The Quick Read: A hard money cash-out refinance replaces your current loan with a short-term, asset-based loan and pays you the leftover equity, and you can usually sign it remotely when the property’s state, the title company, and the lender all support remote online notarization instead of an in-person closing table.
- Leverage on these loans is capped by value, typically up to 65% of value on a refinance, and varies by lender, property, and experience.
- Remote signing is a closing-logistics question, not an underwriting shortcut. The lender’s rules still apply in full.
- Three parties must agree to a remote closing: the state where the property sits, the title or closing agent, and the lender.
- Hard money terms run short, so the exit plan matters more than the cash-out itself.
What Is a Hard Money Cash-Out Refinance on a Rental?
It is a short-term loan, secured by the property, that pays off what you owe and sends you the remaining equity as cash. The lender cares mostly about the asset: its value, its condition, and your plan for getting out of the loan. Your personal income plays a smaller role than it would with a bank.
On the programs we place files with, the terms are short and simple. Terms typically run 6 to 18 months, payments are interest-only, and there is no prepayment penalty. Loans reach up to $5,000,000, with larger amounts by exception, and the collateral is non-owner-occupied residential property with one to four units. Every figure here varies by lender, property, and experience, and none of it is a commitment to lend.
The label matters. If the new loan only pays off the old debt and reasonable closing costs, it is a rate-and-term refinance. If cash comes back to you at closing, it is a cash-out. A payoff of a flip loan that also returns rehab money to you is a cash-out, whatever you call it.
How Does Underwriting Treat It, Step by Step?
The deal works through the same stages with almost every lender in our network, though each lender weighs them differently. Here is the sequence.
1. Scenario review. The broker looks at the current value, the payoff balance on the existing loan, whether the property is rented, your credit, and your goal for the cash.
2. Cash-out or rate-and-term label. The payoff and the cash returned decide this, not your preference.
3. Seasoning check. Seasoning is the time you have owned the property or held the current loan. Lenders use it to decide whether to size the new loan on a fresh appraisal or only on what you paid and spent. This is lender policy, and it differs widely from one lender to the next.
4. Appraisal. The appraisal sets the value that the loan-to-value cap applies to. For a rental, the appraiser may also supply a rent schedule on the 1007 form for one unit or the 1025 form for two to four units.
5. Underwriting. Title, insurance, credit, property condition, and your exit plan are reviewed.
6. Signing. The lender, the closing agent, and the state decide the method, covered below.
7. Payoff and funding. The old loan is paid off first, and any remaining proceeds go to you.
Credit is part of step five. Most of our hard money programs ask for a 620 minimum score, with additional conditions below 660. First-time investors can qualify at the lower leverage tiers. Underwriting stays asset-based, so the property, the plan, and the exit carry the file.
What Leverage Can You Expect on a Refinance?
Expect a lower ceiling than on a purchase or a rehab loan. Our hard money programs fund up to 65% of value on a cash-out or rate-and-term refinance. Fix-and-flip loans are sized differently: they run as a share of project cost, tiered by completed projects and always capped at 75% of after-repair value. Those cost-based tiers do not apply to a refinance.
Put another way, a refinance sized on value gives you less room than the headline numbers you may have seen for flips. A property worth a given amount supports a smaller loan than the same property bought and rehabbed with cost-based leverage.
For comparison, a long-term DSCR loan (one that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines) tops out around 75% LTV on a cash-out of a standard rental across most of the network. That is a different product with different seasoning and a much longer term. We return to it near the end.
Can You Really Sign a Hard Money Refinance Remotely?
Usually yes, if three things line up. The property’s state must allow remote notarization, the closing or title agent must offer it, and the lender must accept the resulting documents. State law alone does not settle it. Proof’s guide to remote closing makes the same point: both the lender and the title company must support a remote closing, even where state law permits it.
The state piece is the easiest to check. Most states and the District of Columbia have a remote online notarization law or order, and the American Land Title Association tracks adoption as laws change. Published state counts conflict, so check the property’s state directly rather than relying on a number.
Here are the signing options you will meet.
| Method | How it works | Best fit |
|---|---|---|
| Remote online notarization | Live audio-video, ID checks, electronic seal | Out-of-state borrowers, fully remote |
| Hybrid closing | Some documents signed online, some in person | Mixed document sets |
| In-person electronic notarization | Notary present, documents signed on a device | Local signers who want fewer papers |
| Mobile notary | Notary travels to you with printed documents | States or lenders without remote support |
Only remote online notarization is fully remote. A mobile notary is the most common fallback because it works almost anywhere a notary will travel.
Which State Decides Your Route?
The property’s state usually drives the closing route, not where you live. Three locations can differ: where the property sits, where you sign, and where the notary holds a commission. A closing agent in the property’s state will tell you which combinations their state and recorder accept.
Some states are tighter than others. Treat that as a reason to ask early, and confirm with your title company or an attorney. If remote notarization is unavailable, a mobile notary or a hybrid packet is the practical path.
Where the General Rule Breaks
Remote signing is routine on a clean file. These situations are where it stops being routine.
LLC or entity borrowers. Many investors hold rentals in an LLC, subject to lender program eligibility. The entity signs through an authorized person, so the closing agent will want formation documents, an operating agreement, and proof of that person’s authority. A power of attorney is not accepted by every lender, so ask before you plan around one.
Several signers in different places. Partners or co-borrowers can often sign separately, but each signer needs ID verification, and each needs a notary available. One partner without a reliable connection can hold up the whole closing.
