DSCR 85% LTV Cash-Out Refi
Alex PattonPro Member
Investor · East Tennessee · Member since 2022 · 3 posts · 4 votesDSCR 85% LTV Cash-Out Refi
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votesQuote from @Alex Patton:
The title says it all.... I have heard rumors but none of my lending channels or contacts offer this for a refi.
I know there are lenders that will offer 85% LTV on a DSCR purchase, but does anyone offer this for a Refinance? The property in question checks all the boxes, we have an appraisal on file and we have a lease scheduled to start next month with security deposit and first month rent deposited, well over 1:1 even at a 8.5% rate. Because of the location, market conditions and characteristics of the property selling is not currently an option for us. We flipped it and went well over budget, so every dollar we can get back out of it would be helpful.
Thanks in advance.
Not on a Cash Out Refi, but I have seen 85 LTV on a rate and term refinance.
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26 Replies
- 1moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Alex Patton:
The title says it all.... I have heard rumors but none of my lending channels or contacts offer this for a refi.
I know there are lenders that will offer 85% LTV on a DSCR purchase, but does anyone offer this for a Refinance? The property in question checks all the boxes, we have an appraisal on file and we have a lease scheduled to start next month with security deposit and first month rent deposited, well over 1:1 even at a 8.5% rate. Because of the location, market conditions and characteristics of the property selling is not currently an option for us. We flipped it and went well over budget, so every dollar we can get back out of it would be helpful.
Thanks in advance.
Not on a Cash Out Refi, but I have seen 85 LTV on a rate and term refinance.
LuxePrivate Investments LLC 572 Reviews - 1moVincent JacobbiPro MemberLender · San Diego, CA · Member since 2023 · 60 posts · 25 votes
Max 80% LTV for cash out refinance, 85% LTV for rate & term.
- 1moMike GrudzienPro MemberLender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votesWow! Was that AI...?
Quote from @Renard Brown:
The short answer is yes, but strictly for Rate-and-Term refinances.
While virtually no secondary market investor will buy an 85% LTV Cash-Out Refinance (cash-out DSCR caps firmly at 80% LTV, and often 75% for recently rehabbed assets), 85% LTV Rate-and-Term DSCR Refinances do exist in specialized debt markets.
If your goal is to pull out every dollar you spent on the flip, an 85% Cash-Out isn't going to happen. However, if your primary goal is to pay off your current hard money/bridge debt and closing costs without bringing additional cash to the closing table, an 85% Rate-and-Term DSCR program can get the job done.
Key Requirements for 85% LTV DSCR Refinancing
To execute an 85% LTV DSCR Rate-and-Term refinance, lenders typically look for strict risk offsets:
- High Credit Score: Typically requires a minimum 720 FICO (some programs require 740+).
- Strong DSCR Ratio: Even though the rate will be on the higher end, the property must maintain a minimum 1.0x to 1.15x DSCR at that 85% leverage point.
- Lease Verification: Having a signed lease with the security deposit and first month's rent already deposited (as you mentioned) satisfies the in-place income requirement without needing 3-6 months of bank seasoning.
- Strict Rate & Term Definition: The loan amount can only cover the existing payoff balance, accrued interest, title, and lender closing fees. Zero cash can go to the borrower at closing.
Alternative Option: The "Delayed Financing" Cash-Out Loophole
If you bought the property using 100% cash (or private money without a formal recorded mortgage lien) and finished the flip within the last 6 months, you may qualify under Delayed Financing guidelines:
- Allows you to refinance up to 80% LTV immediately based on the new appraised value.
- Treats the transaction as a cash-out to reimburse your purchase price and documented rehab expenses without waiting for standard 6-to-12-month seasoning periods.
📲 Let's review your appraisal and payoff numbers. Let's connect
- 1moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 494 votes
85% LTV on a rate/term refinance and 80% LTV on a cash out refinance depending on the borrower's middle mortgage FICO credit score, property location and type of property.
Bright Skyline518 Reviews - 1moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 122 votes
Quote from @Alex Patton:
The title says it all.... I have heard rumors but none of my lending channels or contacts offer this for a refi.
I know there are lenders that will offer 85% LTV on a DSCR purchase, but does anyone offer this for a Refinance? The property in question checks all the boxes, we have an appraisal on file and we have a lease scheduled to start next month with security deposit and first month rent deposited, well over 1:1 even at a 8.5% rate. Because of the location, market conditions and characteristics of the property selling is not currently an option for us. We flipped it and went well over budget, so every dollar we can get back out of it would be helpful.
Thanks in advance.
@Alex Patton
85% on a DSCR cash-out refi is definitely the tough part — most programs that reach 85% are much more aggressive on purchases than cash-out. With the rehab complete, appraisal in hand, and lease starting next month though, this is worth looking at. How long have you owned the property? - 1moRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Alex Patton:
The title says it all.... I have heard rumors but none of my lending channels or contacts offer this for a refi.
I know there are lenders that will offer 85% LTV on a DSCR purchase, but does anyone offer this for a Refinance? The property in question checks all the boxes, we have an appraisal on file and we have a lease scheduled to start next month with security deposit and first month rent deposited, well over 1:1 even at a 8.5% rate. Because of the location, market conditions and characteristics of the property selling is not currently an option for us. We flipped it and went well over budget, so every dollar we can get back out of it would be helpful.
Thanks in advance.
How much cash out would there be really if you are at 85% LTV? If you can get to 85% on a refi (rate and term) then I'd have to imagine that gets you most of the way there - hard to imagine theres a ton of equity sitting in there even for a cash-out if its not flippable and over budget on basis anyway
Harpoon Capital512 Reviews - Lender · NJ · Member since 2025 · 50 posts · 23 votes1mo
85% LTV on a DSCR cash out refi is going to be pretty lender specific. I'd check with lenders that have higher LTV DSCR programs, since the 75–80% range is much more common.
The strong DSCR and documented lease should help, but I'd also confirm how the lender treats the existing appraisal and seasoning requirements before ordering anything new.
- Investor · NY · Member since 2026 · 121 posts · 42 votes1moI’ll say it again you will find no lenders that will give you DCR cash out for 85% LTV
- 1moRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Mendy J.:
I’ll say it again you will find no lenders that will give you DCR cash out for 85% LTVThis. Simple and Succinct Answer
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- Lender · Phoenix, AZ · Member since 2026 · 55 posts · 17 votes1mo
Alex — the group's right, 75-80% is the real ceiling for DSCR cash-out across pretty much every program I'm aware of; 85% only tends to show up on purchase or sometimes rate/term with no cash back. One thing that can still help even though the LTV cap won't move: a documented lease with deposit and first month collected (like you already have) plus a clean seasoning story is exactly what gets you priced at the good end of that 75-80% band instead of getting hit with adjustors for vacancy or unseasoned ownership. Worth asking lenders to quote it at both 75% and 80% — the rate difference between those two isn't always symmetric, so the extra leverage isn't automatically worth it once you look at payment.
- 1moGregory AcsPro MemberLender · MD · Member since 2025 · 137 posts · 52 votes
From what I've seen, the challenge is usually the cash-out portion rather than the DSCR itself. Even if the property easily supports the payment, many lenders have more conservative LTV limits for cash-out refinances than they do for purchases because they're managing a different level of risk.
I'd also compare the value of pulling the extra equity now versus waiting if market conditions or additional seasoning could improve your refinance options. Sometimes a slightly lower LTV today can be less expensive than stretching for maximum proceeds with significantly higher costs or less favorable terms.
- Lender · Orlando, FL · Member since 2026 · 2 posts · 0 votes1mo
Hey Alex, an 85% LTV on a DSCR cash-out refi is standardly hard to find right now since most institutional secondary channels cap cash-outs at 75-80% LTV. However, there are still private debt programs that can stretch leverage up to 80-85% depending heavily on credit score, property type, and seasoned value. Just sent you a direct message to go over the specific numbers.
- Investor · NY · Member since 2026 · 121 posts · 42 votes1mo
no lender, including private lender will give you 85% cash out unless they're charging you 10 points...
im talking from my experience not assumptions
- 1moJared CraftPro MemberLender · MI · Member since 2025 · 16 posts · 6 votes
Hey Alex! I'm a pro on the lending side. To be up front, I'm not aware of an 85% LTV DSCR program for a cash out refinance, but I may have some non DSCR options for investment properties up to 90% LTV. Happy to talk any time!
