Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
The Quick Read: Usually, yes. A 660 sits at or just above the minimum on most hard money programs and on most long-term DSCR cash-out programs, so the score alone rarely blocks the file. The score is not the whole file. Property value, equity, seasoning, reserves and the exit plan carry the decision, and all of it is subject to lender guidelines.
- On a hard money cash-out refinance, leverage typically tops out at 65% of value. The loan is interest-only for 6-18 months with no prepayment penalty, and the minimum score is 620, with added conditions below 660.
- On a long-term DSCR cash-out on a standard rental, leverage tops out around 75% LTV across most of the network. A 660 usually gets you in, at the entry tier.
- A 700+ score opens the strongest leverage tiers. First-time investors generally need about 700 on the DSCR side.
- Seasoning (time on title) and reserves can matter more than the score. Reserves commonly run about 6 months of PITIA.
- Nothing here is a commitment to lend. Terms vary by lender, property, and experience.
Which Product Are You Asking About?
“Hard money cash-out refinance” describes two different deals, and the answer at 660 differs slightly for each.
Deal A: a new hard money loan that pulls cash out. This is a short-term bridge loan secured by a property you already own. It typically lends up to 65% of value on cash-out and rate/term refinances. Underwriting is asset-based: the property, the plan, and the exit.
Deal B: refinancing out of a hard money loan into a long-term DSCR cash-out loan. This is the more common investor path. A bridge loan funded the purchase and rehab, and now the investor wants permanent financing and some cash back. Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path.
Both are business-purpose loans on non-owner-occupied property. Hard money here covers 1-4 unit residential, with ground-up construction going to 10 units. It does not cover commercial, land, or owner-occupied homes.
Does Credit Matter if Hard Money Is Asset-Based?
Yes. Hard money underwriting leans on the property, but a score still sets the floor and the conditions. Some marketing says credit is irrelevant. That is not how files behave.
On the hard money side, 620 is the minimum score. Below 660, extra conditions apply. At 660 or above, those extra conditions fall away. So 660 is a threshold score: low enough to be mid-range, high enough to skip the added hurdles. Reserves still apply either way.
On the DSCR side, most programs across the wholesale network want around 660. A 620 floor exists in parts of the network, and 700+ unlocks the strongest leverage. The score controls three things: whether you are eligible, how much leverage you get, and what conditions attach to the file.
What Does a 660 Score Mean in Practice?
A 660 is approvable, and it sits in the entry tier. It is a step below the top tier, not a rejection.
| Score band | Hard money cash-out | Long-term DSCR cash-out |
|---|---|---|
| 620-659 | Eligible, extra conditions | Floor exists in parts of the network |
| 660-699 | Standard conditions | Approvable, entry tier |
| 700+ | Standard conditions | Strongest leverage tiers |
Plan around the entry tier. Expect the credit tier to shape leverage and terms, not just yes or no. A higher score does not raise the cap past the program ceiling. It only gets you to the cap. That is why moving from about 660 to 700+ can matter more than any rent adjustment, so check your score before applying, not after.
Why Is Cash-Out Judged More Strictly?
Cash leaves the deal. On a purchase or a payoff-only refinance, the lender’s exposure stays tied to the property. On a cash-out, the borrower takes equity off the table, so the lender wants stronger credit, more documented value, and enough reserves to carry the loan.
That is why the same 660 can feel comfortable on a rate/term file and tighter on a cash-out. Leverage caps are lower on cash-out than on purchase. On a standard rental, cash-out typically tops out around 75% LTV, and on a short-term-rental property the cash-out ceiling is typically 70%. Hard money cash-out sits lower, at up to 65% of value.
What Else Gets Reviewed Besides the Score?
The score is one line on a longer checklist. These items decide most files.
Seasoning. The lender measures time on title from the recorded deed date. About 6 months is the common expectation on the DSCR side. This is a lender risk policy, not a statute, and it varies by program. Inside the first six months, most lenders size cash-out on cost plus documented rehab rather than a fresh appraisal. Refinancing the note is often possible right away. Extra cash typically waits for seasoning to pass. A hard-money-funded purchase also generally does not fit delayed financing, because a lien secured the purchase.
Value. An appraisal sets value, and the appraiser and underwriter verify rent. The property should be in rentable condition, and a signed lease or market-rent support is part of the file.
Coverage. On a long-term DSCR loan, the DSCR is rent divided by the full payment: principal, interest, taxes, insurance, and any dues. Rent must cover the larger new payment, so coverage can cap the loan below the LTV ceiling. 1.00 is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Clearing 1.00 is not the same as positive cash flow, because repairs, vacancy, management, utilities and capex sit outside the calculation.
Reserves. Reserves vary by lender, leverage, loan size, and transaction type. They commonly run about 6 months of PITIA. Conservative rate/term files at modest leverage under $1,500,000 can see reserves waived, and larger loans typically step up to about 9 months.
Credit report details. Recent late payments, open collections, liens, and mortgage payment history all get read. Expect to write explanation letters for anything recent.
Entity and property type. Loans are typically made to an LLC or to an individual, subject to lender program eligibility. Manufactured homes, log homes, and barndominiums are not offered on DSCR programs.
The Payoff Waterfall: Where Your Cash Actually Comes From
New loan proceeds pay off the hard money balance first, including accrued interest and any exit fees. Closing costs come next. What remains is the cash-out.
That order is why the exit math is tight. A DSCR cash-out capped near 75% of value leaves little room when the bridge loan was sized against cost. A slightly low appraisal can turn a cash-out into cash to close. Run the sequence in this order: value, leverage cap, payoff, costs, remainder.
