Straight answers on rental cash-out refinancing.

It is a refinance of a non-owner-occupied rental property in which a new, larger loan replaces the existing one and you receive the difference in cash. The new loan is qualified primarily on the property’s rent compared with its monthly payment — the debt service coverage ratio — rather than on your personal income.

No. DSCR Cash-Out Refinance is a brand of Loan Daddy LLC, a licensed mortgage broker. We arrange and shop financing from wholesale lenders. The wholesale lender underwrites, approves and funds the loan.

No. We only arrange business-purpose loans for non-owner-occupied investment property. If you or your family will live in or personally use the property, we cannot help with that request.

Wholesale DSCR programs commonly cover single-family rentals, two- to four-unit properties, townhomes and condos (including some non-warrantable condos) and short-term rentals. Some programs also cover five-plus unit multifamily, mixed-use and portfolios of several properties. Eligibility depends on the specific program.

The loan is limited by the lower of two ceilings: the program’s maximum cash-out loan-to-value applied to the appraised value, and the largest loan the rent can support at the program’s minimum DSCR. Your current payoff and closing costs come out of that amount; the rest is your cash out.

Seasoning is the length of time you have owned the property (and sometimes how long the current loan has been in place). Within a program’s seasoning window, many wholesale lenders base a cash-out on the lower of the purchase price or appraised value. After it, they generally use the appraised value.

Not always. Some wholesale programs offer delayed financing, which lets you place a loan on a property shortly after an all-cash purchase. The loan is typically limited by your documented purchase cost and the program’s loan-to-value limits.

Business purposes — for example, a down payment on another investment property, renovations to rental property, or paying off short-term investment debt. Proceeds from the business-purpose loans we arrange cannot be used for personal, family or household purposes.

Most DSCR programs do not use personal income documents to qualify the loan, because the property’s rent is the qualifying income. Credit, assets, reserves, the appraisal and property documents are still reviewed.

It depends on the wholesale program. Some want the rent to exceed the payment by a margin, some accept a ratio around 1.00, and some offer options below 1.00 with more equity required. Use our calculator to see your ratio and the loan sizes that keep coverage at common targets.

Yes. Many wholesale DSCR programs lend directly to LLCs and other entities for investment property, usually with personal guarantees from the majority members. You will need your formation documents, operating agreement, EIN and proof of good standing.

Often, yes. Programs built for short-term rentals may use trailing booking statements or a short-term market rent analysis. Others use long-term market rent. Local permitting and HOA rules can affect whether short-term income is counted.

No. Sending us your scenario does not trigger a credit review. A credit review only happens later, after you decide to move forward and authorize it.

Pricing on business-purpose loans depends on the property, leverage, credit, coverage, prepayment structure and current market conditions, and it changes frequently. Any published figure would be misleading for most scenarios. We shop your actual scenario across wholesale lenders and show you real options.

Loan Daddy LLC is a mortgage broker (NMLS #2827624). Its licenses: AZ CMB Licensed · #CMB-2016143 and See our licensing page for details. Availability varies by property state and program, so tell us where the property is and we will confirm.

As a broker, we are compensated for arranging the loan. Compensation is disclosed to you in writing before you commit, along with all other loan costs.