Lendmire Research

Yes — a cash-out refinance on your primary residence is one of the most common ways investors fund a rental down payment.

No — the cash you pull out in a cash-out refinance is loan proceeds, not income, so the IRS does not tax it.

Yes, banks and non-bank lenders will refinance a rental property and let an investor pull cash out — but a non-owner-occupied cash-out refinance gets

For most rental-property owners financing through a DSCR loan, the practical answer is around six months of ownership before a cash-out refinance can close.

Big banks and large retail lenders do offer fixed-rate cash-out refinances on rental properties, but most cap leverage lower than they would on a primary

Fannie Mae does allow cash-out refinancing on a non-owner-occupied investment property, but its Selling Guide requires at least six months on title before

No — the cash you pull out in a cash-out refinance is not taxable income.

Yes — a property titled in an LLC can be cash-out refinanced, and in most cases the LLC never has to give up title to do it.

How A Cash Out Refinance Works: what investors need to know about DSCR financing — eligibility, coverage, and loan structure, from Lendmire.

There is no single “Fannie Mae calculator” for an investment property cash-out refinance because Fannie Mae’s rules only govern agency-eligible

A cash-out refinance replaces an existing mortgage with a new, larger loan secured by the same property, and the borrower pockets the difference in cash

A cash-out refinance on an existing rental lets an investor replace the current loan with a larger one and pocket the difference — most non-QM lenders cap

Yes — a cash-out refinance requires a fresh appraisal in almost every case, and for investment property financed through DSCR and other non-QM programs