A rate/term refinance that only clears the bridge loan returns no meaningful cash. That is a legitimate exit when the goal is simply to replace a maturing note.
Which 660 Files Work and Which Stall?
| Borrower profile | Typical outcome | What helps |
|---|---|---|
| Experienced investor, seasoned property, rent covers payment | Approvable at the entry tier | Clean lease, appraisal support |
| First-time investor, no track record | Often “it depends” | Score near 700, lower leverage |
| Inside six months of purchase | Cash-out sized on cost plus rehab | Wait for seasoning, document rehab |
| Rent barely covers payment | Loan may size below the cap | Lower leverage, stronger coverage |
| Recent lates or collections on report | Added conditions likely | Explanation letters, cleanup |
The first-time investor row is where a yes most often turns into an it-depends. First-time investors generally need about 700 for top leverage on DSCR cash-out, and some programs in the wider market exclude first-timers from cash-out entirely. On the hard money side, first-time investors qualify at the lower leverage tiers.
Short-Term Rentals at 660
Short-term rental collateral has its own rules. Cash-out is typically capped near 70% LTV, and lenders expect about 12 months of hosting history and a score of 640 or better. 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. For the full breakdown, see Lendmire’s piece Short-Term Rental Cash-Out Refinance Requirements With a 660 Credit Score.
Hard Money Cash-Out vs. Long-Term DSCR Cash-Out
| Factor | Hard money cash-out | DSCR cash-out (standard rental) |
|---|---|---|
| Leverage | Up to 65% of value | Around 75% LTV |
| Term | 6-18 months, interest-only | 30-year fixed spine |
| Underwriting | Asset-based | Rent coverage plus credit |
| Best fit | Bridge, short horizon | Stabilized, held property |
| Prepayment penalty | None on current program | Varies by program |
Hard money fits when the property is not yet stabilized or you need a short bridge. DSCR fits when the property is rented and you plan to hold. Extended terms and interest-only periods are available through select lenders in the network. For a deeper look at the exit itself, Lendmire’s guide How to Refinance Out of Hard Money When Your Credit Score Blocks DSCR covers the case where the score is the obstacle.
Business-Purpose Loans: A Short Note
DSCR and hard money 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. Federal rules treat credit to acquire, improve or maintain non-owner-occupied rental property as business purpose, but that treatment does not apply if the owner expects to occupy the property for more than 14 days in the coming year, per the CFPB’s Regulation Z rule text. Business purpose also does not mean free of compliance duties, as this Lexology analysis of business-purpose lending explains.
What to Do Before You Apply
1. Pull your own score first. Know whether you sit at 660 or 699. A move to 700 changes the tier.
2. Clean the report. Resolve collections and liens where you can, and prepare explanation letters for recent lates.
3. Gather the file. Purchase closing statement, rehab invoices, deed date, payoff statement, signed lease or rent support, and two consecutive account statements.
4. Check seasoning. Count from the recorded deed date. If you are inside six months, expect cost-based sizing.
5. Document reserves. Plan on roughly 6 months of PITIA, adjusted by lender, leverage, and loan size.
6. Start early. Begin the refinance process 60-90 days before the hard money balloon date, not after.
7. Limit hard pulls. A hard credit pull can temporarily lower a score, so avoid scattering applications.
A complete DSCR loans guide walks through the long-term side in more detail.
If You Are Not Approved
A decline at 660 usually points to something other than the score. Common causes are a low appraisal, rent that does not cover the new payment, short seasoning, or thin reserves. The usual fixes:
- Lower the requested leverage so coverage clears.
- Wait out seasoning and re-run the appraisal.
- Refinance the bridge note without cash-out and take cash later.
- Raise the score toward 700 and reapply for a higher tier.
- Consider a sub-1.00 coverage path, available through select lenders in the network, with leverage and terms adjusted.
Key Terms Defined
Seasoning: the time between when you took title and when a lender will allow cash-out.
PITIA: principal, interest, taxes, insurance, and association dues, the full monthly payment used in the DSCR test.
DSCR: debt service coverage ratio, monthly rent divided by PITIA.
Asset-based underwriting: a review driven mainly by the property, the plan, and the exit.
Payoff waterfall: the order in which new loan proceeds pay off the old loan, then costs, then you.
Frequently Asked Questions
Is 660 high enough for a hard money cash-out refinance?
Yes, on most files. The program minimum is 620, with added conditions below 660, so a 660 clears that bar. Leverage typically tops out at 65% of value, and reserves and the exit plan still apply.
Will a 660 score limit how much cash I can take out?
It can. On DSCR cash-out, 660 generally lands in the entry tier, while 700+ unlocks the strongest leverage. The cap around 75% LTV on a standard rental does not rise with a better score. A better score only gets you to the cap.
Can I refinance out of hard money right after buying?
Often yes for the note itself, but extra cash usually waits. Lenders typically want about 6 months of seasoning before sizing cash-out on appraised value. Before that, loans tend to be sized on documented cost plus rehab.
Does applying hurt my credit?
A hard credit pull can temporarily lower a score. Keep applications focused rather than spreading them across many lenders.
Do I need to document personal income?
Hard money is asset-based, and a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, reserves, and property review still apply.
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.
About Lendmire
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that helps arrange investor financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR eligibility is generally reviewed by the lender around the property’s rental income rather than personal income documentation, subject to lender guidelines — which works for self-employed investors, LLC operators, and portfolios above four financed properties. 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. Lexology, Beware of Business Purpose
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best DSCR Cash-Out Refinance Program to Pay Off a Hard Money Second · Best Hard Money Cash-Out Refinance Program When the Hard Money Note Is Coming Due · Best Hard Money Cash-Out Refinance Program When the Property Is Titled in an LLC
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.