Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The Quick Read: It depends mostly on loan size rather than the 700 score, because cash to you equals the new loan minus the old payoff and closing costs, and the new loan is capped by a cash-out leverage limit on standard rentals that steps down from 75% to 60% as the balance grows and disappears entirely above $3,000,000, subject to underwriting.
- On a standard-rental cash-out, the ceiling is 75% on loans to $1,000,000, 70% to $1,500,000, and 60% to $3,000,000. Nothing is available above $3,000,000.
- A 700 score clears the cutoff that blocks cash-out above $1,500,000 for 680-and-below borrowers. The top cell in the $1,500,000 to $3,000,000 bands needs 720.
- Proceeds are unlimited at or below 60% LTV. Above 60% they are capped at $1,500,000.
- Rent must cover the new, larger payment, so coverage can shrink the loan below the leverage cap.
- Two appraisals are expected above $2,000,000, and cash-out proceeds never count toward your six months of reserves. Leverage, reserves, and pricing vary by lender and program.
Key Terms Defined
Super jumbo: A loan big enough that no agency rulebook applies, so each lender sets its own size tier. In Lendmire’s wholesale network, large-balance programs typically start around $2,000,000 and run to $10,000,000.
DSCR (debt service coverage ratio): The monthly rent divided by the full monthly obligation on the property. A coverage ratio of 1.00 means rent exactly covers the payment. The concept comes from net operating income over debt service, and retail DSCR loans use a rent-over-payment version.
LTV (loan-to-value): The new loan as a percentage of the appraised value.
Cash-out proceeds: What is left for you after the new loan pays off the old one and covers costs.
Seasoning: The waiting period between buying a property and refinancing it for cash.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
What Is the Formula for Cash to the Borrower?
Cash to you is the new loan, minus the payoff of the existing loan, minus closing costs, any prepayment charge on the old loan, and any escrows. The new loan is the lower of two numbers: the appraised value times the cash-out LTV for that loan band, and the loan the rent can support.
That second limit surprises people. A high-balance refinance raises the payment, and the rent is tested against the new payment, not the old one. Two properties with the same value and the same payoff can produce very different checks if their rents differ.
Lendmire arranges these loans as a broker through select lenders in a wholesale network covering 41 markets, including Washington, D.C. The numbers below are ceilings across that network. Every file is underwritten individually, and nothing here is a commitment to lend.
Where Does a 700 Score Land on the Size Ladder?
At 700, the score is rarely what limits you. Loan size sets the leverage band, and the band sets the ceiling. The score decides which cell inside a band you reach.
Here is the ladder for loan amounts, at coverage of 1.00 or higher, through select programs and subject to underwriting. The bands are loan amounts, never purchase prices.
| Loan band | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| $150K–$1M | 80% | 80% | 75% |
| $1M–$1.5M | 75% | 75% | 70% |
| $1.5M–$2M | 75% | 75% | 60% |
| $2M–$3M | 75% | 75% | 60% |
| $3M–$4M | 65% | 65% | — |
| $4M–$6M | 60% on review | 60% on review | — |
| $6M–$10M | 60% on review | 60% on review | — |
Credit works differently in each band. The top cash-out cell on loans to $1,000,000 needs 660 or better. At $1,000,000 to $1,500,000, the top cell needs 700. At $1,500,000 to $3,000,000, the top cell needs 720. A 700 score may therefore sit in a lower cell inside the $1,500,000 to $3,000,000 bands, and the exact cell depends on the program and the file.
Two credit rules matter most at 700. Borrowers at 680 or below get no cash-out above a $1,500,000 loan, and a 700 score clears that line. The program floor is 660 on loans to $3,000,000 and 700 above it, but cash-out does not exist above $3,000,000 anyway.
Above $4,000,000, every request is reviewed case by case before submission, and only purchase or rate-and-term loans apply.
Which Limit Binds First?
Three limits can cap your check, and the lowest one wins.
The value cap. Appraised value times the cash-out LTV for the band. This is the one most investors calculate.
The rent cap. The largest loan the rent supports at the required coverage. Coverage of 1.00 earns full leverage. A coverage ratio from 0.75 to 0.99 is a real path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting. A 660 file with strong rent can out-borrow a 700 file with thin rent.
