Lender guide
How to Choose a Cash-Out Refinance Lender
A cash-out refinance frees trapped capital, or overloads a property with debt. The lender's leverage and seasoning, and your new ratio, decide which. Here is how to judge them.
A cash-out refinance is the engine that recycles capital through a portfolio, and it is also where investors take on more debt than a property can carry. The right lender gives you leverage and a fair seasoning window without pushing the ratio too thin. Where we link to a lender, we say so plainly. See our disclosure.
The five things that actually separate cash-out lenders
- Maximum cash-out leverage. Cash-out is sized off the property's value, commonly up to 75 percent loan-to-value. A higher cap frees more capital, but watch the effect on your payment.
- Seasoning requirement. How long you must own the property before they lend against its current value rather than what you paid. This is the trap that catches BRRRR refinances; confirm it up front.
- The ratio on the new, larger payment. Pulling equity raises the loan and the payment. A good lender helps you confirm the property still covers itself; a careless one lets you over-leverage. Run the new payment yourself.
- Rate premium over a purchase. Cash-out usually prices a little above a purchase loan. Compare the premium across lenders, not just the headline rate.
- Prepayment terms. If you may refinance or sell again soon, the prepayment penalty on this new loan matters. Match it to your hold.
A comparison you can fill in
| Compare | Lender A | Lender B |
|---|---|---|
| Max cash-out LTV | ||
| Seasoning requirement | ||
| Rate and points | ||
| Min DSCR on new payment | ||
| Prepayment penalty |
Compare current rates. These are starting points to research, not endorsements. Confirm terms on each lender website. Some links may be affiliate links; see our disclosure.
Established lenders to research
These are well-known names offering DSCR cash-out refinances to investors. We list them as starting points, not endorsements; confirm current terms directly. Our independent Rate and Terms Survey tracks cash-out pricing.
- Kiavi offers DSCR rental loans including cash-out refinances.
- Visio Lending focuses on long-term rental loans including cash-out.
- Other names worth a quote include New Silver and Lima One Capital, among others.
Our standing rule. We update this guidance from the quarterly survey, disclose any affiliate relationship, and never let a referral fee change who we include or how we describe them.
Next, check the new payment on the DSCR calculator, then read the full method in the cash-out refinance guide.