The Quick Read: A DSCR cash-out refinance qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, so RSU vests and bonuses generally do not count as qualifying income, although vested shares in a brokerage account can help you document reserves. RSUs are restricted stock units, meaning company shares you receive as they vest. Your pay package shapes your cash planning, but the rental property drives the loan.
- Leverage: Cash-out on a standard rental tops out around 75% LTV across most of the network. Cash-out on short-term-rental collateral tops out at 70%.
- Seasoning: Most programs expect about 6 months of ownership, measured from title recording.
- Coverage: 1.00 is where many select programs start. A separate select-lender path goes below 1.00, with leverage and terms adjusted.
- Credit: A 620 floor exists in parts of the network, most programs want around 660, and 700+ opens the strongest tiers.
- Reserves: About 6 months of PITIA is common, with more required on larger loans. Vested shares can help here, and unvested ones generally do not.
Key Terms Defined
You will see these words in every term sheet, so here they are once, in plain English.
Cash-out refinance: A new loan that pays off the old one and hands you the difference in cash. The new balance is larger than the old balance.
Seasoning: The waiting period between buying a property and borrowing against its value. For cash-out, about 6 months of ownership is the common expectation.
DSCR (debt service coverage ratio): Monthly rent divided by the monthly housing payment. A result of 1.20x means the rent covers the payment with 20% to spare.
PITIA: Principal, interest, taxes, insurance, and any HOA dues. It is the full payment that rent gets measured against.
Reserves: Liquid savings the lender wants you to hold after closing, counted in months of PITIA.
RSU: A restricted stock unit, which is a promise of company shares. According to Carta, shares are delivered to you as the vesting conditions are met.
Vesting: The point where RSU shares become yours. Before that, they are a promise, not an asset.
DSCR Cash-Out Calculator
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Nov 5, 2026
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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.
What Actually Counts on a DSCR Cash-Out
Your salary, RSUs, and bonuses are not what the lender tests. The property is. The table shows where each item sits in the file.
| Item | Role in the DSCR test | Where it can still matter |
|---|---|---|
| Salary | Not used to qualify | Shows you can carry the loan |
| RSU vests | Not used to qualify | Vested shares become assets |
| Bonuses | Not used to qualify | Source of cash for reserves |
| Vested shares in a brokerage account | Not income | Documented as reserves |
| Unvested RSUs | Not income | Generally not counted as reserves |
| Rent | The core of the test | Sets how much you can borrow |
The pattern is simple. Pay-package items matter, if at all, as assets and as proof that you can handle the loan. They do not matter as income that gets divided into the payment.
That is a big shift for people used to a conventional mortgage, where the lender wants W-2s and a vesting history. On a DSCR file, the lender asks different questions. Does the rent cover the payment? Is there enough equity? Do you have the credit and the cash reserves?
How Underwriting Treats the File, Step by Step
Here is the sequence a DSCR cash-out follows across the lenders in the network.
Step 1: Purpose and occupancy. The loan must be for business purposes, and the property must be a rental you do not live in. Expect to sign an occupancy and business-purpose certification.
Step 2: The coverage test. The lender divides the property’s rent used for lender review by the full PITIA. A cash-out raises the loan balance, so the payment rises and coverage falls as the draw grows. Most programs build around a coverage of 1.00 or higher, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
Step 3: Leverage and seasoning. On a standard rental, cash-out tops out around 75% LTV, and about 6 months of ownership is the common expectation. Short-term-rental collateral is tighter. Cash-out on STR collateral is capped at 70%, and expect a 640+ score and about 12 months of hosting history. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Step 4: The borrower file. The lender pulls credit, collects ID, and reviews entity documents if the property sits in an LLC, subject to lender program eligibility. It also reviews statements for your reserves. Personal income documents are generally not part of the package.
Step 5: Reserves. Reserves vary by lender, leverage, loan size, and transaction type. About 6 months of PITIA is the common expectation on a cash-out. Loans above $1,500,000 typically step up to about 9 months.
Step 6: Payoff and proceeds. The old loan is paid off, and the remaining proceeds go to you. How much that is depends on rent, PITIA, reserves, and the leverage cap. It is never a guaranteed figure.
