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Refinancing a rental property looks different than buying one. The property already exists. The income stream already flows. The question becomes: can the refinance improve the numbers?

DSCR refinance lenders evaluate existing rental income, property value, and equity position. They look at current debt service and compare it to proposed terms. The goal is better cash flow, lower rates, or accessed equity.

Investors refinance for different reasons. Some want to lower monthly payments. Others need capital for the next deal. A few consolidate debt across multiple properties. Each scenario requires a lender that understands the specific strategy.

The right DSCR refinance lender depends entirely on the goal. A rate-and-term refinance suits investors who want lower payments. Cash-out works for those needing capital. Debt consolidation helps investors with multiple loans. Each lender specializes in different scenarios.

When Investors Consider Refinancing

Investors refinance for different reasons. Some want lower monthly payments. Others need cash for the next deal. A few want to simplify multiple loans into one payment.

• Rate-and-term refinance. The loan amount stays the same. The rate or term changes. Lower rates mean smaller payments. Shorter terms build equity faster. Longer terms improve monthly cash flow. This makes sense when market rates have dropped since the original purchase.
• Cash-out refinance. Equity becomes cash. That cash might become a down payment on another property. Or pay off higher-interest debt. Or fund renovations. Maximum cash-out LTV varies by lender, property, and loan program.
• Debt consolidation. Multiple properties sometimes mean multiple loans. Combining them into one payment simplifies management. It can also lower overall costs.
• Portfolio repositioning. Markets change. An investor might refinance to prepare for a sale. Or lock in better terms before rates rise. Or adjust the portfolio for tax purposes.

The right lender for each scenario differs. Available rate-and-term, cash-out, and portfolio refinance options vary by lender.

1. Newfi Lending

Investors with vacant rental properties often hit a wall with traditional lenders. Conventional refinancing requires current tenant income. Newfi Lending offers a DSCR Cash Flow loan that uses expected market rent instead of actual tenant payments. This means investors can refinance without a tenant in place.

Newfi’s DSCR Cash Flow loan provides 40-year fixed terms and 30- and 40-year interest-only options with a 10-year interest-only period. These longer amortization structures can reduce required monthly debt payments compared with shorter terms. The company introduced new ARM options with 5/6 and 7/6 structures in 2026.

Newfi allows cash-out refinances on properties listed for rent but currently vacant, provided they are in rent-ready condition. The minimum credit score drops to 620 on some programs. Investors need 36 months of mortgage experience to qualify. Residential properties up to 8 units are eligible. Lending is available in 40 states.

Why investors choose Newfi for refinancing:

• Minimum DSCR as low as 0.75 for qualified borrowers
• Vacant property refinance using market rent instead of tenant income
• 40-year fixed and interest-only terms lower monthly payments
• New 5/6 and 7/6 ARM options for shorter hold periods
• Up to 75% LTV for cash-out transactions
• Minimum credit score of 620 on some programs

Refinance specifics to know: Minimum 36 months of mortgage experience required. 1-8 unit residential properties qualify. Property cannot be listed for sale within 6 months of application for cash-out. Lending available in 40 states. Interest-only options available for 30- and 40-year terms with a 10-year IO period.

2. Kiavi

Kiavi’s platform works for rate-and-term and cash-out refinances. Single-family rentals, 2-4 units, and condos all qualify. Their cash-out refinance needs 90 days of seasoning on purchase properties.

Kiavi uses 110% of market rent in their DSCR calculation. The company also offers no hard credit pulls for rate quotes and no minimum liquidity requirements.

Their rate structures include 5/1 and 7/1 ARMs with fully amortizing and interest-only options. Thirty-year fixed rates are also available. No prepayment penalty applies after year 3.

Kiavi accepts DSCRs as low as 0.8x with compensating factors. This may provide additional qualification flexibility for properties with lower DSCR levels.

Why investors choose Kiavi for refinancing:

• Cash-out refinance available after 90 days
• Uses 110% of market rent in DSCR calculation
• Multiple rate structures including fixed and ARM options
• No prepayment penalty after year 3
• Accepts DSCRs down to 0.8x

Refinance specifics to know: Kiavi’s maximum LTV is 80% for rate-term refinances. Cash-out refinances allow up to 75% LTV. No hard credit pulls for rate quotes. No minimum liquidity requirement.

3. Lima One Capital

Lima One Capital offers up to 80% LTV on rate-term refinances, and up to 75% LTV on cash-out refinances. The company underwrites rental loans based on property cash flow and DSCR, with no personal income or investment experience requirements for Single Family Rental loans.

For investors using Lima One’s Fix2Rent program, waived seasoning applies when refinancing from a fix-and-flip loan into a rental loan. This structure supports the transition from renovation financing to a long-term rental loan. Investors can consolidate multiple properties into portfolio rental loans, managing a single mortgage payment instead of several.

Lima One’s rental structures include fixed-rate, ARM, amortizing, and interest-only options. Prepayment and rate options can be customized to fit exit plans. Minimum FICO score sits at 660. The company lends in 46 states and Washington, D.C.

Rental property refinance options through Lima One include both rate-term and cash-out scenarios. Portfolio loan options allow multiple eligible properties to be financed within a consolidated structure.

Why investors choose Lima One for refinancing:

• Up to 75% LTV on cash-out refinances
• Waived seasoning from fix-and-flip to rental
• Portfolio loans consolidate multiple properties
• No personal income or investment experience required
• Prepayment options customized to exit plans

Refinance specifics to know: Lima One requires a minimum FICO score of 660. Maximum LTV is 80% for rate-and-term and 75% for cash-out. Not licensed in Alaska, North Dakota, South Dakota, or Vermont. Cash-out refinance requires at least 90 days of seasoning.

