Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
The Quick Read: A 660 score usually does not block a hard money cash-out refinance, because the loan is sized mainly on the property’s value, the exit plan and the payoff of any existing loan. The score mostly affects which tier the file lands in and how many conditions come with it. The final loan amount is whichever test comes out lowest.
- Typical programs in Lendmire’s wholesale network cap cash-out and rate/term refinances at up to 65% of value, which varies by lender, property, and experience.
- A 620 score is the usual minimum, with additional conditions below 660, so a 660 score sits right at the line where those extra conditions generally stop.
- The loan has to pay off the existing hard money balance, including accrued interest and fees, before any cash reaches the borrower.
- Terms generally run 6 to 18 months, interest-only, so the exit plan is part of the file from day one.
- Everything here is subject to lender guidelines and is not a commitment to lend.
What Is a Hard Money Cash-Out Refinance?
A hard money cash-out refinance is a short-term, asset-based loan that pays off an existing loan on an investment property and returns extra cash to the borrower. The lender looks first at the property, the plan for it and the way the borrower will exit. Personal income is not the main test.
The phrase is used two ways. Some borrowers mean a new hard money loan that pulls equity out of a property they already own. Others mean a longer-term refinance that retires a hard money loan. This article covers the first meaning in detail and then shows how the second connects to it.
Hard money loans here are business-purpose loans on non-owner-occupied residential property of one to four units. The programs are asset-based, but a credit report is still pulled, and that is where the 660 score comes in.
How Does Underwriting Treat the File, Step by Step?
Underwriting moves through six checks in a set order. Each one can shrink the loan, and each one can stop the file if it fails. A 660 score is tested in only one of them.
1. Classify the transaction. If the new loan only pays off the old balance and closing costs, it is a rate/term refinance. If cash comes back to the borrower, it is a cash-out refinance. Both sit at the same leverage cap in the network, but cash-out draws more scrutiny on the use of funds and the exit.
2. Verify the payoff. The lender wants a formal payoff statement from the existing hard money lender. It should show principal, accrued interest, any extension fee and any exit fee. Underwriting sizes the new loan against that payoff figure, not the original loan amount.
3. Order the appraisal. The appraiser gives an as-is value, and on rentals often a market-rent opinion. Lenders borrow the appraisal form names used elsewhere in the industry. The Fannie Mae Selling Guide lists the Single-Family Comparable Rent Schedule (Form 1007) for one-unit investment properties and the Small Residential Income Property Appraisal Report (Form 1025) for two- to four-unit properties. The official form titles are published on the same agency’s forms page. Borrowing the form does not turn the loan into an agency loan. It only sets how the value and rent evidence is presented.
4. Size the loan. The lender applies the leverage cap to the appraised value. Up to 65% of value is the typical ceiling for a cash-out refinance in this network. Then it subtracts the payoff and closing costs. What is left is the borrower’s cash.
5. Review credit. The lender pulls the report and checks the score, recent late payments, collections and open balances. It also looks at the payment history on the loan being paid off. A hard money loan that is already past maturity or in default is a serious red flag.
6. Clear title and conditions. Title work confirms the existing lien and looks for mechanics liens or other claims. The payoff statement and lien release clear the old loan at closing. Entity documents, insurance and proof of liquidity are the usual remaining items.
What Does a 660 Score Actually Do?
A 660 score moves the file into a workable tier, but it does not give the file the strongest tier. It does not disqualify the borrower. Across Lendmire’s wholesale network, a 620 score is the usual minimum for hard money, and additional conditions apply below 660. A 660 score is therefore at the point where those added conditions generally stop applying, though each lender sets its own overlays.
Here is what the score changes and what it does not.
| Item | Does a 660 score move it? | How it shows up |
|---|---|---|
| Eligibility | Rarely | Clears the 620 minimum |
| Added conditions | Usually not | Below 660 is where they stack up |
| Leverage cap | Not directly | Set by value, experience and program |
| Pricing and terms | Can | Varies by lender and file |
| Exit scrutiny | Indirectly | Lender leans harder on the plan |
Experience matters more to leverage than the score does. The top hard money leverage tiers are tied to documented completed projects, and they are reserved for experienced investors. First-time investors qualify at the lower tiers. A borrower with a 660 score and a long project record can look stronger than a borrower with a 740 score and no track record.
