Help with cash out refinance or heloc or DSCR

Roger Ramirez

Rental Property Investor · Kissimmee, FL · Member since 2020 · 4 posts · 1 vote

this is my situation i have a primary home.

>mortgage $219k

>ARV $360k

>Credit score 620

Home can be rented for $2,400 monthly

how is the best way i can get access to this equity and the most i can get out?

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Janice Carter

Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 606 votes

7mo

Roger, you are sitting on solid equity but with a 620 credit score, your financing options will likely be more restricted and come with higher costs. I would prioritize improving your credit score first to strengthen your borrowing position.

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
7mo
Quote from @Roger Ramirez:

this is my situation i have a primary home.

>mortgage $219k

>ARV $360k

>Credit score 620

Home can be rented for $2,400 monthly

how is the best way i can get access to this equity and the most i can get out?
You cannot DSCR primary residences
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Roger Ramirez
OP
Rental Property Investor · Kissimmee, FL · Member since 2020 · 4 posts · 1 vote
7mo
if i have to move out and make a investment property i will just want that to be my last option
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Mayo GilfurtPro Member
Real Estate Consultant · Connecticut Ct · Member since 2026 · 130 posts · 30 votes
7mo
With a 620 score, the path that usually maximizes access while preserving flexibility is to separate “rate optimization” from “equity access.”
In your case, a traditional cash-out refi may be limited by credit and seasoning, while a HELOC may cap proceeds or come with volatility. A DSCR option can work if the property is treated as a rental and the rent supports the payment — but it often comes with lower LTV and higher rates.
I’d recommend first clarifying whether your priority is maximum cash out now or lower long-term cost, because those typically point to different structures. Once that’s clear, the right product usually becomes obvious
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Janice Carter
Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 606 votes
7mo
Roger, you are sitting on solid equity but with a 620 credit score, your financing options will likely be more restricted and come with higher costs. I would prioritize improving your credit score first to strengthen your borrowing position.
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Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 505 votes
7mo
It depends on if you would like to do a conventional loan that will be underwritten based on your personal income and debt to income (DTI) ratios. If it was a rental and there was proof of a lease and the other guidelines will depend on the lender- various DSCR lenders may want to see the property is either rented with showing receipt of move in funds and written lease or they want see a certain amount of months or rent having being received.
Generally HELOC loans are loans structured based on your personal income and DTI ratios. DSCR loans don't consider personal income and DTI ratios (beyond having the money for the down payment and closing costs if a purchase) if a purchase. DSCR loans are structured based on the property rental income if a rental.
Double checking your mortgage credit score can be helpful because there are different scoring models and the credit scores are similar but not usually identical. That way you can know for certain what credit score you're working with. Generally, if you will be the only person on the loan, the middle mortgage FICO score is the score that will be used to structure the loan. So if, for example, you have a 610, 625 and a 635, the 625 will be used to structure the loan. This will impact what loan to value (LTV) you will be qualified for the refinance.
If it's possible to improve your credit score that can increase the LTV. it will depend on your credit score details and if your credit score is what it is because of for example- high utilization of credit cards- using all of the available credit on a credit line or because of missed payments.
Lenders and underwriters generally care the most about missed mortgage payments that are within the last year so it's ideal if there's none on your credit report. Some lenders will allow one 30 day late mortgage payment in the last year max and this varies by lender and loan program.
It depends on the above factors and how quickly you would like the cash out regarding which route to take for the most cash out.
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