Rental investor programs
Cash-Out Refinance for Rental Properties
A cash-out refinance replaces an existing rental loan with a new loan and releases equity to the borrower. Investors use it to fund another acquisition, a renovation, or reserves. The property still has to support the new payment, and the investor reviews credit, LTV, and reserves.
At a glance
| Best for | Investors with equity who want liquidity without selling |
|---|---|
| Property types | Single-family rentals, 2-4 units, condos, townhomes |
| Loan purpose | Cash-out refinance |
| Term options | 5, 7, 10, or 30-year fixed |
| LTV / cash-out | Up to 75-80% LTV; seasoning and max cash-out vary |
| DSCR | 1.20+ typical |
| Credit | 680+ typical |
| Entity | LLC, corporation, or limited partnership |
| Documentation | Property income, current loan statement, entity docs, reserves |
| Close time | 30-45 days typical |
Who it fits
This program fits investors whose rental has appreciated or whose current loan balance is low relative to value. It is not a substitute for a HELOC on a primary residence; the subject property is an investment property.
- Pulling equity from a stabilized rental
- Funding the down payment on another property
- Renovating the subject property or another asset
- Moving from a short-term loan to a long-term rental loan
What the investor reviews
The investor reviews the property's income, the new loan-to-value, the borrower's credit, and the source of the existing loan.
- Current loan balance, payment history, and payoff
- Appraised value and market rent
- DSCR on the new loan
- Credit, reserves, and entity structure
- Seasoning and use of funds
How the process works
We compare cash-out options across the panel and flag prepayment or seasoning issues before you commit.
- Scenario review: value, loan balance, cash need, timeline
- Investor match: LTV, DSCR, credit, seasoning
- Application and documents: current loan, entity, reserves
- Appraisal and underwriting
- Closing and funding
What to prepare
Cash-out files need a clear picture of the existing debt and the property's income.
- Current mortgage statement and payoff
- Rent roll or lease
- Entity documents and guarantor information
- Insurance declaration
- Bank statements or reserves documentation
Frequently asked questions
How much equity can I access?
Many investors allow up to 75-80% LTV, but the final number depends on the property, DSCR, credit, and investor.
What seasoning is required?
Seasoning varies by investor. Some require a minimum holding period; others review the file case by case.
Can I use the cash for another property?
Yes, using the proceeds for another acquisition or renovation is common. The investor may ask about the use of funds.
Will I trigger a prepayment penalty?
Your current loan may have a prepayment penalty. Review the payoff before you refinance; the new loan may also have a prepayment structure.
Can I cash out on a vacant property?
Some investors use appraised rental income for a vacant property. Availability varies.
What credit score do I need?
680+ is typical, but the minimum varies by investor and compensating factors.
How long does it take?
30-45 days is typical. Appraisal and payoff coordination can extend the timeline.
Related programs
Tesni, LLC is a U.S. business lending marketplace and broker, not a direct lender. We do not approve loans, fund loans, or set pricing. All credit decisions are made by third-party investors subject to their own underwriting and program availability. Guidelines, eligibility, and availability vary by investor and state.