- Member since 2026 · 2 posts · 0 votes1mo
I’m in the DSCR space, and I can say with confidence that you’re unlikely to find a legitimate 85% LTV cash-out DSCR refinance option.
Some lenders offer 85% LTV on DSCR purchases, and occasionally on rate-and-term refinances, but cash-out is generally capped lower — often by at least 5% — and priced more aggressively. Even with a strong appraisal, a lease already signed, funds deposited, and rent supporting a 1.00+ DSCR at an 8.5% rate, those factors usually won’t overcome the program’s maximum cash-out LTV limit.
The reason is risk. With cash-out, you’re increasing the debt secured by the property without increasing its value or income. That reduces the lender’s equity cushion, increases potential loss severity, and leaves less borrower equity at risk. Lenders typically manage that risk through lower maximum LTVs and higher pricing.
The property may be the same, but the lender’s position is not. An 85% LTV purchase may be available because the borrower is bringing fresh equity into the transaction. A cash-out refinance removes equity instead, which is why most DSCR programs draw a firm distinction.
Given your circumstances, the most realistic options are likely a lower-LTV cash-out refinance, a rate-and-term refinance that maximizes proceeds within program limits, or a portfolio/private lender willing to evaluate the property and borrower outside standard DSCR guidelines.
- 1moRay WilliamsBusiness MemberLender · Denver, CO · Member since 2017 · 148 posts · 68 votes
I work in mortgage lending, and the gap between purchase or rate and term max LTV and cash out max LTV on DSCR loans is not a coincidence, it comes down to how these loans get priced and sold on the secondary market. Cash out is viewed as materially higher risk than rate and term or purchase, so most DSCR programs cap cash out somewhere around 75 to 80 percent even when that same lender will go to 85 on a purchase or straight rate and term refi. I would be surprised to find anyone offering 85 on a cash out right now regardless of how clean the file is. The other piece worth checking on this one specifically is seasoning. Since you flipped this property, a lot of DSCR lenders will not use the new appraised value for LTV purposes until you have held title for a set period, commonly six months, sometimes twelve depending on the investor. Before that seasoning period, LTV often gets based on the lower of your original purchase price plus documented rehab costs or the new appraised value, which can shrink your cash out number even if the appraisal itself is strong. Ask any lender you are considering two specific questions before you go further, what is their seasoning requirement for a post flip cash out, and does their 80 percent tier require a minimum DSCR above 1.0, since a lot of the higher LTV tiers step down once DSCR or pricing gets less favorable. That will tell you fast whether 80 is realistic here or whether you are looking at 75.
- Banker · MA · Member since 2026 · 120 posts · 31 votes1mo
85% LTV cash-out does exist on DSCR, it's just a thinner slice of the market and the overlays are real. Most of the programs I'm aware of at that LTV want a minimum DSCR of 1.25 on the cash-out scenario, not just at the note rate but after the new higher payment is calculated, and they typically want 6 to 12 months of reserves in liquid assets after closing rather than the 3 to 6 months you'd see at 75% or 80%. The good news for your situation is that a lease with deposit and first month collected is exactly what these programs want to see for income documentation, since the rent has to be verified, not projected. The harder part is that "rumors" is usually accurate here because these products live at the portfolio and correspondent level, not at the aggregator level, which is why your standard channels aren't finding it. The rate spread at 85% cash-out on DSCR versus 75% is also meaningful, often 50 to 100 basis points depending on the program, so it's worth modeling whether pulling a little less out at 80% LTV (where the product is more widely available and pricing is better) gets you close enough to where you need to be without the extra friction.
James Driscoll
- 3wRay WilliamsBusiness MemberLender · Denver, CO · Member since 2017 · 148 posts · 68 votes
Alex, 85 percent LTV on a DSCR cash-out refi is rare, and what Erik ran into lines up with what I see across most non-QM lenders right now. Cash-out generally carries more risk than a rate and term or a purchase, so most programs cap cash-out DSCR refis at 75 to 80 percent LTV even for strong files. There are a handful of lenders who will stretch to 85 on cash-out, but it usually requires a DSCR ratio north of 1.25 to 1.3 and a higher credit tier, and you will pay a real rate premium for that last 5 to 10 points of leverage.
