The Quick Read: It depends on the loan size, because the check equals the smallest of three limits, a leverage cap that steps down as the balance grows, rent coverage on the larger new payment, and a proceeds cap, less your payoff and closing costs. Personal tax returns are not part of the test. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
- Cash-out leverage on investment property steps down from 75% on loans up to $1,000,000, to 70% on loans from $1,000,000 to $1,500,000, to 60% on loans from $1,500,000 to $3,000,000.
- No cash-out is available on a loan above $3,000,000, and balances above $4,000,000 are reviewed case by case on purchase or rate-and-term only.
- Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above 60%.
- Reserves of 6 months of payments on the subject property must come from other funds.
- Every figure here is a ceiling through select wholesale programs, subject to underwriting. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
How Is the Cash Figure Calculated?
The figure comes from one chain of steps, and the tightest limit in the chain sets your cash. Lendmire is a broker that arranges these loans through a wholesale network of investor lenders.
1. The requested loan amount picks the band. The loan amount, not the property value, sets the maximum cash-out leverage, the credit score needed for that leverage, and the number of appraisals.
2. The appraisal sets value. Value times the band’s leverage gives the first ceiling. Above $2,000,000 in loan amount, two appraisals are required.
3. The appraiser’s market-rent opinion sets coverage. Rent divided by the full new monthly obligation (principal, interest, taxes, insurance and any HOA dues) gives the coverage ratio. A larger draw means a larger payment, so coverage falls as cash comes out.
4. The proceeds cap applies. Cash is unlimited at or below 60% LTV and capped at $1,500,000 above 60%.
5. Payoff and costs come out. Net cash is the new loan, less the old payoff, less closing costs and any prepayment charge on the old loan.
6. Reserves stay separate. Programs in the network typically want 6 months of payment reserves on the subject property, and 12 months for first-time investors. Cash-out proceeds do not satisfy that requirement.
Coverage of 1.00 earns full leverage. Coverage from 0.75 to 0.99 is a real path through select programs, up to $2,000,000 in loan amount, but LTV and terms adjust, subject to underwriting. For one-unit rentals, the appraiser’s rent figure usually comes from the comparable rent schedule (Form 1007), which Fannie Mae’s Selling Guide names as the single-family comparable rent schedule. Two-to-four-unit properties use the operating income form (Form 1025). Both names refer only to appraisal forms. DSCR loans are not agency products and do not follow agency rules.
What Does the Leverage Ladder Look Like?
Leverage falls as the loan grows, and cash-out stops entirely above $3,000,000. The table shows the best available ceiling in each loan band for an investment property at coverage of 1.00 or higher, through select wholesale programs, subject to underwriting.
| 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 | — |
The bands are loan amounts, never purchase prices. Multiply price by leverage first, then read the band for the resulting loan.
Credit works band by band. The program floor is 660 on loans to $3,000,000 and 700 above that. The top cash-out cell in each band needs the score listed here. The 75% cell on loans to $1,000,000 needs 660 or better, the 70% cell needs 700 or better, and the 60% cells need 720 or better. A lower score drops you to a lower-leverage cell in the same band. Borrowers with credit of 680 or below get no cash-out above a $1,500,000 loan.
The proceeds cap matters only in the upper-leverage bands. Above 60% LTV, which happens only on the 75% and 70% cash-out cells, cash is capped at $1,500,000. In the 60% bands, proceeds are unlimited at or below 60% LTV, so leverage is the binding limit rather than a dollar cap. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Interest-only is a separate lever. The 120-month interest-only period runs on 30- and 40-year terms, tops out at 75% on an interest-only loan, and is reviewed on interest, taxes and insurance only. That review basis can leave more coverage room for a larger draw, and it still needs coverage of 0.75 or better.
Worked Examples: When Rent Binds and When Size Binds
Percentages tell the story better than dollars here. The cases assume a standard long-term rental in the $1,500,000 to $3,000,000 band, where cash-out tops out at 60% LTV. The figures are modeled assumptions, not quotes. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Rent binds. Say an owner’s payoff sits at 45% of appraised value, so leverage would allow a draw of 15 points of value before costs. Suppose current coverage is about 1.15x. A draw that raises the payment by roughly 15% pulls coverage to about 1.00x. If the appraiser’s rent opinion comes in lower than the owner expected, the draw shrinks even though the leverage ceiling has room. In a case like this, the rent schedule deserves review before anyone plans a number around the leverage cap.
Leverage binds. Now say the payoff sits at 58% of value and rent is strong. Only two points of value remain under the 60% cap, so the check is small before costs, however well the property covers its payment.
No cash-out at all. Say the payoff sits at 62% of value. The cash-out ceiling in that band is 60%, so no cash comes out. A rate-and-term refinance at up to 75% on an investment property in that band can still change the loan structure without returning cash. The owner can revisit a cash-out later, after paying the balance down or after value grows.
Size binds. If the property is valuable enough that the new loan would land above $3,000,000, the cash-out option disappears. The loan then has to stay at or below $3,000,000 to qualify as a cash-out at all. That ceiling holds even when the equity is plentiful, which is why very large equity positions often need a staged plan.
What Does Without Personal Income Still Require?
