The Quick Read: Agency loan-to-value limits apply only to loans sold to Fannie Mae or Freddie Mac, so they do not set the leverage on a DSCR cash-out refinance, which is a non-agency, business-purpose loan whose limits come from the lender program. On most files in Lendmire’s wholesale network, cash-out tops out around 75% LTV, subject to lender guidelines.
- The agency matrix caps a one-unit investment cash-out at 75% and a 2–4 unit at 70%, and it is useful only as a contrast.
- DSCR cash-out generally runs to about 75% LTV on standard rentals, with about 6 months of seasoning.
- Agency files turn on personal income and DTI. DSCR files qualify primarily on property-level rental income covering the payment, subject to lender guidelines.
- Equity left in the property is only one gate. Coverage, credit, reserves, and property type all have to clear too.
What Are Agency LTV Limits?
Agency limits are the maximum loan-to-value ratios that Fannie Mae and Freddie Mac allow on loans they buy. Fannie Mae’s Eligibility Matrix sets a 75% maximum LTV for a one-unit investment-property cash-out refinance. Fortune’s investor explainer reports the same 75% for a single unit and 70% for 2–4 units. Both sit below the primary-residence caps.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Nov 5, 2026
Prefilled with starting assumptions — enter your property’s value, balance, taxes, and insurance for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Nov 5, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Property value, balance, taxes, and insurance are editable estimates. Maximum loan-to-value varies by lender, program, property type, and seasoning. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Conventional investment cash-outs also carry loan-level pricing adjustments on top of base pricing. FHA and VA financing are not available for investment-property cash-out.
Those are the agency numbers. They bind a loan only if it is sold to an agency. A DSCR loan is not.
Key Terms Defined
LTV (loan-to-value): The loan amount divided by the property’s value, expressed as a percentage.
Cash-out refinance: A new loan larger than the payoff of the old one, with the difference returned to the borrower.
Rate-and-term refinance: A refinance that pays off the existing loan and returns no cash at closing.
Seasoning: The length of time you have owned the property before a lender will size a cash-out on its current value.
PITIA: Principal, interest, taxes, insurance, and any association dues, the full monthly housing obligation.
DSCR: The property’s monthly rent divided by PITIA.
Non-agency loan: A loan that is not sold to Fannie Mae or Freddie Mac, so its rules come from the lender program.
Why Don’t Agency Caps Govern a DSCR Cash-Out?
Agency caps are conditions of selling a loan to an agency. A DSCR cash-out is a non-agency loan made for business purposes, so the lender or investor program sets leverage, seasoning, and qualification. 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 two paths also test different things. The agency path underwrites the borrower’s personal income and debt-to-income ratio, with property rent playing a secondary role. A DSCR file asks whether the rent covers the full housing payment. Credit still matters.
How Does Underwriting Treat a DSCR Cash-Out, Step by Step?
The sequence is mechanical. Each step can cap the cash you walk away with.
1. Value basis. The lender starts with value. Maximum loan equals value times the program’s cash-out LTV cap. Landlord Studio notes that LTV depends on property type, credit, and equity.
2. Appraisal. The appraisal sets the value. For rent, the appraiser’s rent schedule is the usual document. The 1007 form covers single-family rent schedules, and the 1025 covers small residential income properties.
3. Seasoning. Seasoning decides the value basis. Across most of Lendmire’s network, about 6 months of ownership, measured from title recording, is the common expectation before a cash-out is sized on the new appraised value. Before that point, sizing generally falls back toward cost basis. This is where BRRRR-style investors get caught: the rehab is done, but the clock has not run.
4. Rent coverage. The lender divides rent used for lender review by PITIA. The standard minimum DSCR on a refinance is 1.00, though select lenders in the network offer coverage below that with leverage and terms adjusted. Stronger ratios open better pricing and leverage. Where a second lien stays in place, coverage is tested after both payments.
5. Reserves. Reserves vary by lender, leverage, loan size, and transaction type. They commonly run around 6 months of PITIA, stepping up to about 9 months above $1,500,000.
6. Net proceeds. The new loan minus the payoff, closing costs, any prepayment charge, and other liens is the cash out. Higher leverage also tends to worsen pricing, so the maximum draw is not always the best draw.
What LTV Applies on a DSCR Cash-Out?
Here is the contrast in one place.
| Factor | Agency cash-out | DSCR cash-out (network) |
|---|---|---|
| Who sets the cap | Fannie Mae / Freddie Mac | Lender program |
| One-unit rental | 75% LTV | Around 75% LTV |
| 2–4 units | 70% LTV | Set by program and property type |
| Short-term rental | Not a separate category | 70% cash-out ceiling, STR collateral only |
| What is tested | Personal income and DTI | Rent vs. PITIA, credit, reserves |
On standard rentals, cash-out tops out around 75% LTV across most of the network. On short-term-rental collateral, cash-out is held to 70%. A DSCR program may price 2–4 unit properties differently from single units. The cap there depends on the program, so confirm it before relying on a number. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Market surveys report that most DSCR lenders cap cash-out at 75%, with some going higher, as Landlord Studio describes. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
A rate-and-term refinance returns no cash at closing, and it is the only refinance that can sit above the cash-out ceiling. A refinance that returns cash is cash-out and takes the 75% line.
What Does the Math Look Like?
