The Short Answer: It Depends on the Program
A signed lease is not a universal DSCR refinance requirement. Get Brick Capital works with multiple wholesale capital partners, and their lease rules differ. Program 1 requires a lease. Programs 2 and 3 do not require an executed lease.
Current lease rules:
Program 1: lease required.
Program 2: no lease required.
Program 3: no lease required.
Why a No-Lease Option Matters for BRRRR Investors
A BRRRR investor may finish renovation before a tenant is placed. On Program 3, the completed renovation can use the new ARV immediately and an executed lease is not required. That can let the investor begin the refinance process based on the finished property rather than waiting solely for a tenant to sign a lease.
Program 3 has its own requirements: minimum 660 FICO, $75,000 minimum loan, and $100,000 minimum property value. The no-lease feature should not be combined automatically with the $50,000 minimum loan from Program 1.
What Happens When There Is No Lease?
On a qualifying no-lease program, supportable market rent can be used instead of an existing tenant's lease payment. The appraisal provides the property value and a market-rent opinion, and the capital partner applies its DSCR rules to that rent and the proposed housing payment.
For the cash-out version of this scenario, see our dedicated guide to DSCR cash-out refinancing without an executed lease.
Program 1 Works Differently
Program 1 is the separate small-balance option with a $50,000 minimum loan and $75,000 minimum property value. It requires a lease. If the lease is less than 90 days old, the capital partner also requires proof of the security deposit and rent plus evidence those funds were deposited into the landlord's bank account.
Program 1 also has different ARV rules. To use a new/current ARV for cash-out, ownership must be at least 91 days and the loan is generally capped at 75% LTV on that basis. Before 91 days, leverage can still be based on the original purchase/value basis.
No Lease Does Not Mean No Documentation
Even on a no-lease program, normal underwriting documentation still applies. Typical items can include:
- Property address and property type
- Current value or completed-renovation ARV
- Current mortgage or hard-money payoff
- Supportable market rent through the appraisal
- Approximate FICO range
- Most recent two months of bank statements for closing liquidity
- Reserve documentation when required
Find the Lease Rule for Your Actual File
Send the property, value, rent estimate, payoff, FICO range, and renovation status. We will match the scenario to the wholesale program that fits.
Get a Quote →The Bottom Line
Some DSCR refinances require a lease and some do not. The answer depends on the selected capital partner and program. Program 3 is especially useful for completed-renovation BRRRR files because it can use the new ARV immediately without requiring an executed lease. Program 1 is useful for smaller loans but requires a lease. Compare the broader options on the DSCR cash-out refinance hub.