What Is a DSCR Rate-and-Term Refinance?
A DSCR rate-and-term refinance replaces an existing loan on an investment property without primarily taking cash out. Investors use it to exit hard money or bridge debt, replace an adjustable-rate loan, lower a payment, extend the term, or move into long-term rental financing. Qualification is based primarily on the property's rental income rather than the borrower's W-2 income or tax returns.
Important seasoning distinction:
If a renovation has been completed, a BRRRR or renovation refinance may qualify with no seasoning and can be sized from the new ARV. If there was no completed renovation, Get Brick Capital's current rate-and-term program set generally carries a 3-month seasoning requirement.
Core Qualification Requirements
Credit score. Standard DSCR options generally begin around 660 FICO. Lower-credit options can exist at reduced leverage, depending on the property and full file.
DSCR. Standard programs usually want the property to cover its monthly PITIA at 1.0x or better. Expanded options can go as low as 0.75 DSCR in qualifying scenarios.
Loan-to-value. Maximum LTV depends on credit, DSCR, property type, loan size, and the program used. Lower leverage typically creates more options and better pricing.
Property income. A lease can be used when available. In some scenarios, appraiser market rent can support qualification without an executed lease.
Appraisal. The appraisal must support the property's value, marketability, zoning, condition, and rent assumptions used in underwriting.
What Documents Are Usually Needed?
- Current mortgage or hard-money payoff information
- Property insurance
- Lease, if one exists
- Entity documents when closing in an LLC
- Property appraisal and market-rent schedule when required
- Borrower identification and standard credit authorization at application
W-2s, pay stubs, personal tax returns, and employment verification are not used to calculate DSCR qualification.
Hard Money Exit: Renovated vs. Not Renovated
This is where investors often get conflicting answers. If the hard money loan financed a rehab and the renovation is now complete, the file may fit a no-seasoning renovation refinance using the completed value. If there was no renovation and you simply want to replace the hard money debt with a long-term DSCR loan, the current program set generally requires 3 months of seasoning. The distinction is about the transaction history, not merely the name of the old loan.
Check Your Rate-and-Term Scenario
Send the payoff, value, rent, FICO range, and whether a renovation was completed.
Submit Deal Summary →When Rate-and-Term Is Better Than Cash-Out
A rate-and-term refinance can be the cleaner choice when your priority is reducing carrying cost or replacing short-term debt rather than maximizing proceeds. Borrowing less can improve DSCR, reduce LTV, widen the number of available capital partners, and improve pricing. If you also need equity out, compare the rate-and-term structure with a DSCR cash-out refinance before deciding.