If you currently own rental properties financed with traditional mortgages or existing DSCR loans, you may be wondering: Can you refinance with a DSCR loan? The answer is yes—and in many cases, it’s one of the smartest financial moves real estate investors can make.
In this comprehensive guide, you’ll learn:
✔ Exactly how DSCR refinancing works
✔ When refinancing with a DSCR loan makes sense
✔ Current DSCR refinance rates & requirements
✔ Step-by-step refinancing process
✔ Top lenders for DSCR refinances
✔ Pro tips to maximize your savings
Whether you’re looking to lower payments, pull out cash, or restructure your portfolio, this guide will show you how to leverage DSCR refinancing to grow your real estate business.
What Is a DSCR Refinance Loan?
A DSCR refinance loan replaces your existing mortgage with a new loan that qualifies based on the property’s cash flow rather than your personal income. These loans use the same Debt Service Coverage Ratio (DSCR) underwriting as purchase loans:
DSCR = Net Operating Income (NOI) / Annual Debt Payments
Most lenders require:
- Minimum 1.0 DSCR (break-even)
- 1.25+ DSCR preferred for best rates
5 Key Benefits of Refinancing With a DSCR Loan
- No Income Verification
- Ideal for self-employed investors
- No W-2s or tax returns required
- Cash-Out Options
- Tap into equity (up to 75-80% LTV)
- Reinvest in more properties
- Portfolio Growth
- Remove personal liability (non-recourse options)
- Finance unlimited properties
- Better Terms
- Switch from adjustable to fixed rates
- Extend loan terms (up to 30 years)
- Debt Restructuring
- Consolidate multiple loans
- Refi out of hard money/private loans
When Does DSCR Refinancing Make Sense?
1. When Rental Values Have Increased
Example: Your property appreciated $100k—refinance to pull out cash while maintaining 1.25 DSCR.
2. To Lower Interest Rates
Refi from 8% hard money loan → 6.5% DSCR loan.
3. To Extend Loan Terms
Switch from 15-year → 30-year amortization to improve cash flow.
4. To Remove Personal Guarantees
Transition from personally-guaranteed loans to non-recourse DSCR loans.
5. When Your Financial Situation Changes
Lost W-2 job but rentals perform well? DSCR loans don’t check personal income.
DSCR Refinance Requirements (2025)
| Requirement | Standard | Truss Financial Group |
|---|---|---|
| Credit Score | 620+ | 580+ |
| DSCR Ratio | 1.0-1.25+ | 1.0+ |
| Loan-to-Value (LTV) | 70-80% | 75% |
| Property Type | Rentals Only | Rentals + Airbnbs |
| Reserves | 6-12 months | 6 months |
| Prepayment Penalty | Varies | None |
How to Calculate If Refinancing Makes Sense
Example Refinance Scenario:
- Current Loan: $200k @ 7% (15 yrs remaining)
- New Loan: $250k @ 6.5% (30 yrs)
- Property NOI: $24,000/yr
Calculation:
- Current Payment: $1,797/month
- New Payment: $1,580/month
- DSCR: $24,000/($1,580×12) = 1.27
Result: Lower payment + $50k cash out while maintaining strong DSCR.
Step-by-Step DSCR Refinance Process
- Evaluate Your Property
- Confirm current rents support 1.0+ DSCR
- Get new appraisal (if needed)
- Choose a Lender
- Compare at least 3 options
- Consider: Truss Financial Group, Kiavi, Visio
- Submit Application
- Provide rent rolls, leases, expenses
- Credit pull & property appraisal
- Underwriting
- 2-4 week process typically
- Lender verifies DSCR
- Closing
- Pay closing costs (2-5% of loan)
- New loan pays off old mortgage
Best DSCR Refinance Lenders
🥇 #1 Recommendation: Truss Financial Group
✅ 580+ credit scores accepted
✅ 1.0 DSCR minimum
✅ Cash-out up to 75% LTV
✅ No prepayment penalties
👉 Get a Refinance Quote from Truss Financial Group
Other Top Lenders
| Lender | Credit Min | DSCR Min | Special Features |
|---|---|---|---|
| Kiavi | 620 | 1.0 | Fast online process |
| LendingOne | 620 | 1.2 | Fix-and-stabilize loans |
| Visio | 600 | 1.0 | Long-term rentals |
3 Pro Tips for Successful Refinancing
- Time It Right
- Refi when rates drop 0.5-1% below current
- Avoid prepayment penalties on existing loan
- Boost Your DSCR First
- Raise rents (if market supports)
- Reduce expenses where possible
- Prepare Documentation
- 12 months rent rolls
- Current lease agreements
- Expense reports
FAQ: DSCR Refinancing
❓ Can I refinance a primary residence with a DSCR loan?
No—DSCR loans are for investment properties only.
❓ How much cash can I take out?
Typically 70-80% of property value, minus existing loan.
❓ Are DSCR refinance rates higher?
Yes—typically 0.5-1.5% higher than owner-occupied loans.
❓ Can I refinance multiple properties at once?
Yes! Portfolio refinancing options exist.
🚀 Ready to Refinance Your Rental Property?
DSCR refinancing can unlock your property’s equity and improve cash flow—all without income verification. Truss Financial Group offers some of the most investor-friendly terms available: