The Quick Read: The best program for your situation depends on three numbers: the payoff on your existing debt, the appraised value, and the rent the property supports. Hard money is a short-term, interest-only, asset-based loan, so it suits a property that is not yet stable or not rent-ready. A long-term DSCR loan suits a property that already rents.
- Hard money cash-out refinances run up to 65% of value, with terms of 6 to 18 months, interest-only, and no prepayment penalty.
- Standard rental cash-out through the DSCR network tops out around 75% LTV, with about 6 months of seasoning as the common expectation.
- Foreign-national files are reviewed individually. Leverage, reserves and seasoning often sit tighter than on a domestic file.
- Most hard money cash-outs are a bridge. Plan the long-term exit before you sign.
What Does “Hard Money Cash-Out Refinance” Actually Mean?
The phrase covers two different transactions, and mixing them up causes most of the confusion on these files.
The first is refinancing out of a hard money or bridge loan. You bought, rehabbed and leased the property, and a long-term loan now pays off the short-term lender at the new appraised value. This is the standard BRRRR exit.
The second is a new hard money loan on a property you already own, taken to pull cash out. It is a short-term loan sized to the asset, with no rent test. It works as a bridge to the next deal, not as a place to hold a rental for years.
This article covers both. The rest of the article names which one applies at each step.
How Is the Loan Sized?
Hard money lenders size a cash-out refinance on value, not on rent. Across the wholesale network, cash-out and rate/term refinances on hard money run up to 65% of value. The figure varies by lender, property, and experience. This is not a commitment to lend.
Two things come off the top before you see cash. The first is the payoff on the existing loan. The second is the closing cost on the new one. What is left is your proceeds.
Say the existing balance already sits near 65% of the appraised value. A new hard money loan at that cap would barely retire the old one, and there would be little cash out. If the balance sits above 65%, you bring cash to the table. That is why a low appraisal is the most common way these files shrink.
Loan amounts reach $5,000,000, and larger by exception. Smaller balances vary by lender.
How Does Underwriting Treat a Foreign National File?
Underwriting stays asset-based: the property, the plan, and the exit. The borrower file still matters, and a foreign national file carries extra documents. Lenders in the network typically ask for the following:
1. A valid passport, plus visa or visa-waiver status.
2. Foreign credit references in place of a US credit score, where the lender accepts them.
3. Bank statements showing the source of funds and reserves.
4. Entity documents if the loan closes in an LLC, subject to lender program eligibility.
5. Certified English translations of anything not in English.
6. A payoff statement from the existing lender.
The hard money sheet lists a 620 minimum score, with added conditions below 660. A borrower with no US score is reviewed against what that lender will accept, and acceptance varies. Do not assume a foreign credit letter carries over. Ask the broker which lenders in the network accept your documentation before you order an appraisal.
Hard money is also for non-owner-occupied 1-4 unit residential property. Commercial, industrial, land and owner-occupied properties are not on the sheet. The hard money program is not offered in Louisiana, Minnesota, North Dakota or South Dakota, or in Baltimore, Chicago or Detroit.
Hard Money Cash-Out or DSCR Cash-Out?
If the property already rents, a DSCR cash-out is usually the stronger long-term product. If it does not rent yet, hard money is the tool that fits.
| Factor | Hard money cash-out | DSCR cash-out |
|---|---|---|
| Reviewed on | Property value and exit plan | Rent covering the payment |
| Term | 6-18 months, interest-only | 30-year fixed spine |
| Leverage cap | Up to 65% of value | Around 75% LTV, standard rentals |
| Property state | Can be unfinished | Rentable or rented |
| Best for | Bridge, rehab, short hold | Long-term hold |
| Main limit | Maturity deadline | Coverage and reserves |
The DSCR column describes the network’s ranges for standard rentals. Foreign-national files often sit below them, and the exact figure depends on the lender. DSCR compares rent to PITIA (principal, interest, taxes, insurance and association dues). Select programs start at 1.00. A separate select-lender path goes below 1.00, with leverage and terms adjusted. Clearing 1.00 is not the same as positive cash flow, because repairs, vacancy, management and capex sit outside the ratio.
Extended terms and interest-only periods are available on DSCR loans through select lenders. Property types such as manufactured homes, log homes and barndominiums are not offered. Short-term rental collateral is a separate path: cash-out there is capped at 70%, not the 75% that applies to standard rentals. Lendmire’s piece Best Short-Term Rental Cash-Out Refinance Program for a Foreign National Investor covers that case in full.
Where Does the General Rule Break?
Most hard money files follow the pattern above. These edge cases do not.
Payoff exceeds the allowed loan. The rehab ran over, or the appraisal came in light. The borrower covers the gap in cash at closing. Some investors take less cash out to avoid this.
The property is not rentable. A DSCR loan needs rent or a market-rent opinion. A unit with open permits or no kitchen belongs in a hard money or bridge loan first.
The maturity date arrives before the exit is ready. Terms run 6 to 18 months. There are no multi-year options on the current program, so a hold longer than 18 months needs long-term financing.
Sanctions screening. Lenders screen borrowers against OFAC’s sanctions programs and country information. Nationality or residence tied to a sanctioned jurisdiction can end a file. There is no single banned-country list to check yourself, so ask the broker early.
Entity closings and federal reporting. A federal rule on residential real estate transfers to entities covered some non-financed deals, and law-firm summaries say private-lender-only financing can count as non-financed. According to Procopio’s summary of the FinCEN real estate rule, a federal court vacated the rule after it took effect. An appeal could change that, so confirm its status with your closing agent before you close in an LLC.
Seasoning. DSCR cash-out commonly expects about 6 months since purchase or last financing. Foreign-national programs often ask for more. Hard money has its own rules, which vary by lender. The settlement statement from your purchase is the document that proves ownership dates.
Delayed financing. If you bought the property for cash, some programs let you borrow against it sooner. Whether a foreign national file qualifies depends on the lender.
What Does a Clean File Look Like?
A clean file has four pieces lined up before the appraisal is ordered:
1. A payoff statement that matches the loan on the title commitment.
2. Entity documents (articles, operating agreement, EIN letter) that match the name on title.
3. Bank statements that show where the reserves came from, with translations attached.
4. A written exit plan, either a sale or a long-term refinance.
Appraisals are where files stall. If the value comes in light, a reconsideration request backed by recent nearby sales and a documented condition adjustment can recover part of the gap. Ask for it early, not after the payoff has expired.
Reserves matter on both products. They vary by lender, leverage, loan size and transaction type. On DSCR files they commonly run around 6 months of PITIA. Loans above roughly $1,500,000 typically step up to about 9 months. Foreign-national programs often ask for more, and they want to see where the money sits. Reserves held abroad generally need documentation to count.
Which Path Fits Which Investor?
Run the decision in this order:
- Property rents today and you plan to hold it: go to DSCR cash-out. Coverage and reserves decide the loan.
- Property is vacant, mid-rehab or in transition: hard money cash-out, with a plan to refinance out once it leases.
- Your payoff is above the 65% hard money cap: neither product works without extra cash. Reduce the ask or wait.
- You need a larger loan than most lenders write: the hard money sheet reaches $5,000,000, and DSCR runs up to $3,000,000 on standard programs (smaller balances available through select lenders). Above $2,500,000 the network generally holds to 30-year fixed structures.
What Is the Exit?
Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. Start the DSCR file well before the maturity date, because seasoning, appraisal and reserve documentation take their own time. The complete DSCR loans guide walks through the long-term side.
A larger down payment, or a lower payoff, lifts the coverage ratio. It does not erase credit floors, reserve rules or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
Key Terms Defined
Cash-out refinance: A new loan that pays off the old one and returns the difference to the borrower as cash.
Hard money loan: A short-term, interest-only loan sized to the property’s value and the borrower’s plan, not to rent.
DSCR: The property’s monthly rent divided by its monthly PITIA, which measures whether rent covers the payment.
Seasoning: The time you have owned the property or held the current loan before a cash-out is allowed.
Foreign national: A borrower who is not a US citizen or permanent resident and often has no US credit history.
Payoff statement: A letter from the current lender giving the exact balance needed to retire the loan.
Frequently Asked Questions
Can a foreign national take cash out of a US rental with hard money?
Often yes, subject to the lender’s guidelines, the property type and the borrower’s documentation. Hard money underwriting stays asset-based, so value and the exit plan carry most of the weight. The hard money program tops out at 65% of value on a cash-out refinance, and that is before the existing loan is paid off.
Do I need a US credit score?
Not always. A foreign national without a US score is reviewed under whatever alternative evidence a lender accepts, such as foreign credit references. Acceptance varies, so ask which lenders in the network take your documents first.
How much cash will I actually receive?
Take the cap on appraised value, then subtract the payoff and closing costs. If your existing balance is near or above the cap, there may be little or nothing left. In that case the borrower brings cash to close. The worst surprise is a low appraisal after the payoff is already locked.
Should I use hard money or a DSCR loan?
Use hard money when the property is not rent-ready or you need a short bridge. Use a DSCR loan when the property already rents and you plan to hold it. DSCR cash-out on a standard rental tops out around 75% LTV across most of the network, and foreign-national files can sit lower. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Can I close through an LLC?
Often yes, subject to lender program eligibility. Entity documents must match the title and the payoff. The federal reporting rule on entity transfers has been through court action, so confirm its current status with your closing agent.
The Next Step
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals. Lendmire is a mortgage broker that places DSCR investor and hard money loans across 41 markets, including Washington, D.C. Call 828-256-2183 or request a quote. If the property is already rented and you are a foreign national, a DSCR cash-out refinance is the better starting point. Foreign-national cash-out files tend to turn on one number, the payoff against appraised value, long before rent or credit enter the discussion.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide 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. OFAC – Sanctions Programs and Country Information
2. Procopio – FinCEN Residential Real Estate Rule
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Short-Term Rental Cash-Out Refinance Requirements When Your Mortgage Is Almost Paid Off · Top Hard Money Cash-Out Refinance Providers to Tap Equity From a Rental Property · How a Lender Counts Reserves on a BRRRR Cash-Out Refinance
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.