or more, and some price better at 1.25. Select programs accept a ratio below 1.00 at lower leverage, but not always for cash-out. The DSCR is figured on the new, larger payment, not your current one.
Do I have to wait before doing a DSCR cash-out refinance?
Not always. Select programs use a newly supported value with no traditional seasoning. Commonly, if you have owned the property less than about six months and want more than about 75% LTV, the value is limited to the purchase price plus documented improvements.
Why is my cash lower than value times LTV minus the payoff?
Closing costs, escrow funding and any prepayment penalty on the current loan come out of the proceeds. The rent can also cap the loan below the LTV limit. The calculator shows each step so you can see which one cut the cash.
Does an interest-only payment help on a cash-out?
It lowers the qualifying payment, so the DSCR and the rent limit rise and more rentals can reach the full LTV. It does not change the value limit, and the balance does not fall during the interest-only period. Ask which payment the lender qualifies on.
Does LoanFight make DSCR cash-out loans?
No. LoanFight is not a lender. We review your scenario and connect you with a lending partner whose LTV, DSCR and seasoning rules fit the property. The partner sets the actual terms.
Sources
- CFPB: Regulation Z, 12 CFR 1026.3(a) — credit extended primarily for a business purpose is exempt from most consumer mortgage rules.
- CFPB: Official interpretation of §1026.3 — how credit for non-owner-occupied rental property is treated.
- OCC: Comptroller’s Handbook, Commercial Real Estate Lending — how lenders use loan-to-value and debt service coverage to size income-property loans.
Educational estimate only. LoanFight is not a lender, does not make credit decisions and does not set loan terms. The default rate, LTV and costs are illustrations of common ranges, not a quote. Your lending partner will provide the actual terms.