How do you cash out refinance on a property without a 9-5?

20 Replies


We are looking to gain a better understanding for refinancing on our property. At the moment, we are under the impression that you need a 9to5 or proof of 2 year income(self employed). Does anyone have profound knowledge of this process?

Thank you in-advance.

There are lenders who are asset based and do not require tax returns nor pay stubs for purchases or refinance deals. Your rates will be a bit higher than a conventional loan but still very possible 

Originally posted by @Shane V Charles:


We are looking to gain a better understanding for refinancing on our property. At the moment, we are under the impression that you need a 9to5 or proof of 2 year income(self employed). Does anyone have profound knowledge of this process?

Thank you in-advance.

 Guessing this is a residential refi (and not commercial). Is this a rental property, or your own residence? 

This can be very tricky to accomplish without a regular W2 gig and without proving historical income, especially via the regular bank route (as other replies mention). However, there might be ways around it, through credit unions, other non-bank lenders, and even commercial, depending on what type of deal it is and if you have other properties. 

That said, all of the above will cost you - typically in rates and points. You should very much weigh out your equity position, and how favorable it is to do so, including what your end goals are. 

You might have an easier time getting a HELOC, instead of REFI.

Again, tough to assess with info provided. 

In any event, good luck!

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@Shane V Charles Is this your primary residence or an investment property?  How long have you owned the property and what is owed on it? As Dan mentioned, there are ways of refinancing with no-income doc from private money lenders, but you wouldn't be able to do so if it was your primary residence. 

Happy to help if you provide details. 

@Shane V Charles You can work with a non-bank lender that will use the rental property's cash-flow instead of your income to qualify the loan. Your rates and the closing costs depend on a few factors (your FICO, the property's cash-flow, the properyt type, loan amount etc). It could be anywhere between 4.8% - 8.5% on a 30 yr fixed -- again it depends on your particulars.  

@Dan Mundie thank you for the reply. It is a multi family resi investment. We are based in Chicago and our goal is brrr.

We are looking to grow our portfolio and want to leave our 9-5 but prior to doing so, we’d like to have a clear understanding of this.

@Rick Taldykin We’re so grateful for all of the responses! We are looking to use OPM on our 2nd Multi F. Investment property. We want to ensure that we have an exit strategy to pay them back but if we close and leave our corporate job, we weren’t quite clear on the other options.

We are new investor, this being our 2nd property in 4 mo.

Hey @Shane V Charles

You've already gotten some great responses but I wanted to add that you may also consider looking into local commercial banks. Some of the local banks around me have some terms for cash out refi and base it strictly on property performance and ARV. I would ask around your local investor circles to see if anyone has any referrals for a small local bank that does in-house lending. You may be pleasantly surprised how easy they are to work with even if you don't have W2 income.

There are lenders out there that loan based on the property not you as the borrower.  Well, mostly the property and a little bit of you.  They will want to see your credit score and your rate will be mostly derived from that.  I worked with a bunch of these type of lenders to grow my rental portfolio where it is today.  Traditional financing dried up for me 120+ rental units ago and I didn't have a choice but to find alternative funding sources.

Show income. If you have consistent income coming in for several years, it will be relatively easy. You will also need a performing property with consistent income.

@Eli Gilbert -- yes, I do. There are a ton of them in the space now and it's pretty easy to find and reach out. I saw your previous post here and you should keep in mind that credit score/history plays a role with non-bank lenders. Usually you need to have a 620 FICO and above. Some may have different requirements, it can be a 600 - 660 FICO, you just need to speak with various lenders and get their criteria. 

@Shane V Charles the rates you’ll get on these no income loans are 5.5-6.5% 30 year Amt with a 5 yr balloon. They’re not the best. I’d call a lot of local banks first and speak to their commercial mortgage department, although they will want to refi at least 5 properties not just 1.

@Shane V Charles

There are non bank lenders that offer loans that are 30yr fixed/am with 30 yr term. These typically require DSCR above 1.0 or 1.2 to receive max leverage (75-80% LTV), and rates range from 4% to 6.5% depending on LTV chosen, FICO, and PPP chosen, and rate buy down. The only borrower qualifications to get these types of loans done are FICO above 575 and standard background check to verify the borrower(s) don't have current late pays, liens, foreclosures, etc.

You can search the bigger pockets network or marketplace to track down a lender that does this.