The proceeds cap. Cash-out is unlimited at or below 60% LTV. Above 60% LTV, proceeds are capped at $1,500,000. In the $1,500,000 to $3,000,000 bands the cash-out ceiling is already 60%, so this cap mostly matters on smaller loans where leverage runs higher. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Interest-only helps the rent cap. Programs in the network offer a 120-month interest-only period on 30- and 40-year terms, to 75% LTV, qualified on interest, taxes and insurance, with coverage of 0.75 or better. The lower early payment lifts coverage, though the principal does not go away. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
What Does the Net Check Look Like?
Three scenarios show how it works. All figures are modeled assumptions expressed as shares of appraised value, not market data.
Scenario one: a mid-band cash-out. Say a rental appraises well inside the $2M–$3M loan band and the existing loan is a bit over a third of value.
- Appraised value: 100%.
- New loan at 60% LTV on a cash-out: 60%.
- Existing payoff: 35%.
- Gross cash before costs, escrows and any prepayment charge: 25%.
Closing costs and prepayment charges then come off that 25%. Reserves must come from other assets, because cash-out never counts toward them.
Scenario two: a small appraisal miss. Run the same file with the appraisal 5% below expectations.
- Appraised value: 95%.
- New loan at 60% LTV: 57%.
- Existing payoff: 35%.
- Gross cash: 22%.
A 5% value miss cut gross cash from 25% to 22% of the original value, a relative drop of 12%, because the loan shrinks with the value while the payoff stays fixed. At 60% leverage on a large loan, the margin is thin. All of this stays subject to underwriting.
Scenario three: the band edge. Consider a property whose appraisal sits right where a 60% loan reaches the $3,000,000 top of the $2M–$3M band, which implies a value near $5,000,000. A slightly higher appraisal pushes the loan above $3,000,000, and cash-out disappears for that structure. A slightly lower one keeps you in the band. Investors near an edge should plan the loan size before they order the appraisal.
Does the Rent Pass at the Bigger Payment?
A large refinance can fail the rent test even when the equity is plentiful. Say a property supports a coverage ratio around 1.2x on a moderate loan, but the maximum 60% loan would test near 0.9x. The network offers three paths in that case:
- Take a smaller loan until coverage clears 1.00.
- Use a program that reviews coverage between 0.75 and 0.99 at reduced leverage, which stays subject to underwriting.
- Switch to interest-only to lift the coverage test.
Each path trims the cash. The loan is only as large as the rent supports, so the leverage table shows a ceiling, not a promise.
How Can You Resize the Loan for More Cash?
Small structural changes often matter more than score.
| Move | Effect on cash |
|---|---|
| Keep the loan at or under $3M | Keeps cash-out available |
| Raise credit to 720 | May reach the band’s top cell |
| Use interest-only | May lift coverage |
| Pay down the old loan first | Shrinks the payoff, may raise net |
| Switch to rate-and-term | Reaches 75% from $1M to $3M, no cash back |
The cliff at $3,000,000 deserves the most attention. A loan just under it is a very different product from one just over it. A rate-and-term refinance (a refinance with no cash back) can sit at higher leverage than cash-out in the same band, so it suits investors who need to restructure debt rather than extract equity.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What Do Reserves and Appraisals Do to Net Cash?
Programs in the network expect six months of reserves on the subject property, or twelve for first-time investors. Reserves are measured on principal, interest, taxes and insurance, or on interest, taxes and insurance for interest-only loans. Cash-out proceeds never satisfy them, so reserves come from other assets. Up to 20 financed properties can sit in the file, with no extra reserves required for the others. Exact terms depend on lender and investor guidelines, credit profile, reserves, and property review.
Above $2,000,000 in loan amount, expect two appraisals. They add cost and one more way for value to land low. Because the loan shrinks with value, budget for a value that comes in a little under your expectation.
Use of proceeds is a lender question too. Tax treatment varies; consult a qualified professional.
What If Cash-Out Is Not Available?
