The Quick Read: A super jumbo DSCR cash-out refinance fits one large rental where the property’s rent is the strong part of the file. A portfolio DSCR loan fits an investor with several rentals who wants one note and pooled coverage. Both can retire a hard money second, subject to lender guidelines, appraised value, and the payoff statement.
- A single-property DSCR cash-out on an investment property tops out at 75% LTV, with about 6 months of seasoning from title recording.
- The portfolio structures put 2 to 20 properties (30-year version) or five or more (term loan) under one note.
- Pooled coverage lets stronger rentals offset weaker ones. A single-property loan tests that one property alone.
- Hard money maturities are short (6-18 months), so the exit has to be lined up before the bridge runs out. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
This article referees the two long-term exits, so you can see which one matches your collateral and your goals. Lendmire is a broker. It arranges these loans through its wholesale network of DSCR lenders, and every figure below is a program range, not a quote.
Side-by-Side
The portfolio column covers the 30-year portfolio DSCR loan and the rental portfolio term loan. “Portfolio DSCR loan,” “blanket loan,” and “cross-collateralized loan” all mean the same thing here: one note secured by several rentals. A bank’s “portfolio loan,” meaning a loan the bank keeps on its own books, is a different sense of the word and is not the subject of this table.
| Factor | Super jumbo DSCR cash-out | Portfolio DSCR loan |
|---|---|---|
| Collateral | One rental property | 2-20 properties, or 5+ on the term loan |
| Review basis | Rent vs. PITIA on that property | Pooled rent vs. pooled debt service |
| Cash-out ceiling | Up to 75% LTV, seasoned | Up to 75% of pooled value, seasoned |
| Loan size | Up to $3,000,000 standard | $300,000-$5,000,000 (30-year); $500,000-$50,000,000 (term) |
| Documentation | Lease or rent schedule, appraisal, entity papers | Same per property, plus pool-level review |
| Property types | SFR, 2-4 unit, condo, townhome | Same; 5+ units only on the term loan |
| Entity vesting | LLC common, subject to program terms | SPE (often an LLC) required on some structures |
| Reserves | Often around 6 months PITIA; about 9 above $1,500,000 | Held for taxes, insurance, capex on the term loan |
| Release of one asset | Not applicable | Follows loan documents; release price runs above allocated balance |
| Timeline | Depends on appraisal and title | Depends on the number of appraisals and title searches |
Treat every cell as a published range. Terms vary by lender, property, and experience, and nothing here is a commitment to lend.
What Paying Off a Hard Money Second Actually Involves
Both routes start the same way. The hard money lender issues a payoff statement, and the new lender’s title company must show every lien it is replacing paid at closing. A second lien sitting behind a first mortgage adds a wrinkle: a new first-lien lender generally needs both liens satisfied, because subordinating to an existing first is rare on this type of loan. Ask for payoff letters on both notes, including per-diem interest, early.
Next comes classification. Add up the payoff on both notes plus closing costs, and compare that total with the new loan amount. If the new loan exceeds that total, cash goes to you and it is a cash-out. That label drives the leverage ceiling. On a DSCR investment-property cash-out, the ceiling is 75% LTV. A rate-and-term refinance with no cash back is sized under a separate, less restrictive tier than cash-out, though it is still capped by the lender’s value-based limits and never by the cost-based structure that hard money loans use. Seasoning for cash-out is about 6 months, measured from title recording, and the lender orders its own appraisal. That appraisal sizes the loan, not a projected after-repair value.
Hard money leverage is cost-based, so the hard money payoff can sit above what a 75% value-based cash-out supports. Hard money fix-and-flip loans reach up to 75% of after-repair value, and a hard money bridge purchase runs up to 80% of purchase price. If the stacked payoff exceeds what the new loan allows, you bring cash, pay down, or stage the exit. Plan that gap before the term runs out.
DSCR compares rent to PITIA: principal, interest, taxes, insurance, and any HOA dues. The program minimum is 1.00, so a rental whose qualifying rent falls below PITIA does not meet it, and a rental at or above 1.00 meets the floor. Meeting that floor is not the same as positive cash flow, since repairs, vacancy, management, and capex sit outside the calculation. Lenders also differ on how they define debt service, so the specific guideline controls.
