Financing strategy · Refinance
Investment Property Refinance
Refinancing a rental can lower the payment, convert a short term or hard money loan into long term financing, or release equity for the next acquisition. Investors typically choose between agency financing, which uses personal income, and DSCR financing, which uses the property's rent.
Guidance by Manny
Who it is designed for
- Investors exiting a fix and flip or hard money loan
- Investors pulling equity for another purchase
- Investors restructuring an adjustable or balloon payment
Eligible occupancy types
- Investment property
Down payment or equity
Not applicable. Loan to value limits are lower on investment property than on a primary residence, and lower still on cash out.
Major benefits
- Convert short term debt into long term financing
- Access equity for the next acquisition
- DSCR options avoid a personal debt to income calculation
Important considerations
- Investment property pricing is higher than owner occupied
- Cash out loan to value limits are tighter
- DSCR loans commonly carry prepayment penalties
- Seasoning requirements may apply after a recent purchase or renovation
How qualification generally works
- Appraisal with rent schedule, or executed leases
- Credit and reserves under the chosen program
- For agency financing, full income documentation
Documents commonly requested
- Photo ID and entity documents if you are closing in an LLC
- Lease agreements or a rent schedule appraisal for subject and other rentals
- Two months of asset statements for down payment, closing costs and reserves
- Mortgage, insurance, tax and HOA information on the schedule of real estate owned
- Business or investing experience summary, if requested by the program
Not sure this is the right mortgage?
Tell Manny what you're trying to accomplish. He can help you compare this program with other financing options that may fit your situation — your income and how it is documented, your credit and assets, the property and how you will use it, your timeline, and the guidelines that apply. Most borrowers have more than one workable path.
Frequently Asked Questions
Related programs and next steps
DSCR Loans
Investment property financing qualified on rent, not personal income.
Learn more RefinanceCash Out Refinance
Replace your mortgage with a larger one and take the difference in cash.
Learn more InvestmentConventional Investment Property Loans
Agency financing for rentals, qualified on your personal income.
Learn more InvestmentFix and Flip Loans
Short term financing for purchase plus renovation on a resale or refinance exit.
Learn moreConsidering investment property refinance?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.