4. LendingOne

LendingOne offers DSCR rental loans for purchases, refinances, and cash-outs. The company provides a complimentary 45-day rate lock and supports 90-day seasoning for cash-out refinances. Business-purpose loans can close under an LLC.

Their DSCR programs include options for negative cash-flowing and break-even properties. These programs may accommodate properties with lower DSCR levels, depending on qualification requirements. LendingOne offers rates with DSCR as low as 0.75. Loan size reaches up to $2 million.

Rate structures include 30-year fixed, 5/1 ARMs, and 10/1 ARMs. Interest-only options are available. Prepayment penalties range from 1-5 year step-downs. The company serves early-stage, experienced, and portfolio investors with different refinance needs.

LendingOne’s DSCR refinance programs accept various property types including single-family, condos, townhomes, and 2-4 unit properties. Qualification requirements vary based on the property, borrower profile, and specific refinance program.

Why investors choose LendingOne for refinancing:

• 90-day seasoning for cash-out refinances
• Complimentary 45-day rate lock
• Options for negative cash-flowing properties
• Interest-only payment structures available
• Business-purpose loans close under LLC

Refinance specifics to know: LendingOne’s maximum LTV is 80% for rate-term refinances. Cash-out refinances allow up to 75% LTV. Minimum credit score varies by program. Prepayment penalties range from 1-5 year step-downs.

Refinance Program Features Across Lenders

The table below shows how each lender handles key refinance factors.

The table provides a quick comparison of refinance programs, investor ratings, and reviews across the four lenders. for rate-and-term and cash-out refinances. Where they differ is in prepayment penalties, seasoning requirements, and maximum loan amounts. Investors should match these factors to their specific refinance timeline and exit strategy.

What Lenders Look at During a DSCR Refinance

Refinance underwriting differs from purchase underwriting. Lenders have additional factors to evaluate.

• Property value. An updated appraisal determines current value. This affects available equity for cash-outs. Investors should know their property’s current market position.
• Existing loan terms. The current interest rate, remaining balance, and prepayment penalty matter. Investors can compare the existing loan terms with the proposed refinance structure to evaluate the potential costs and benefits.
• Rental income verification. Current leases prove actual income. Lenders review rent rolls and tenant ledgers. Vacancy history also factors into the evaluation.
• Expense trends. Insurance costs have increased significantly. Changes in insurance, taxes, maintenance, and other property expenses can affect cash flow and the overall refinance calculation..
• DSCR calculation. Current rental income divided by proposed PITIA determines the ratio. Lenders want to see coverage that meets their minimums.
• Equity position. The difference between property value and existing loan balance determines available equity. Maximum cash-out LTV varies by lender and loan program.
• Reserve requirements.  Vary by lender, borrower profile, and loan program. Investors should confirm the required amount before applying.

Cash-Out Refinance Considerations

Cash-out refinances need a closer look than rate-term deals. The numbers tell one story. The trade-offs tell another.

• Amount available. Maximum cash-out LTV varies by lender and loan program. Available leverage can also depend on DSCR, credit profile, and property characteristics.
• Rate impact. Pricing may differ between cash-out and rate-and-term refinances. Investors should compare rates, fees, and other loan terms for each structure.
• Closing costs. Appraisals, title work, origination fees, recording charges. They pile up fast. Run the break-even math before signing.
• Cash flow changes. New payment could go up or down. Either way, DSCR gets recalculated. Make sure the numbers still work.
• Future flexibility. Some lenders lock borrowers in with prepayment penalties. Others restrict subsequent refinances. Know the exit terms upfront.

Frequently Asked Questions

Refinance questions come up a lot. Seasoning periods. Cash-out limits. Prepayment penalties. Each lender handles these differently.

Rate-term vs cash-out: what’s the actual difference?

Rate-term keeps the loan amount unchanged. Only the rate or term shifts. Cash-out pulls equity out above the existing balance. Rates and qualification requirements can differ between rate-and-term and cash-out refinance programs.

How long do I need to own a property before refinancing with a DSCR loan?

Seasoning requirements vary by lender and program. Kiavi offers cash-out refinancing after 90 days on purchase properties. LendingOne also supports 90-day seasoning for cash-outs. Some lenders allow immediate refinancing on free-and-clear properties.

Can I refinance a property that is currently vacant?

Requirements for vacant properties vary by lender and loan program. Newfi’s DSCR Cash Flow loan uses expected market rent instead of actual tenant payments, allowing vacant property refinance.

What credit score do I need for a DSCR refinance?

Minimum credit requirements vary by lender and loan program. A borrower’s credit profile may also affect available rates, LTV limits, and other loan terms.

Can I refinance multiple properties at once?

Yes. Some lenders offer portfolio loans that consolidate multiple properties. Lima One allows investors to consolidate properties into a single portfolio loan. This can consolidate financing for multiple eligible properties into a single loan structure.

Final Thoughts

Investors may refinance a rental property to adjust loan terms, access equity, or restructure existing financing. DSCR refinance programs offer different options depending on the property and investor’s goals.

The four lenders above offer different approaches to DSCR refinancing, including rate-and-term loans, cash-out options, portfolio financing, and programs for different property scenarios.

The appropriate refinance option depends on the investor’s goals, property characteristics, existing financing, available equity, and expected holding period.

Investors can compare rates, fees, prepayment terms, seasoning requirements, LTV limits, and closing timelines before refinancing. Reviewing the full loan structure can help determine whether a refinance aligns with the property’s finances and the investor’s strategy.

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