Personal income is not tested, but the file is still fully underwritten. 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. The Federal Register’s ability-to-repay rulemaking treats business-purpose loans, including investment-purpose ones, as outside those consumer-mortgage rules.
| Skipped | Still reviewed |
|---|---|
| Personal tax returns | Property rent versus the new payment |
| Employment verification | Credit history and score |
| Personal debt-to-income ratio | Reserves on the subject property |
| Appraisal, title and current liabilities |
Entity vesting is welcome on most programs, subject to lender program requirements, though layered entities are not. Above $3,000,000, programs add a super jumbo overlay of 0x30x24 housing history, 48-month event seasoning, citizens and permanent residents only, and no rural property. Cash-out is off the table there anyway.
Document the use of proceeds. Purpose, not property type, is what makes a loan business-purpose, so a clear paper trail for how the cash is used protects the file. Tax treatment varies; consult a qualified professional.
Key Terms Defined
Super jumbo: A loan large enough that lenders apply their own tighter limits, with no single regulator defining the category.
Debt service coverage ratio (DSCR): Monthly rent divided by the full monthly obligation on the property, where 1.00 means rent equals the payment.
PITIA: Principal, interest, taxes, insurance and any association dues, which together make up the monthly obligation.
Cash-out proceeds: The money left from the new loan after the old payoff and closing costs.
Seasoning: How long you have owned the property before a lender sizes the loan on current appraised value instead of cost.
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.
Edge Cases That Change the Number
Recent purchases. Seasoning is lender policy, not law. On a recent purchase, many programs size the loan on cost, meaning the purchase price plus documented rehab, rather than appraised value. A bridge-loan exit can refinance the payoff first and take cash later. Delayed financing for all-cash buyers waives only the waiting period. Coverage, reserves, the appraisal and leverage all still apply.
Paying off a second lien. If the old second mortgage was not used to buy the property, paying it off makes the new loan a cash-out. That is true even when no money returns to the borrower.
Short-term rentals. Short-term-rental collateral qualifies only up to $2,000,000 in loan amount, with coverage of 1.00 or higher. Income is twelve months of operating history on a refinance, counted at 80% of gross, 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. Municipal permission must be documented for the specific property. The standard rent schedule was designed for long-term leases, so STR income is built from operating history rather than that form.
Condotels. A condotel refinance tops out at 65% LTV and $1,500,000, with $250,000 cash-in-hand required. Non-warrantable condos run to 75% and $1,500,000. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
No-ratio files. A no-ratio path exists through a handful of lenders in the network, up to $2,000,000 and subject to underwriting, with a seven-year clean housing history and 0x30x24. LTV and terms adjust, and it is not available for short-term-rental income.
What If the Loan Would Land Above the Cash-Out Ceiling?
There are three practical routes. The first is a rate-and-term refinance now, with a cash-out later after the balance falls or value rises. The second is keeping the new loan at or below $3,000,000 by pulling less. The third is a sale or a cross-collateral line, where lender appetite and total pool equity set the limit. A full-documentation jumbo route can make sense for a borrower whose tax returns tell a strong story and who wants a different cash-out profile. Bank-statement programs are another route, and the right fit depends on the borrower, the property and current lender guidelines. For the full picture of how these loans work, see the complete DSCR loans guide.
Common Misconceptions
- Unlimited cash-out is standard. Proceeds are unlimited only at or below 60% LTV in this network, and there is no cash-out above a $3,000,000 loan.
- The maximum loan equals cash in pocket. Payoff, closing costs and any prepayment charge come out first.
- No personal income review means no underwriting. Coverage, credit, reserves, appraisal and title are all still reviewed.
- The rent schedule works for any rental. It is built for long-term leases, so short-term income needs its own documentation. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Frequently Asked Questions
Is there a single maximum cash-out amount on a super jumbo DSCR loan?
No. The cash is the smallest of the leverage ceiling, the coverage limit and the proceeds cap, minus payoff and costs. The maximum loan shrinks as a percentage of value as the balance climbs, and cash-out disappears above $3,000,000. All of this is subject to underwriting. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Does a bigger loan always mean more cash?
No. A request in the $1,500,000 to $2,000,000 band is held to 60% LTV, while a request up to $1,000,000 can reach 75% on a cash-out. A smaller, higher-leverage request can release more cash from the same property than a larger request in a higher band, depending on the payoff. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Can cash-out proceeds cover the reserve requirement?
No. Reserves of about 6 months on the subject property, or 12 for first-time investors, must come from other funds. Proceeds from the refinance itself cannot satisfy them. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
What credit score does a large cash-out need?
The program floor is 660 on loans to $3,000,000. The top cash-out cell needs more as the loan grows, with 700 or better for the 70% cell and 720 or better for the 60% cells. A score of 680 or below gets no cash-out above a $1,500,000 loan.
What happens if coverage falls below 1.00 after the draw?
Select programs in the network review coverage from 0.75 to 0.99 up to $2,000,000 in loan amount. LTV and terms adjust, subject to underwriting. An interest-only structure can raise coverage by qualifying on interest, taxes and insurance only.
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. Business-purpose investor financing is arranged in 41 markets, including Washington, D.C., and every program is subject to underwriting and is not a commitment to lend.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges DSCR financing for real estate investors in 41 markets — 40 states plus Washington, D.C. Because deals are underwritten primarily on property cash flow rather than personal income documentation, the structure suits self-employed buyers and entity-owned portfolios. Lendmire places loans through wholesale investor lenders; it is not a direct lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 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
2. Federal Register, Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act
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: How Much Cash Comes Out of a Super Jumbo DSCR Cash-Out Refinance for Foreign Nationals? · Super Jumbo DSCR Cash-Out Refinance vs Portfolio DSCR Loan Before Selling
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.