Loan sizes run 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. The 30-year fixed is the spine of the lineup. Extended terms (40-year) and interest-only periods are available through select lenders, and ARM structures exist for investors who want them.
For the full program picture, see Lendmire’s complete DSCR loans guide.
Why Your Pay Package Is Not the Test
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 CFPB’s commentary on exempt transactions treats credit to acquire, improve, or maintain a rental you do not occupy as business purpose. The exemption text itself is on eCFR.
That gives a lender permission to set aside W-2s, bonus letters, and vesting statements. It is permission, not a duty. A lender may still look at personal items by choice, which is one reason guidelines differ across the network.
A Worked Example: Which Limit Binds First?
Run the numbers on a modeled rental. These are assumptions, not market data. Say the property has been owned past the seasoning window and shows coverage near 1.45x on its current loan. You ask for a draw that takes the new loan to 75% LTV, the ceiling for cash-out on a standard rental. The new balance is much larger, so the payment rises. Coverage drops to roughly 1.10x. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
That file clears 1.00. The equity cap sets the limit, and the coverage test passes with a little room.
Now suppose the rent is thinner and the owner wants the same full draw. Coverage lands under 1.00, so the coverage test binds before the equity cap does. Three paths may be open, each subject to lender guidelines, credit approval, and property review:
- Take a smaller draw so coverage stays at a level the program accepts.
- Use a select-lender path that goes below 1.00 coverage, with leverage and terms adjusted.
- Use an interest-only period through a select lender, which changes the payment the rent is measured against.
| Situation | Limit that binds first | What to do |
|---|---|---|
| Lots of equity, modest rent | Coverage | Smaller draw, or a select-lender sub-1.00 path |
| Thin equity, strong rent | LTV cap | Wait for value or paydown |
| Strong on both | Reserves or credit tier | Document vested shares, check score tier |
| Owned under about 6 months | Seasoning | Wait, or ask about cost-basis sizing |
Because coverage can bind when rent is modest, it helps to gather a fresh lease or other rent documentation early.
One more point. Clearing 1.00 does not mean the property produces positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation. Treat the ratio as a qualification tool, not as a profit forecast.
Reserves: The One Place Your Stock Can Help
If your wealth sits in vested company shares, they can do real work on a DSCR file. Vested shares delivered to a brokerage account are liquid assets, and monthly statements can document them. Unvested RSUs generally do not count, because you do not own them.
Two cautions apply. The lender re-verifies assets before closing, so a drop in the share price can shrink the balance after you applied. Selling shares to cover tax withholding, or to fund a tax payment, can shrink it too. Build a cushion above the stated reserve requirement so a market swing does not leave you short. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Large deposits also need a paper trail. If you sell shares and move cash into a bank account, keep the brokerage confirmation and the transfer record together. Those statements answer the lender’s questions before they are asked.
Tax treatment varies; consult a qualified professional.
Timing a Cash-Out Around Vests and Bonuses
Your vest dates and bonus payouts do not change the property’s coverage ratio. They change your cash position, and that matters for reserves.
Three timing habits make the file cleaner:
- Apply after a vest has settled. Shares sitting in your brokerage account can be documented. Shares still in transit cannot.
- Avoid moving large sums mid-file. Transfers between accounts create new questions to answer.
- Plan for the payment, not just the qualification. The loan does not depend on your job after closing, but the payment is due either way. A missed bonus, a vesting cliff, or a layoff does not touch the coverage ratio. It can strain the cash you use to carry the loan.
That last point is where lumpy-income owners should think hardest. If your pay swings, a cash-out sized right at the cap leaves little room. A smaller draw with a reserve cushion is often the calmer structure.
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.
Where the General Rule Breaks
The “property first” rule has edges. These are the named ones.
Owner-occupied property. A DSCR loan is for a rental you do not live in. A primary residence is outside the program, so a cash-out on your own home needs a different product.
Proceeds that do not match the stated purpose. Business purpose describes the loan’s legal character. It is not permission to spend the money on anything. If you plan to use the cash for a personal purchase, talk through the loan’s purpose with your broker before applying. Documentation should match how you actually use the funds.