Above $3,000,000, cash-out does not exist in this network, so the choices narrow:
- A payoff-only refinance, which replaces the old loan without cash back.
- A smaller loan that lands under the cutoff.
- Staging the debt across more than one property or loan.
Cash buyers have another route. A delayed financing exception lets someone who bought with cash borrow against the property soon after purchase, and it skips the usual seasoning wait. Proceeds are sized on documented cost rather than appraised value, and the other tests still apply.
Hard-money or bridge payoffs deserve attention. If any cash comes back to you, treat it as a cash-out for seasoning. A straight payoff that returns nothing is not.
Do Special Property Types Change the Math?
Yes, and mostly downward.
Short-term rentals. On short-term-rental collateral, the cash-out ceiling is 70%, versus 75% on standard rentals up to $1,000,000. Qualifying income is twelve months of operating history on a refinance, at 80% of gross. Loan amounts stop at $2,000,000, coverage must be 1.00 or higher, and the investor must have owned income property for twelve of the last thirty-six months. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Condos. Non-warrantable condos cap at 75% and $1,500,000. Condotels cap at 65% on a refinance and $1,500,000, with $250,000 cash-in-hand required.
Rural and acreage. Above $3,000,000, no rural property is accepted, and no more than ten acres on a non-rural one.
Is DSCR Cash-Out Different From a Full-Documentation Jumbo?
Yes, in what the lender examines. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A full-documentation jumbo leans on personal income and tax returns. Non-QM loans can reach well past agency limits, and Scotsman Guide reports that a non-QM jumbo can reach $3 million or more, which is part of why this market exists for investors with large, entity-held portfolios.
Appraisal, entity documents, reserves and credit still apply. Entity vesting is welcome, subject to program terms, though layered entities are not.
For the broader picture, Lendmire’s complete DSCR loans guide walks through how these programs fit together.
Where Do Investors Misread the Numbers?
Several misreadings recur, and each changes the check.
- 75% means 75% of value in cash. It is the total loan cap on a cash-out, so your cash is that amount minus the payoff and costs.
- The ceiling follows you up the size ladder. It does not, because loan size, not property value, sets the cap.
- 700 unlocks maximum leverage at every size. The top cells in the larger bands may need 720.
- Clearing seasoning clears coverage. They are separate tests.
- Equity guarantees cash-out. Nothing is available above $3,000,000.
Frequently Asked Questions
Can I take cash out on a loan above $3,000,000 with a 700 score?
No. In this network, cash-out does not exist above $3,000,000, whatever your score. A 700 score is the credit floor for purchase and rate-and-term loans in that range, with 0x30x24 housing history, 48-month event seasoning, and citizenship or permanent residency. Above $4,000,000, every request is reviewed case by case, subject to underwriting.
Does 700 get me the same leverage as 720 on a cash-out?
Not always. A 700 score clears the 680-and-below cutoff, but the top cash-out cells in the $1,500,000 to $3,000,000 bands need 720. Depending on the program, a 700 file may sit in a lower cell inside the same band. Confirm the cell before you plan around it.
Is there a cap on proceeds besides LTV?
Yes. Proceeds are unlimited at or below 60% LTV, and capped at $1,500,000 above 60%. Because the $1,500,000 to $3,000,000 bands already top out at 60% cash-out, the cap matters most on smaller loans with higher leverage. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Do cash-out proceeds count toward my reserves?
No. Reserves are six months on the subject property, or twelve for first-time investors, and they must come from other assets. The cash you take out cannot satisfy them.
What if the rent does not cover the new payment?
The loan shrinks to what the rent supports. Select programs review coverage from 0.75 to 0.99 at reduced leverage through select lenders, with LTV and terms adjusting, subject to underwriting. Interest-only can also lift coverage on files that qualify.
Next Step
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Call 828-256-2183 or request a quote.
Because cash-out disappears above $3,000,000, size the loan before you chase the score.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
For current guidelines and terms, see Lendmire’s super jumbo DSCR loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (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. Bankrate: Delayed Financing
2. Scotsman Guide: One out of 20 mortgages are non-QM
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can Out-of-State Investors Get Approved for a Super Jumbo DSCR Cash-Out Refinance?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.