Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
DSCR Cash-Out Calculator
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 8, 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 Oct 8, 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.
The Quick Read: Fannie Mae caps a cash-out refinance on a one-unit investment property at 75% of appraised value, per its Eligibility Matrix. The cap is lower for two-to-four unit rentals. So you must leave at least a quarter of the value in the property before payoffs and closing costs come out of your proceeds. That is the ceiling, and several other tests can bind first. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
- The 75% cap applies to a cash-out on a one-unit investment property. A primary residence gets more room.
- Fannie underwrites you personally: income, debt-to-income, credit, and reserves. It does not underwrite the rent.
- Two clocks apply: time on title and the age of the loan you are paying off.
- Your cash is the value times the cap, minus payoffs and costs. Gross equity is not your cash.
- DSCR loans are a separate, non-agency path. Fannie’s rules never govern them.
How Fannie Mae Sets the Max Cash Out on an Investment Property
Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
The maximum is a percentage of appraised value, and the percentage depends on how you use the property. On a cash-out, the matrix shows 80% for a one-unit primary residence and 75% for a two-to-four unit primary residence. A one-unit second home gets 75%, and so does a one-unit investment property.
Two-to-four unit investment properties are usually capped lower than the one-unit figure above. Confirm the exact percentage for that row on the current program matrix before you plan around it.
You will see sites that headline 80% for all cash-out. That is the primary-residence figure. On a rental, it does not apply.
Fannie also publishes pricing adjustments that vary by credit score and loan-to-value, with a separate row for investment property. A higher cap does not mean cheaper cash. Pricing is a second reason to take less than the maximum.
How Underwriting Treats the Request, Step by Step
Here is the sequence a lender follows on an agency cash-out.
1. Set the loan purpose. A cash-out pays off existing mortgages with a new first mortgage on the same property, or places a new loan on a free-and-clear property. A rate-and-term refinance (also called limited cash-out) returns almost nothing at closing and is governed by its own guideline topic. On an investment property, the matrix caps it at 75% too.
2. Check the two clocks. One is how long you have been on title. The other is how old the loan being paid off is. You must pass both. Fannie’s guideline wording on these periods has been updated before, so confirm the current text with your lender.
3. Size the loan. Take the appraised value, multiply by the cap, then subtract the payoffs and costs.
4. Run the borrower tests. This is the biggest break from DSCR lending. Fannie looks at your personal income, debt-to-income ratio, credit, and reserves. One reserve trigger on cash-out is a DTI above 45% on the automated underwriting findings, per the Eligibility Matrix.
5. Count your financed properties. Fannie’s multiple-financed-properties rule allows a maximum of 10 financed properties on a second-home or investment loan underwritten in its automated system. The count covers one-to-four unit properties where you are personally obligated on the mortgage, including your own home. Commercial property, buildings over four units, timeshares, vacant lots, and chattel manufactured homes are excluded.
6. Order the appraisal. The value that comes back sets your ceiling. Everything above it is arithmetic.
A Worked Example in Percentages
Run the numbers on a rental that appraises at 100 units of value. These are modeled assumptions, not market data.
- Cap on a one-unit investment cash-out: 75 units of new loan.
- Existing mortgage payoff: 55 units.
- Closing costs and prepaid items: roughly 2 to 3 units.
- Cash to you: about 17 to 18 units.
That is under a fifth of the property’s value, and the 25% you must leave in is the reason. Investor education sites such as Landlord Studio walk through the same logic. Use their method, not their numbers.
Now see which limit binds first. Say the same investor has a high balance and a DTI above 45%. The leverage cap says one thing, and the reserve trigger and DTI say another. The cap is the ceiling. Your income and debts decide how close you get to it.
Structures and Variations
Limited cash-out. If you only want a new loan on the existing balance plus costs, the leverage cap is the same on an investment property, but the cash-out pricing and some seasoning tests may not apply.
Delayed financing. This is a real exception for investors who bought with cash. It waives the wait on title. It does not shorten the wait to a lesser period. It means no waiting at all, as long as conditions are met.
An older trade association summary describes the original conditions. The purchase must be an arm’s-length deal with a settlement statement showing no mortgage financing. The source of funds must be documented. Title must be clean.
Two catches matter. First, the new loan is still priced and capped as a cash-out, so delayed financing does not avoid cash-out pricing. Second, the new loan generally cannot exceed your documented initial investment plus financed costs. It is sized on what you put in, not on today’s value. That summary is old, so use it for the concept and check the current guide for specifics.
Picture an investor who pays cash for a rental, then wants the money back for the next deal. Delayed financing is built for that case. A buyer who used hard money or borrowed against another property will find the exception harder to use, because borrowed purchase funds generally must be repaid at closing.
Where the General Rule Breaks
The rules above hold for most files. These edge cases are where they do not.
- Entity title. Fannie underwrites an individual. The delayed-financing rule lets the original purchase be made by a person, an eligible revocable or land trust, or an LLC or partnership you own 100%. After that, the new loan is generally in an individual’s name. An LLC already on title is a common reason investors look elsewhere.
- The property-count wall. The 10-property limit counts mortgages where you are personally obligated. Mortgages in an entity’s name generally fall outside it, subject to the lender’s guidelines, which is why larger portfolios often move to non-agency loans.
- Inheritance and divorce. Secondary summaries of the guide treat inherited property and divorce or separation awards as owned from the transfer date. Confirm that with your lender before you count on it.
- Ineligible cash-out. The guide lists transactions that do not qualify for cash-out treatment, such as certain payoffs tied to temporary buydowns, some PACE-lien situations, and installment land contracts. Read the current list before assuming your payoff counts.
