LTV by Program and Credit Score
* Higher rates apply on Expanded and Program 7
How to Calculate Your Maximum Loan Amount
Max Loan = Property Value × LTV %
Example: $300,000 property at 80% LTV = $240,000 max loan
Net cash out = $240,000 − existing mortgage balance − closing costs
The DSCR Limit
LTV is not the only limit on loan size. The DSCR calculation may further constrain the loan amount. If a $240,000 loan produces a DSCR below your program minimum, the loan is sized down until DSCR clears the threshold.
Example: property worth $300,000, rent $1,800/month. At 80% LTV, the loan is $240,000. PITIA at 7% on $240,000 is approximately $1,917/month. DSCR = 1,800 ÷ 1,917 = 0.94. On the standard 1.0+ program, the loan would be sized down to approximately $220,000 to bring DSCR above 1.0. On the expanded 0.75+ program, 0.94 qualifies at $240,000.
Sub-1.0 DSCR and LTV
On expanded program sub-1.0 DSCR scenarios, the available LTV may be adjusted downward from 80% depending on how far below 1.0 the DSCR falls. A 0.90 DSCR at 80% LTV behaves differently than a 0.76 DSCR at 80% LTV. Submit your deal for a specific scenario assessment: these are evaluated individually.
What's Your Max LTV?
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Submit Deal Summary →How LTV Affects Your Rate
DSCR lenders apply rate adjustments at each LTV tier. Moving from 70% to 75% to 80% LTV typically adds 0.25 to 0.375% to the base rate at each step, depending on the program and credit score. The maximum LTV is not always the optimal choice. An investor pulling 80% LTV at a 7.5% rate versus 75% LTV at 7.0% carries a larger balance at a higher rate. Over a 30-year term, that combination costs more in total interest than a slightly smaller loan at a lower rate. If you have the capital to leave more equity in the property, requesting a lower LTV can improve monthly cash flow and reduce total interest paid. Run both scenarios before deciding.
How to Maximize Your Cash-Out
Three variables directly increase your accessible cash-out:
- Credit score tier. The jump from 679 to 680 FICO on the Standard program moves you from 70% to 75% LTV. On a $300,000 property, that is a $15,000 difference in available cash-out. If your score is at 677 or 678, it is worth pausing the application for 30 to 60 days to clear the 680 threshold. The cost of waiting is usually smaller than the additional cash-out.
- Property value. The appraisal determines the LTV ceiling. Providing the appraiser with recent comparable sales in your area before the inspection helps ensure the estimate reflects current market conditions. Appraisers draw from closed sales within roughly 90 days and a defined geographic radius. Strong comps submitted in advance are more useful than a dispute after the report is delivered.
- DSCR ratio. When DSCR is constraining the loan rather than LTV, the options are the Expanded program at a 0.75 DSCR minimum, or a lower loan amount to bring the ratio back above the standard threshold.
When LTV Is the Binding Constraint
LTV caps the loan in three common situations:
- Appraisal comes in below projections.The loan is sized on the appraised value, not the investor's estimate. Conservative comparable selection or a softening market reduces the ceiling. Providing solid comps before the appraisal is consistently more effective than disputing the report after the fact.
- Program 7 borrowers at 650 to 679 FICO are capped at 75% LTV regardless of how strong the DSCR ratio is. The rate on Program 7 is also higher than Standard, so the combination of lower LTV and higher rate reduces net cash-out proceeds compared to a Standard program borrower at the same property value.
- High-appreciation, low-rent properties. In some markets, property values have risen faster than rents. A $350,000 property at $1,800/month rent with a large loan may produce a DSCR below 1.0, forcing a choice between a lower loan amount on Standard or the Expanded program at higher rates. In these cases, DSCR becomes the binding constraint even though LTV headroom theoretically exists.
The Bottom Line
Maximum LTV on a DSCR cash-out refinance is 80%, but two things limit the actual loan: your credit score (determines which LTV tier you access) and your DSCR ratio (may reduce the loan below the LTV cap). The best way to know your exact number is to submit your deal with your current rent and property value and let us run it.