Run the arithmetic in percentages. Say an investor owns a single-family rental appraised at a value of 100%. The lender sizes the new loan at no more than 75% of that value. From the new loan, subtract the existing payoff, closing costs, and any prepayment charge. What remains is the cash out. If the payoff already consumes most of the 75%, the draw is small, and no rule makes it larger.
Now say the appraisal comes in low. A lower value shrinks the maximum loan in direct proportion, because the percentage applies to appraised value, not to what the investor hoped for. An appraisal reconsideration, supported by recent comparable sales, is the usual response. Lowering the requested loan amount is the other.
On coverage, a property whose rent covers the full PITIA at around 1.2x clears the 1.00 starting point that select programs use. A property below 1.00 is a different path. Coverage below 1.00 is available through select lenders in the network, with leverage and terms adjusted. The 75% cap does not move to accommodate weak rent.
What Else Limits the Cash?
The leverage ceiling is not the only gate. A large amount of equity does not override the other tests.
- Credit. A 620 floor exists in parts of the network. Most programs want around 660, and 700 and above opens the strongest leverage tiers.
- Reserves. Cash-out proceeds are sometimes counted toward reserves, depending on the lender, so ask before assuming either way.
- Loan size. Standard programs run up to $3,000,000. Above $2,500,000 the network generally holds to 30-year fixed structures.
- Coverage. Clearing 1.00 is not the same as positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capex sit outside the calculation.
- Pricing. More leverage costs more. The maximum draw may not be the right draw once pricing is considered.
The strongest files clear two tests: enough equity and enough rental coverage. A larger down payment on a purchase lowers the payment and can lift the ratio, but it never erases leverage caps, credit floors, reserve rules, or property eligibility.
Why Do You See Different Numbers Online?
Four causes explain most of the confusion.
First, agency numbers and DSCR numbers get mixed on the same page. A table showing 75% for conventional and a table showing 75% for DSCR can look identical and mean different things.
Second, lender overlays. A lender can set limits stricter than any published cap.
Third, occupancy and property type. A single unit, a 2–4 unit, a short-term rental, and a live-in multi-unit each fall in different categories.
Fourth, stale pages. Limits change, and old forum threads keep circulating.
Where Does the General Rule Break?
Short-term rentals. Cash-out on a short-term rental collateral is held to 70% in the network. Expect a 640+ score and about 12 months of hosting history. Coverage floors apply at 1.00 on refinances. 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.
Delayed financing. A cash buyer may access a refinance sooner under the delayed-financing exception, which Landlord Studio describes. Terms differ by program, so treat it as a question for the specific lender.
Low coverage. Sub-1.00 coverage is available through select lenders in the network, with leverage and terms adjusted. No-ratio structures are available only through select lenders, generally for borrowers who already own a primary residence.
Ineligible property types. Manufactured homes (single- and double-wide), log homes, and barndominiums are not offered in the network’s DSCR programs.
Entity ownership. Rentals held in an LLC can be eligible, subject to lender program eligibility, and guarantor credit is still pulled.
What If Your LTV Is Too High?
When the numbers do not reach, there are practical options.
- Wait for the seasoning period to pass, then re-appraise.
- Request a smaller draw so the loan sits under the cap.
- Pay down the existing balance before applying.
- Ask for appraisal reconsideration with recent in-neighborhood sales.
- Consider a rate-and-term refinance if the goal is restructuring and not cash.
- Compare structures. Extended terms, such as 40-year, and interest-only periods are available through select lenders in the network, and ARM structures exist for investors who want them. Each changes the coverage ratio.
The complete DSCR loans guide lays out the program basics.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire, a broker arranging DSCR financing through select lenders across 41 markets including Washington, D.C., can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. Programs change, and every file is underwritten individually. This is not a commitment to lend.
Frequently Asked Questions
Do Fannie Mae limits apply to a DSCR cash-out refinance?
No. The agency matrix governs only loans sold to Fannie Mae or Freddie Mac. A DSCR cash-out is a non-agency loan, and the lender program sets the leverage. Across most of the network, cash-out on a standard rental tops out around 75% LTV, subject to lender guidelines.
What is the agency cap on a rental cash-out?
The matrix shows 75% for a one-unit investment property, and Fortune reports 70% for 2–4 units. Confirm the exact row against the live matrix before relying on it, since limits change.
Does a larger down payment change the cash-out LTV cap?
A larger down payment on a purchase lowers the payment and can lift the coverage ratio. It does not raise the cash-out cap, and it does not waive credit, reserve, or property-eligibility rules.
How long do I have to own the property first?
About 6 months of ownership, measured from title recording, is the common expectation in the network. Before that, sizing generally leans toward cost basis, not the new appraised value.
Does a DSCR loan skip the credit check?
No. Borrowers are almost always personal guarantors, so credit is pulled. A 620 floor exists in parts of the network, most programs want around 660, and 700 and above opens the strongest leverage tiers.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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. Fannie Mae Eligibility Matrix
2. Fortune investor explainer on investment-property cash-out refinancing
3. Landlord Studio cash-out refinance guide
This article is part of Lendmire’s investment property cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Where to Get a Portfolio DSCR Cash-Out Refinance in a Low Cash Flow Rental Market · Can You Get a DSCR Cash-Out Refinance to Pull Cash Out of a Paid-Down Rental? · How Much Can You Borrow With a DSCR Cash-Out Refinance After the Rehab on a BRRRR Rental?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.