Exiting Hard Money Loan

Houston, Texas
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Exiting Hard Money Loan

Caleb Hardesty
Beaumont, TX · Member since 2022 · 3 posts · 7 votes

Hey all,

I’ve got a single-family in Texas that I bought with hard money and the rehab is done.

Looking to move it into a long-term DSCR loan and trying to get a feel for what’s actually doable right now.

Curious what people are seeing for:

•  75% or 80% LTV on a refi out of hard money — is 80% realistic or is 75% more the norm?

•  Seasoning — how long do most lenders want you on title before they’ll use the full appraised value instead of what you have into it?

•  Do you need a lease in place, or will most lenders go off the appraisal’s market rent?

•  Rates, points, and prepay penalties on a 30-year fixed at those LTVs? Any big difference between just paying off the hard money vs. cashing out a little?

Credit’s around 730. Just trying to get a realistic picture of what to expect so I know what to look for when I start talking to lenders.

Anyone who’s done a hard money to DSCR refi recently (especially in Texas) — what kind of terms did you end up with?

Any recommendations for Texas lenders?

Appreciate any input. Thanks.

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Judith Chime
Virtual Assistant · Member since 2026 · 23 posts · 6 votes
5d

Thanks Caleb, that helps At 2 months, a lot of lenders will base the loan on your purchase plus rehab cost rather than the $160K ARV, but some have shorter seasoning rules, so it's worth comparing a few. Also, most DSCR lenders will qualify you on the long-term rent ($1,500) rather than the furnished income until you have some rental history.

Our team compares multiple DSCR lenders, so we could look at whether refinancing now or waiting a few months gets you the better result. I sent you a colleague request, so feel free to message me.

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  • Jayson Bates
    Lender · McKinney, TX · Member since 2026 · 12 posts · 2 votes
    4d

    Full disclosure, I'm a loan officer licensed in Texas and Arizona. A few things that come up on smaller hard money exits like yours: at a $160K value, check each lender's minimum loan amount first, since some DSCR programs start at $100K or more, and 75% of 160 only clears that by a little. On seasoning, some lenders will use the new appraised value before six months if you can document the rehab with receipts and photos, while others cap you at purchase plus rehab until you're past six months, so ask that question up front. For the 30-night furnished plan, most DSCR lenders will underwrite to the long-term market rent on the appraisal's rent schedule, and only a few will count medium-term income without a track record, so run your coverage on the $1,500 number. On prepays, if you think you'll refinance again once it seasons, a shorter prepay can be worth a slightly higher cost. And Texas's home equity cash-out restrictions only apply to homesteads, so pulling a little cash out on a rental isn't an issue.

    0Reply
  • Corey Wallace
    Member since 2026 · 12 posts · 0 votes
    2d

    Caleb, congratulations on finishing the rehab. I'm Corey with SKCI Funding. For a Texas DSCR refinance, the seasoning period and whether you're simply paying off the hard-money loan or taking additional cash out can make a significant difference. Have you established your current payoff and the date the hard-money loan matures? Those details would help narrow down the lending programs worth reviewing.

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  • Neeraj Diwan
    Lender · Stamford, CT · Member since 2026 · 43 posts · 7 votes
    2d

    @Caleb Hardesty For the Beaumont refinance, I'd confirm the lender's seasoning and value-basis rules before counting on cash-out. Also compare the loan using supported long-term rent versus the proposed furnished rental income; those may be treated differently. J3 can review the payoff, requested loan amount, rehab basis, rent documentation and maturity date for potential first-position financing. Hit me up if you want to dive deeper, happy to talk to you further about this.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1d

    Hey @Caleb Hardesty ,

    Happy to answer some of your questions:

    Curious what people are seeing for:

    •  75% or 80% LTV on a refi out of hard money — is 80% realistic or is 75% more the norm?

    You can obtain 80% LTV on a Cash Out Refi using the new appraised value

    •  Seasoning — how long do most lenders want you on title before they’ll use the full appraised value instead of what you have into it?

    You can refi with no seasoning required as long as rehab is complete. Lenders will use the full new appraised value.

    •  Do you need a lease in place, or will most lenders go off the appraisal’s market rent?

    You can use market rent to qualify

    •  Rates, points, and prepay penalties on a 30-year fixed at those LTVs? Any big difference between just paying off the hard money vs. cashing out a little?

    Rates are anywhere from 6.75-8.75% depending on LTV, Prepay, Buydowns, Points, etc..

    Cash outs have worse pricing compared to doing a rate and term (no cash out, just payoff the loan and closing costs)

    General rule of thumb: Low points = higher rate. Long Prepay = lower rate. Purchase and rate and term = lower rate

    Credit’s around 730. Just trying to get a realistic picture of what to expect so I know what to look for when I start talking to lenders.

    Anyone who’s done a hard money to DSCR refi recently (especially in Texas) — what kind of terms did you end up with?

    Any recommendations for Texas lenders?

    Just closed a refi at 7.25% Interest-Only with .55% points last week in Temple. 5,4,3,2,1 PPP at 65% LTV. Rates change daily and depending on the scenario so take this with a grain of salt.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 570 Reviews
    WebsiteView Page
    1Reply
  • Mayo GilfurtPro Member
    Real Estate Consultant · Connecticut Ct · Member since 2026 · 161 posts · 35 votes
    1d

    Good evening, Caleb,

    Congratulations on completing your renovation.

    Moving from hard money into long-term DSCR financing is certainly worth exploring.

    Regarding your questions, 75% LTV is a common benchmark for cash-out refinancing, while higher leverage may be available depending on the lender and overall transaction.

    Seasoning requirements, rental income documentation, and prepayment structures can also vary significantly between programs.

    I'm with Gilfurt Capital, specializing in commercial and business-purpose investment financing.

    I'd be happy to discuss your Beaumont property and help determine which financing options may fit your situation.

    Best regards,

    Mayo Gilfurt

    Gilfurt Capital

    0Reply
  • Matthew Meredith
    Attorney · TX · Member since 2026 · 4 posts · 1 vote
    1d

    @Caleb Hardesty, I'm an attorney in Texas and one thing I like to remind real estate investors about is asset protection. You should consider whether to move the property into an LLC before taking out your DSCR loan to protect your personal assets from any risks with your real estate. Happy to discuss this further if you have any questions.

    0Reply
  • Lauren CutchenBusiness Member
    Real Estate Agent · The Woodlands, TX · Member since 2019 · 220 posts · 82 votes
    3h

    Texas DSCR lenders will care a lot about seasoning, lease vs market rent, and whether your tax estimate is real. Get the rent letter and insurance quote lined up before you shop LTV so you're not renegotiating mid-underwrite.

    [email protected]832-406-4239
    Lauren Cutchen 513 Reviews
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