When the Super Jumbo DSCR Cash-Out Is the Better Fit
“Super jumbo” is industry shorthand, not a regulated category. It marks the point where a lender’s standard grid steps up to larger balances. Trade press describes non-QM jumbo financing reaching $3 million or more. In the network, standard DSCR programs run up to $3,000,000, and above $2,500,000 most programs hold to 30-year fixed structures.
This route fits when:
- One property carries the whole payoff. A single high-value rental, with a hard money second behind or alongside a first, can be refinanced as one loan.
- The rent is the strong part of the file. DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Personal income is not the constraint.
- You want each asset on its own. A single-property loan leaves your other rentals free to sell, refinance, or finance separately.
- You don’t want pooled risk. One weak property cannot drag down a pool, because there is no pool.
The tradeoffs are plain. The 75% cash-out ceiling applies to that one property’s appraised value, so thin equity limits proceeds no matter how strong the rent is. Credit matters too: a 620 floor exists in parts of the network, most programs want around 660, and 700+ opens the strongest tiers. Reserves commonly run around 6 months of PITIA, and loans above $1,500,000 typically step up to about 9 months.
A larger down payment, or here a larger equity cushion, can lower the payment and lift the coverage ratio. It never erases the leverage cap, credit floor, reserve rule, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
One scenario: picture an investor with a single high-value duplex, a first mortgage, and a hard money second near maturity. If appraised value supports payoff of both liens at or under 75% LTV and rent covers PITIA at roughly 1.2x, the one-loan cash-out is a clean exit. If the stack lands above 75%, the fix is a paydown, not a different loan type. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
When the Portfolio DSCR Loan Is the Better Fit
The portfolio DSCR loan puts several rentals under one note. The network offers two structures. The 30-year portfolio DSCR loan covers 2 to 20 properties, $300,000 to $5,000,000 (larger balances on review), up to 80% of value on purchase and rate-and-term, with a 30-year term and an interest-only period available. The rental portfolio term loan covers five or more properties or units, $500,000 to $50,000,000 (larger balances on review), up to 75% of value, with fixed 3, 5, 7, or 10-year terms and a balloon at maturity. Subject to lender guidelines, it can be recourse or non-recourse. Non-recourse looks to the real estate, with carve-outs such as fraud and bankruptcy.
Cash-out on either structure never exceeds 75% of pooled value. Inside the first six months of ownership, the loan is also capped at 90% of total cost (purchase price plus documented improvements). From six to twelve months the cost cap is 100% of total cost, the leverage ceiling still applies, and the loan is the lower of the two. After twelve months, appraised value alone is the basis. A rate-and-term refinance is not subject to the cost-basis cap.
This route fits when:
- The hard money second is secured by one property but your equity is spread across several. Pooling lets a seasoned, high-equity rental support the payoff of a thinner one.
- Coverage is uneven. Pooled coverage is measured on combined rent against combined debt service, so stronger properties can offset weaker ones. A rental below 1.00 can sit in the pool, but underwriting tests the pooled coverage, the leverage, and the terms.
- You want one note and one set of covenants. Multi-market cross-collateralization on the term loan allows properties in several markets under one loan.
- You hold five or more units or properties. Small multifamily is eligible only inside the rental portfolio term loan.
The costs are structural. The remaining pool must keep covering its debt service if you sell one property. Partial releases, substitutions, and sales follow the loan documents, and the release price runs above the property’s allocated balance. The term loan’s prepayment uses yield maintenance. Credit floors start at 640 and run higher (680 or 720) on some structures. Some structures require a special-purpose entity, and recourse loans carry a personal guarantee. Every property still needs a lease or an appraiser-supported market rent.
Owner-occupied property, co-ops, mixed-use, and commercial property are ineligible in the pool. Manufactured and mobile homes are not reviewable on these programs.
Run the logic on a concrete shape: say an investor holds four rentals, and a hard money second against one of them is coming due. Moving all four into one note might clear the payoff and return cash on seasoned equity, with pooled coverage above 1.00. The price is that the four now move together at sale or refinance. That is a genuine toss-up for investors who plan to sell one asset within a few years.
Where Each Option Breaks
1. Payoff exceeds the ceiling. If the stack is above 75% of value (single) or pooled value, the options are a paydown, a bring-cash closing, or a staged payoff. Don’t assume a second appraisal changes the math.
