What Is a DSCR Cash-Out Refinance?
A DSCR cash-out refinance replaces existing investment-property debt with a larger loan and returns eligible excess proceeds after payoffs and closing costs. DSCR income qualification is based on the property rather than W-2 wages or personal tax-return income.
Important:
Get Brick Capital works with multiple wholesale programs. The highest LTV, lowest loan minimum, no-seasoning treatment, no-lease feature, and low-FICO eligibility do not all belong to the same program.
Step 1: Request a Quote and Match the Program
The initial quote request does not require a credit pull. The useful starting information is the property address, property type, estimated value, current payoff, monthly rent or market-rent estimate, approximate FICO, purchase date, renovation status, and target cash-out amount. We use those details to identify the wholesale program family that actually supports the scenario.
Step 2: Determine the Correct Value Basis and LTV Ceiling
Program 3 can use a new ARV immediately after completed renovation. Its select-state 80% cash-out tier requires 680+ FICO, and outside those states Program 3 is generally capped at 75%. Program 1 can use a new/current ARV after at least 91 days and is generally capped at 75% on that basis. Before 91 days, a refinance can still be possible using the original purchase/value basis instead of the new ARV.
Program 7 is the separate low/no-FICO cash-out path, with leverage from 50% to 75% depending on the credit tier and materially higher pricing.
Step 3: Check DSCR
A common DSCR calculation is:
DSCR = Monthly Gross Rent ÷ Monthly PITIA
PITIA includes principal, interest, taxes, insurance, and applicable HOA expense. A qualifying option can go down to 0.75 DSCR, generally with a rate about 1.00% to 1.25% above the standard tier.
Step 4: Review Terms, Then Proceed to the Formal Loan Stage
Once you review the quote and decide to proceed, the file moves from quote request into the actual loan process. That is when the remaining disclosures, authorizations, credit documentation, appraisal order, and full underwriting file are completed. We intentionally keep the initial quote stage separate from the formal application stage.
Step 5: Appraisal and Rent Support
The appraisal confirms the collateral value and provides rent support used by the selected program. Lease rules vary. Program 3 does not require an executed lease. Program 1 does require a lease, and a lease less than 90 days old triggers additional proof-of-rent and deposit requirements. See the no-lease cash-out guide for the distinction.
Step 6: Underwriting Reviews Credit, Assets, Property, and Program Conditions
DSCR income qualification does not use W-2s, pay stubs, or personal tax returns, but the loan is not documentation-free. The most recent two months of bank statements are generally required for closing liquidity, and checking, savings, investment, or retirement assets can support reserves when permitted. Underwriting also reviews credit, appraisal, title/vesting, entity documents when applicable, rent support, seasoning, and other program conditions.
Step 7: Close and Fund
At closing, the existing mortgage or other required payoff is paid from the new loan and eligible net proceeds are disbursed after closing costs and required funds. A typical close is about 28 days with complete documentation, with approximately 21 days possible on qualifying files but not guaranteed.
Run Your Actual Cash-Out Scenario
Send the property, value, rent, payoff, purchase date, renovation status, and FICO range. We will match the file to current wholesale options.
Get a Quote →The Bottom Line
A DSCR cash-out refinance is not one fixed product. The process starts by identifying the program that fits the file, then sizing the loan from the correct value basis, LTV, DSCR, credit, and property rules. Use the maximum LTV guide for leverage or the post-rehab guide when renovation created the new value.