Home / DSCR / Replace the rental loan. Do not pull cash.
Updated September 2026
DSCR guide
Replace the rental loan. Do not pull cash.
Rate-and-term means the new DSCR loan pays off the old one and closing costs, and you do not take cash home. It is the move when the rate, the term, or the balloon is the problem, not a kitchen remodel. Leverage usually screens higher than cash-out and closer to a purchase, often near 80% on a clean rental. You still need qualifying rent. No tax returns on a standard file. If you want money in your pocket, that is cash-out, and the LTV drops.
Sending a file is not an approval and not a credit pull. We text the same business day. We do not call. If we can structure it, we name the door. If we cannot, we say so.
The screen
| Rate-and-term | Cash-out | |
|---|---|---|
| Cash to you | None, besides paying costs | Yes |
| Usual LTV | Closer to purchase, often near 80% | Often 70–75% |
| Income docs | No tax returns | No tax returns |
| Use it when | Rate, term, or balloon | You want equity out |
What we fund
- Balloon or hard-money loans that are due
- A rental whose rate is no longer the point
- Investors who do not need cash
What we still need. Short list.
- Credit is still reviewed. A lower score changes leverage, it does not skip the file.
- Reserves and down payment, sourced, when that screen asks for them.
- Appraisal plus a lease, market rent, or a short-term rent schedule.
- Entity documents if you close in an LLC.
Questions
Can closing costs be rolled in?
Often yes, if the new loan still fits the LTV screen. If it does not, you bring cash.
Does this restart the clock?
Yes. A new loan has a new term. That is the point of a refinance.
What if I want even a little cash?
Then it is cash-out. Limited cash-out rules are tight. Tell us the dollar amount.
Related
These are the guidelines we screen. They are not a promise that your file hits the maximum. Credit-event seasoning, occupancy, and property condition still have to be confirmed. Not a commitment to lend. We text. We do not call.