2. Young loan. A hard money loan only a few months old may not meet the roughly 6-month cash-out seasoning rule, measured from title recording. On the portfolio loan, the cost-basis cap also applies inside the first twelve months.
3. Entity mismatch. The borrowing LLC must match the vesting on title. Fix vesting before applying, not during underwriting.
4. Lease gaps. A vacant or newly rehabbed rental needs a lease or an appraiser-supported market rent through a rent schedule. Without one, coverage can’t be tested.
5. Cash-out proceeds used for personal purposes. Loan purpose is what makes a loan business-purpose. The CFPB’s rule on exempt transactions turns on the purpose of the credit, and a Federal Reserve supervision manual treats credit to acquire or improve non-owner-occupied rental property as business purpose. Keep cash-out use documented and tied to the business.
Whichever route you take, read the prepayment terms on the long-term loan before you sign. Tax treatment varies; consult a qualified professional.
Which Route Fits Which Investor
| Your situation | Likely better fit |
|---|---|
| One large rental, strong rent, enough equity | Super jumbo DSCR cash-out |
| Several rentals, uneven coverage, deep total equity | Portfolio DSCR loan |
| Plan to sell individual properties soon | Single-property loan |
| Want one note across 5+ properties or units | Rental portfolio term loan |
| Equity thin on the hard money property | Neither until paydown or seasoning |
If the question is simply how to leave hard money, the hard money exit refinance program page lays out that path. For general background on how these loans work, see the complete DSCR loans guide.
Balanced Verdict
Neither option is better in the abstract. The super jumbo cash-out keeps the decision clean: one property, one appraisal, one coverage test, and no cross-default. The portfolio loan trades that independence for pooling, which helps when coverage or equity is uneven across your holdings. Choose by collateral and by how you plan to hold or sell, not by headline size.
Key Terms Defined
Super jumbo: industry shorthand for a loan size above a lender’s standard grid, not a regulated category.
Portfolio DSCR loan: one note secured by several rentals, also called a blanket or cross-collateralized loan.
Pooled coverage: combined rent divided by combined debt service across the whole portfolio.
Seasoning: the ownership period, measured from title recording, before cash-out is available.
Cash-out vs. payoff-only: cash-out returns money to the borrower beyond the payoff and costs; payoff-only does not.
Per-diem interest: the daily interest a lender adds to a payoff statement until it is paid.
Frequently Asked Questions
Can a DSCR cash-out refinance pay off a hard money second?
Yes, if the payoff fits under the leverage ceiling and the property is seasoned. On an investment property, the cash-out ceiling is 75% LTV, with about 6 months of seasoning. The new lender needs title to show the hard money lien paid at closing. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Does paying off a hard money loan count as cash-out?
It depends on the proceeds and on lender policy. When proceeds only cover the payoff and costs, many lenders treat it as a refinance with no cash back, which carries a higher leverage allowance than cash-out. That allowance is not a hard-money figure, and hard money itself is sized well below that level on loan-to-value, with cost-based tiers measured as a share of project cost rather than value. If any cash goes to the borrower, the 75% cash-out ceiling applies.
Does a portfolio DSCR loan test each property separately?
No. Coverage is measured on pooled rent against pooled debt service, so stronger properties can offset weaker ones. Every property still needs a lease or appraiser-supported market rent, and underwriting tests the pooled coverage, the leverage, and the terms.
What happens if I sell one property out of a portfolio loan?
Partial releases and substitutions follow the loan documents. The release price runs above the property’s allocated balance, and the remaining pool must still cover its debt service. Read those terms before choosing a pool.
What if my hard money payoff is more than the new loan allows?
You close the gap with a paydown, bring cash at closing, or stage the payoff. The 75% cash-out ceiling does not move because rent is strong. Equity and coverage both have to clear. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
About Lendmire
Lendmire — NMLS# 2371349 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 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. Scotsman Guide, One out of 20 mortgages are non-QM
2. CFPB Reg Z §1026.3, Exempt transactions
3. Federal Reserve supervision manual
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: DSCR Cash-Out Refinance vs. a 401(k) Loan to Fund a Syndication Deal · How a Southern Pines Rental Cash-Out Refinance Works With a DSCR Loan · Banks That Offer a Super Jumbo DSCR Cash-Out Refinance to Finish a BRRRR Deal
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.