Business-purpose status. Our hard money loans are for business-purpose investment property only. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Federal truth-in-lending rules exempt credit extended primarily for a business purpose, as well as credit extended to someone other than a natural person. Consumer disclosure timelines therefore generally do not apply to these loans.
That exemption is not automatic, though. Federal examiners judge purpose on the facts, and paperwork stating an intended use may not be enough by itself. If you spend cash-out proceeds on personal expenses, the loan’s business-purpose status can be questioned. Keep the proceeds tied to the investment business.
Remote signing does not change underwriting. The loan still needs the same appraisal, title, insurance, and approval. Remote signing only changes how the documents are signed.
What to Ask Before You Commit
A broker that shops several wholesale lenders can run these questions for you. If you are talking to a lender directly, ask them yourself.
- Which signing methods does the closing agent offer for this property’s state?
- Does the lender accept remotely notarized documents on a business-purpose refinance?
- Are any documents still signed in wet ink?
- Will the lender accept an entity signer, and what authority documents does it require?
- How does the lender treat seasoning on a payoff of an existing short-term loan?
- What is the maximum loan-to-value on a refinance for my property type and experience level?
Prepare your side as well. Have government ID, entity documents, current insurance, the payoff statement for the existing loan, and a signing plan ready. Confirm wire instructions by phone using a number you already trust, because remote closings attract wire-fraud attempts.
A Worked Scenario
Picture an investor who lives out of state and owns a two-unit rental through an LLC. She bought it with short-term financing, finished the rehab, and signed leases on both units. She wants her renovation capital back so she can fund the next purchase.
She asks for a hard money refinance and learns the lender will lend up to 65% of the appraised value. The payoff of the old loan comes out of that first, and only the remainder returns to her as cash. If the appraisal comes in below her target, the cash shrinks, and a large enough shortfall can leave her bringing money to the table.
The lender and the property’s state both support remote online notarization, so she signs from home. Her partner signs the same day from a different state using the same platform. The title agent then pays off the old loan and sends her the net proceeds.
The structure worked for the signing logistics.
When Hard Money Is the Wrong Tool
Hard money is a bridge, not a destination. Terms are 6 to 18 months, and there are no multi-year options on the current program. If you plan to hold the property as a rental, you will need long-term financing before the term ends.
Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. DSCR is the ratio of the property’s monthly rent to its full monthly payment of principal, interest, taxes, insurance, and any HOA dues, together called PITIA. On most files in our network, DSCR cash-out refinances top out around 75% LTV on a standard rental, with about 6 months of seasoning as the common expectation. A coverage of 1.00 is where select programs start, and a separate select-lender path goes below 1.00 with leverage and terms adjusted.
Clearing 1.00 is not the same as positive cash flow. The ratio looks only at rent against PITIA, so repairs, vacancy, management, and utilities sit outside it.
Our complete DSCR loans guide walks through the long-term side. For a closer look at remote closings on that product, see Lendmire’s piece DSCR Cash-Out Refinance Lenders With Remote Signing on an Investment Property.
Key Terms Defined
Hard money loan: A short-term, asset-based loan secured by the property, underwritten mainly on value, plan, and exit.
Cash-out refinance: A new loan that pays off the old one and returns the extra equity to the borrower as cash.
Seasoning: The time a lender wants you to have owned the property or held the current loan before sizing a new loan on its current value.
Remote online notarization: A notarial act done over live two-way audio-video, with identity verification and an electronic seal.
Hybrid closing: A closing where some documents are signed electronically and others are signed in person or on paper.
Loan-to-value (LTV): The loan amount as a percentage of the property’s appraised value.
PITIA: Principal, interest, taxes, insurance, and any association dues, the full monthly obligation on a property.
Frequently Asked Questions
Can a hard money lender close a cash-out refinance entirely online?
Sometimes. It needs a lender that accepts remotely notarized documents, a closing agent that offers remote online notarization, and a property state that allows it. If any one of those is missing, a mobile notary or a hybrid closing usually covers the gap.
Does remote signing change what I qualify for?
No. Remote signing only changes how documents are signed. Leverage, credit, appraisal, title, and your exit plan are reviewed the same way, so a remote closing never loosens an eligibility rule.
How much cash can I take out on a hard money refinance?
Our hard money programs typically lend up to 65% of value on a cash-out or rate-and-term refinance. The old loan’s payoff comes out first, and only the remainder is cash. The exact limit varies by lender, property, and experience.
Can an LLC sign remotely?
Often yes, subject to lender program eligibility. The signer must be authorized to act for the entity and must supply formation documents and proof of authority. Ask whether the lender accepts a power of attorney before relying on one.
Is a hard money refinance a long-term solution?
No. Terms run 6 to 18 months with interest-only payments, so most investors plan an exit into longer-term rental financing. The refinance fits best when you need the cash now and have a clear plan for what comes next.
Next Steps
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 arranges investor financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. The right program for your file depends on your property type, credit, leverage need, and documentation.
About Lendmire
Lendmire, NMLS# 2371349, is a non-QM mortgage broker serving real estate investors in 41 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Proof: a guide to closing on a house remotely
2. ALTA: digital closings and state remote online notarization laws
3. CFPB Regulation Z, Section 1026.3 (exempt transactions)
4. CFPB TILA examination procedures
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a Lender Counts Reserves on a BRRRR Cash-Out Refinance · DSCR vs. Conventional Cash-Out Refinance for a St. Charles MO Rental · Short-Term Rental Cash-Out Refinance Requirements When Your Mortgage Is Almost Paid Off
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.