Property types that are not offered. DSCR programs in the network do not cover manufactured homes (single- and double-wide), log homes, or barndominiums. They fall outside these programs entirely.
Seasoning under about 6 months. Inside the window, lenders typically size the loan on cost basis rather than appraised value. A handful of programs treat this differently, so ask early.
Weak coverage. If the rent does not support the draw you want, the fix is a smaller draw or a different structure, not stronger personal income. Personal income does not raise the coverage ratio.
Short-term-rental collateral. STR cash-out is capped at 70% LTV, and expect a 640+ score, about 12 months of hosting history, and a 1.00 coverage floor 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. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
DSCR Cash-Out vs. the Other Ways to Use Your Equity and Stock
This is a genuine toss-up for many tech and finance owners. The right answer depends on what you need the money for.
Selling vested shares. Selling avoids new debt altogether. The tradeoff is giving up the shares and any future growth. A cash-out keeps the stock but adds a loan payment the rent must support.
Conventional cash-out. A conventional loan looks at your personal income, so RSU history and W-2s come into play. That route can suit owners with long, steady vesting records.
Larger loan balances. Standard DSCR programs go up to $3,000,000, and balances below the standard-program minimum route through select lenders. On bigger loans, reserves also rise to about 9 months of PITIA above $1,500,000.
DSCR is the better fit when the property pays for itself on paper and you prefer to keep your personal income out of the file. It is a poorer fit when the rent is thin, the property is not a true rental, or you would be stretching to carry the payment.
A larger down payment on a purchase lowers the payment and can lift coverage. It never erases leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests, enough equity and enough rental coverage.
What to Gather Before You Apply
- A current lease or rent evidence for the property
- A recent mortgage statement for the loan being paid off
- Your insurance declarations and tax bill for the property
- Entity documents, if the property is held in an LLC
- Brokerage and bank statements for reserves, including vested shares
- A government ID and permission for a credit pull
Notice what is missing: pay stubs, vesting schedules, and bonus letters. The file may still ask for them under some lender guidelines, but the core package is about the property.
Frequently Asked Questions
Do I need to show RSU or bonus income to get a DSCR cash-out?
Generally not. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The lender still reviews credit, reserves, title, and the appraisal. Some lenders may ask for personal items by choice, so guidelines differ across the network.
Can vested shares count toward my reserves?
Yes, in many cases. Vested shares held in a brokerage account are liquid assets that can be documented with statements. Reserves commonly run about 6 months of PITIA, with more required on larger loans. The lender re-verifies balances before closing, so a share-price drop can shrink what counts.
Do unvested RSUs help my file?
Generally no. Unvested RSUs are a promise of future shares, not assets you own today. Only vested, delivered shares can be documented as liquid reserves. Wait until after a vest settles if you want those shares to count.
How much cash can I pull out?
It depends on three limits. Cash-out on a standard rental tops out around 75% LTV, rent must cover the larger payment, and you must keep enough reserves. Short-term-rental collateral caps at 70% for cash-out. Coverage often binds before value does, so heavy draws on thin rent may call for a smaller amount or a select-lender path with adjusted terms.
Is it smarter to sell shares or do a cash-out refinance?
It depends on your goals. Selling avoids new debt but gives up future share growth. A cash-out keeps the stock but adds a payment the rental must support. If your pay is lumpy, a smaller draw with a reserve cushion usually gives you more room.
Next Step
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. As a mortgage broker, Lendmire arranges financing through select lenders in its wholesale network, covering 41 markets, including Washington, D.C. Programs change, and every file is underwritten individually by the lender. This is not a commitment to lend.
Owners paid in stock tend to ask whether their income matters. Here, the property’s rent answers the question, and your vested shares are best used as a cushion behind it.
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), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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References
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: Can a Portfolio DSCR Cash-Out Buy Out a Sibling on Inherited Rentals? · DSCR Cash-Out Requirements When You’re Unemployed and Have No Pay Stubs · How to Qualify and Apply for a DSCR Cash-Out Refinance Without Disrupting Rental Income
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.