Why does credit matter at all in an asset-based loan? The property is the collateral, but the lender still wants to know how the borrower behaves when a project runs late. A weak history of missed payments tells the lender the borrower may struggle to carry the loan through a delay. The score is a signal about that, not a measure of income.
Why Does the Lowest Result Win?
The loan is sized by several independent tests, and the smallest result controls. A strong result on one test does not rescue a weak result on another. This is the idea most borrowers miss.
| Test | What it measures | How it fails |
|---|---|---|
| Value cap | Appraisal times the leverage cap | Appraisal comes in low |
| Payoff | Existing balance plus costs | Fees and interest eat the equity |
| Credit tier | Score and payment history | Late payments add conditions |
| Exit | Plan to repay at maturity | Plan has no clear takeout |
On a 660 score, the credit tier is rarely the binding constraint. The value cap and the payoff usually are. A borrower who bought at a discount and rehabbed may still find that payoff, interest and fees take most of the room under the cap.
What Does a Worked Scenario Look Like?
Run the numbers on a one-unit rental with a rehab finished and an as-is appraisal that supports the borrower’s expected value. Use percentages only, since every file differs.
Say the cap is 65% of appraised value. Say the payoff on the existing hard money loan, including accrued interest and fees, equals 52% of that value. Closing costs run another 3% of value. The loan can be sized to the cap, which leaves roughly 10% of value as cash to the borrower.
Now change one input. If the appraisal comes in lower, the cap shrinks with it, while the payoff stays the same. A payoff of 52% of the original expected value may now equal 58% of the new, lower value. After costs, almost nothing is left. The same borrower, the same score and the same property produce a very different cash-out result.
This is why borrowers should know the payoff-to-value gap before applying. If the gap is too thin, a rate/term refinance that only retires the old loan may be the realistic step. Cash-out can come later.
What Compensating Factors Help a 660 File?
Strength in other parts of the file can offset a mid-range score. Lenders read these factors together, not one at a time.
| Factor | How an underwriter reads it |
|---|---|
| Equity cushion | Lower leverage reduces loss risk |
| Completed projects | Shows the plan has been done before |
| Liquidity | Proves the borrower can carry the loan |
| Clear exit | Shows how the loan gets repaid |
| Clean payoff history | Shows the existing loan was paid on time |
A borrower asking for less than the maximum is usually in a better position than one asking for every dollar. Asking for a smaller cash-out amount leaves more equity as a buffer. That can help a file with a 660 score that has other soft spots.
Where Does the General Rule Break?
Seasoning. Seasoning is the time the borrower has held title. Hard money lenders vary on how much they require for cash-out, and a payoff-only refinance generally needs less than a cash-out. Inside the seasoning window, a lender may size on the lower of appraised value or cost basis, meaning purchase price plus documented rehab. After the window, the appraisal governs.
Delayed financing. A rule from the conventional world lets cash buyers refinance and take out their purchase money soon after buying. It requires that the purchase money not be secured by the subject property. A hard money purchase is secured by the property, so it generally does not qualify as a cash purchase. Do not plan on this exception.
Maturity before seasoning ends. If the loan matures before the lender’s seasoning period is met, the borrower may have to pay an extension fee. That raises the payoff and shrinks the cash-out. The usual fix is a payoff-only refinance first.
Two- to four-unit properties. These are appraised on Form 1025, which presents rent unit by unit. The rent roll must match the appraiser’s unit schedule or the file stalls.
Unsupported property types. The network does not offer these loans on commercial property, land, owner-occupied homes or manufactured homes. A property that falls outside one-to-four residential units is not eligible.
What Documents Does the File Need?