Worth checking with your lenders whether seasoning is the actual blocker here rather than the LTV itself. A lot of DSCR cash-out programs require 6 months of title seasoning measured from the recorded deed, not from when you finished the flip, so if this property closed more recently than that, that alone could be why nobody is quoting you 85 regardless of the numbers. I underwrite these deals for a living, and the seasoning clock catches more flip-to-hold investors off guard than the LTV cap does. It might be worth running the math on 80 percent at a better rate too, since sometimes the extra 5 points of cash out gets eaten up almost entirely by the rate premium and the net cash in your pocket ends up close either way. - 1wCharlene SumeoPro MemberMember since 2015 · 1 post · 0 votes
Is it normal for lenders to send out a link for applying for a Heloc & after you put all your Important Information Social Security etc, & the next boxes that come up is for you to put in your credit card information. I have done refinancing & Helocs with Banks, Credit Union & Financing Institutions & they never ask for a credit card. If I had known they would ask for that I would've put in my Social Security or just wouldn't fill anything. This was from a Lender that BP refer to me. I am just so disappointed & this is the 1st time I did anything on BP besides watching their episodes. Please help me understand. Thanks
- 1wRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
What are they asking for with the credit card link - its not necessarily out of the ordinary but you are well within your rights to be cautious on it - is it for an Appraisal Order, Credit Report Order - not addressed?
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- Lender · Franklin, TN · Member since 2026 · 12 posts · 2 votes1w
85% cash-out DSCR is still tough — most investor lenders I see top cash-out around 75%. Purchase/rate-term can stretch closer to 80–85% with some DSCR shops, so compare max cash vs a slightly lower LTV at a better rate. Net proceeds can end up similar.
- Lender · Houston, TX · Member since 2026 · 60 posts · 6 votes6d
The 80 versus 85 answer is settled above, so the more useful thing is probably where that line actually falls for you, because it may not be where you think.
Rate and term versus cash out is decided by what is being paid off, not by how it feels. If your flip loan is still in place and it funded the purchase and part of the rehab, refinancing that balance is rate and term and the 85% tier is live. The trap is the overage. Money you spent out of pocket once the rehab ran past budget is not part of anybody's payoff, so recapturing it is cash out, and the whole loan reprices to 80%, not just the incremental slice. If a meaningful share of the overage went on your own card or out of your own account rather than through the loan, that one decision is what is costing you the five points, and it was made months ago.
Second, and this will probably bind before LTV does. "Well over 1:1" is not a program threshold. Most DSCR programs treat 1.0 as a floor and price meaningfully better at 1.20, and the top LTV tier is usually gated on the higher number rather than the floor. Moving from 80 to 85 raises your payment roughly 6%, so run coverage at the 85 payment before you spend more time hunting for the program. If it lands at 1.05 you will be offered 80 anyway and the search was moot.
Third, the lease. A lease starting next month with first and deposit collected is not the same as a lease with payment history. A fair number of programs want a seasoned lease or at least one payment received before they will write the top tier. Sixty days of patience is sometimes worth more than another twenty lender calls, and on a property you just finished the appraisal is fresh and will still be good.
- 1dChristian TurnerPro MemberLender · Coral Gables, FL · Member since 2026 · 20 posts · 5 votes
Alex, broker here. Everyone above is right that 85% cash-out doesn't exist in DSCR, so the useful question is whether your refi is actually a cash-out. If the overrun sits on a hard-money or rehab loan that was used to buy and improve this property, several DSCR lenders will classify paying it off as rate-and-term, even with a small amount of cash back to you (typically under 2% of the loan or a few thousand dollars). That gets you to 85% and retires the expensive debt, which is usually most of what "every dollar back" really means. Ask each lender how they classify a rehab-loan payoff before you assume you're stuck at 80%.
If the overrun is on your own cash or a credit line, the remaining moves are: (1) 80% DSCR first plus a business-purpose second or investor HELOC from a different lender to 85-90% CLTV, which exists but prices high; (2) if you own another property with equity, a blanket or cross-collateralized DSCR loan that spreads the LTV across both; (3) delayed financing rules if you bought with cash inside the last six months. Happy to look at the numbers, no obligation.
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