Cash-Out Refinance for Investment Properties
Unlock your property's equity to fund new investments, make improvements, or consolidate debt. Up to 75% LTV available.
What is a Cash-Out Refinance?
A cash-out refinance allows real estate investors to replace their existing mortgage with a new, larger loan and receive the difference in cash. This strategy enables you to tap into your property's accumulated equity without selling the asset, providing capital for portfolio expansion, property improvements, or other investment opportunities.
With Zeus Commercial Capital's DSCR-based cash-out refinancing, you can access your equity quickly without the hassle of traditional income verification.
Benefits of Cash-Out Refinancing
Unlike a home equity line of credit (HELOC) or second mortgage, a cash-out refinance replaces your existing first mortgage entirely. This can be advantageous when current interest rates are favorable or when you want to consolidate multiple liens into a single payment. For investment properties, Zeus Commercial Capital offers DSCR-based cash-out refinancing that qualifies you based on the property's rental income rather than your personal income.
Cash-Out Refinance Example
Current Property Value: $400,000
Existing Mortgage Balance: $200,000
Maximum LTV (75%): $300,000
Cash Out Available: $100,000
Use our partner's free cash-out calculator to estimate your available equity.
Why Cash-Out Refinance Your Investment Property?
Fund New Acquisitions
Use equity from performing properties to fund down payments on new investment properties. Leverage your existing portfolio to accelerate growth.
Property Improvements
Finance renovations, upgrades, or capital improvements that increase property value and rental income. Turn equity into forced appreciation.
Lower Interest Rates
If rates have dropped since your original loan, refinancing can reduce your monthly payment while still accessing cash. Improve cash flow and extract equity simultaneously.
Debt Consolidation
Consolidate high-interest debt, pay off hard money loans, or eliminate multiple liens. Simplify your finances with a single, lower-rate payment.
Tax-Advantaged Strategy
Cash-out proceeds are not taxable income. Consult with your tax advisor about deducting mortgage interest on investment properties.
Portfolio Optimization
Rebalance your portfolio by extracting equity from low-yield properties to invest in higher-performing markets or asset classes.
Cash-Out vs. Rate-and-Term Refinance
| Feature | Cash-Out Refinance | Rate-and-Term Refinance |
|---|---|---|
| Primary Goal | Access equity in cash | Lower rate or change term |
| Loan Amount | Increases (new loan > old loan) | Same or slightly higher (closing costs) |
| Maximum LTV | Up to 75% (investment property) | Up to 80% (investment property) |
| Interest Rate | Typically 0.125% - 0.25% higher | Lowest available rates |
| Best For | Investors needing capital for growth | Reducing monthly payments |
Cash-Out Refinance Requirements
Property Requirements
- 1-4 unit residential investment property
- Property must be stabilized (rented or rent-ready)
- Minimum DSCR of 1.0 (no-ratio options available)
- Appraisal required to determine current value
- Seasoning: 6-12 months since purchase or last refi
Borrower Requirements
- Credit score: 640+ (higher scores = better rates)
- Reserves: 6-12 months PITIA (principal, interest, taxes, insurance, association)
- No income verification required (DSCR-based)
- LLC or personal name ownership accepted
- No limit on number of financed properties
The Cash-Out Refinance Process
Submit Application
Complete our online application with property and borrower details. We'll review your scenario and provide initial feedback within 24 hours.
Document Collection
Provide lease agreements, bank statements showing reserves, and property insurance. No tax returns or income documentation required for DSCR loans.
Appraisal & Underwriting
We order the appraisal and submit your file to underwriting. Typical turnaround is 7-10 days for conditional approval.
Clear Conditions & Close
Address any underwriting conditions, schedule closing, and receive your cash-out funds. Total timeline: 21-30 days from application to closing.
Unlock Your Property's Equity Today
Get a free cash-out refinance quote in minutes. Our investment property specialists will help you maximize your equity extraction.