Clean documents give the lender fewer reasons to go back to the borrower with questions. A typical file includes:
- A current payoff statement from the existing lender
- The appraisal and, for rentals, the rent schedule
- Entity documents if the property is held in an LLC, subject to lender program eligibility
- Proof of liquidity, such as recent account statements
- A credit report authorization and an explanation for any recent late payments
- Evidence of the completed work, such as a scope of work and photos
- Insurance quotes that cover the full replacement cost
- A signed purchase and rehab history that shows what the borrower paid and spent
Insurance is a common stall point. A binder that predates the appraisal or has gaps in coverage can send the file back for new paperwork.
What if the Score Lands Just Under 660?
A score of 655 is not the same as 660 to a lender, because overlays often sit at round numbers. Borrowers who see a gap can take practical steps.
Paying down credit card balances before the report is pulled may lift the score by lowering utilization. Waiting a month for a rescore after a paydown can be worth it if the file has no deadline pressure. A smaller cash-out request can offset the added conditions. A co-borrower can help on income or experience, but the lower score generally governs.
None of these moves is a promise. They are ways to put the file in front of lenders in the best order. Lendmire’s piece Can You Get Approved for a Hard Money Cash-Out Refinance With a 660 Credit Score? covers the approval side in more detail. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
How Does the Maturity Clock Affect Timing?
Hard money terms generally run 6 to 18 months, interest-only, with no prepayment penalty. That means the exit plan has to be built before the loan closes, not near maturity. Know the maturity date, the seasoning date and the gap between value and payoff.
Many investors refinance out of hard money into long-term rental financing once the property is stabilized. Lendmire brokers that path. In the wholesale network, DSCR cash-out refinances on standard rentals generally top out around 75% LTV, with about 6 months of seasoning and a score near 660 as the common expectation. Stronger leverage tiers open at 700 and above. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide walks through that structure.
One caution applies. A DSCR of 1.00 means rent covers the mortgage payment, nothing more. Repairs, vacancy, management and capital costs sit outside that ratio, so clearing 1.00 does not by itself mean the property produces positive cash flow.
Key Terms Defined
Asset-based underwriting: The lender sizes the loan mainly on the property’s value and the exit plan, not on the borrower’s personal income.
Cash-out refinance: A new loan that pays off the old one and gives the borrower the extra cash.
Rate/term refinance: A new loan that only pays off the old balance and costs, with no extra cash to the borrower.
Seasoning: The length of time the borrower has held title to the property.
Payoff statement: A lender’s written figure for what it takes to retire a loan, including interest and fees.
Loan-to-value (LTV): The loan amount divided by the property’s appraised value.
Frequently Asked Questions
Does a 660 credit score hurt a hard money cash-out refinance?
Usually it affects the terms more than the decision. The common minimum in the network is 620, with added conditions below 660, so 660 sits right at that line. The loan size is still controlled mostly by the value cap, the payoff and the exit plan. Each lender sets its own overlays, so the result varies by file.
How much cash can I take out?
Typical programs in the network allow up to 65% of value on a cash-out or rate/term refinance, which varies by lender, property, and experience. From that amount, the lender subtracts the payoff and closing costs. What remains is the cash. If the payoff is already a large share of value, little or nothing may be left.
Does a hard money loan count as cash for delayed financing?
Generally no. A hard money loan is a lien on the property, so the purchase is not treated as a cash purchase. The refinancing lender sees the lien on title and applies its own seasoning rules.
Do I need to document personal income?
Hard money is asset-based, so personal income is not the main test. Lenders still pull credit and ask for proof of liquidity. Qualification runs on the property, the plan and the exit, subject to lender guidelines.
What if my hard money loan matures before I can refinance?
The borrower may have to pay an extension fee, which raises the payoff and cuts the cash-out. Many investors do a payoff-only refinance first and take cash out later. Starting the process well before maturity is the best protection.
Next Step
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals. Lendmire is a mortgage broker that works with a wholesale lender network across 41 markets, including Washington, D.C. The best program for your situation depends on the property, your credit profile and your experience.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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References
2. Fannie Mae Selling and Servicing Guide Forms
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get Approved for a DSCR Cash-Out Refinance Instead of a Home Equity Investment? · How to Qualify and Apply for a Super Jumbo DSCR Cash-Out Refinance With 90% Rent Coverage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.