- BRRRR payoffs. If a short-term loan paid for the rehab, the age of that loan may fail the loan-age clock. Plan the refinance around the clocks, not around the day the rehab finishes.
Agency Path vs. DSCR: What Changes
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. DSCR stands for debt service coverage ratio: the property’s rent divided by its monthly obligation (principal, interest, taxes, insurance, and any HOA dues).
Across the wholesale network Lendmire places files with, here is how the two paths compare. All program figures are typical ranges, subject to lender guidelines.
| Factor | Agency cash-out | DSCR cash-out (network) |
|---|---|---|
| Reviewed on | Your income and DTI | Rent covering the payment |
| Investment cash-out LTV | 75% on one unit | Tops out near 75% |
| Seasoning | Title and loan-age clocks | About 6 months from title recording |
| Entity title | Generally an individual | Often an LLC, per program terms |
| Property count | 10 financed properties | Generally no personal count cap |
Where Fannie’s cap sits at 75% on a one-unit investment cash-out, DSCR cash-out across most of the network also tops out around 75% LTV on a standard rental. A short-term rental cash-out is lower, at 70% LTV. So the cap alone rarely separates the two paths. Documentation, entity title, and portfolio size do. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
On the DSCR side, a file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Reserves commonly run about 6 months of PITIA (principal, interest, taxes, insurance, and HOA), stepping up to about 9 months above $1,500,000. Standard programs go up to $3,000,000, and smaller balances route through select lenders.
Coverage of 1.00 is where many select programs start. A separate select-lender path goes below 1.00, with leverage and terms adjusted. A stronger ratio generally opens better pricing and leverage.
One caution: clearing 1.00 is not the same as positive cash flow. DSCR compares rent to the payment only. Repairs, vacancy, management, utilities, and capex sit outside it.
Not every property fits. DSCR programs in this network do not offer manufactured homes (single- or double-wide), log homes, or barndominiums. A rate-and-term refinance can reach 85% LTV with no cash back, but a refinance that returns cash falls under the 75% cash-out line. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
For the program basics, see Lendmire’s complete DSCR loans guide. For the agency side in more depth, read Lendmire’s cash out investment property Fannie Mae.
Which Path Fits You?
The agency route suits you if you have clean, documentable income, a low financed-property count, and a rental in your own name. It is the lower-cost, income-qualified path, and investor commentary generally treats DSCR as costing more. That is opinion, not a published number.
Three things push investors toward DSCR: a count near the 10-property ceiling, DTI crowded by existing mortgages, or an LLC already on title (subject to lender program eligibility). Honestly, this is a toss-up for many mid-size investors. The cheaper agency loan wins on cost, while the DSCR loan wins when the agency tests would stall the deal.
In practice, DSCR files in this range often turn on appraisal value and rent. A property with strong rent but a thin equity cushion hits the 75% cap before it hits the coverage test. A property with plenty of equity but soft rent often fails coverage first. The strongest files clear both: enough equity and enough rental coverage. A larger equity cushion lowers the loan and can lift the ratio, but it never erases credit floors, reserve rules, or property eligibility.
Size cash-out after payoffs and costs, not off gross equity. Some investors take less than the maximum to keep pricing or reserves in check. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
Cash-out refinance: A new first mortgage that pays off the old one and gives you the leftover equity in cash.
LTV (loan-to-value): The loan amount divided by the appraised value, shown as a percentage.
Seasoning: The waiting period a lender wants before you can refinance, such as time on title.
Delayed financing: An agency exception that lets you refinance a cash purchase without waiting out the title clock.
Reserves: Liquid funds, often counted in months of the full monthly payment, that you hold after closing.
DTI (debt-to-income): Your monthly debts divided by your monthly income, used in agency underwriting.
Frequently Asked Questions
Can I get cash out on a rental under Fannie Mae rules?
Yes, on a one-unit investment property up to 75% of appraised value. Two-to-four unit rentals get a lower cap. You will be underwritten personally, so your income, debts, credit, and reserves matter as much as the equity.
How long do I have to wait before refinancing a rental?
Two clocks apply: time on title and the age of the loan being paid off. Both must be met. If you bought with cash, the delayed financing exception waives the wait, though the loan is still priced and capped as a cash-out. Confirm the current wording with your lender.
Can an LLC take a Fannie Mae cash-out loan?
Generally not. Fannie underwrites an individual and closes in an individual’s name. Delayed financing allows an LLC you own entirely to have made the original cash purchase, but the new loan is personal. DSCR programs often allow the entity to stay on title, subject to program terms.
What if I own more than 10 financed properties?
The agency limit is 10 financed properties on an investment loan underwritten in its automated system. The count covers one-to-four unit properties where you are personally obligated. Investors past that limit commonly look at DSCR loans, which are underwritten on the property’s rent.
Do Fannie Mae rules apply to my DSCR loan?
No. DSCR loans are non-agency products governed by each lender’s own guidelines. Across the network, cash-out generally tops out near 75% LTV on standard rentals and 70% on short-term rentals, with about 6 months of seasoning.
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. Lendmire is a broker arranging DSCR financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Approval is subject to lender guidelines and not a commitment to lend.
Cash-out math rewards the investor who sizes the loan from the appraisal down, not from the equity up.
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.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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References
1. Fannie Mae Eligibility Matrix
2. Fannie Mae Selling Guide B2-2-03, multiple financed properties
3. Landlord Studio, cash-out refinance guide
4. American Apartment Owners Association, delayed financing summary
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: DSCR Cash-Out Refinance Requirements After Recalculation · Can You Use DSCR Delayed Financing on a 2-4 Unit Property? · How Much a DSCR Delayed Financing Proceeds Cap Limits Your Return
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.