A DSCR cash-out refinance lets you pull equity out of a California rental property using the property’s rental income — not your personal income — to qualify. No W-2s, no tax returns, no DTI calculation. The rent covers the loan; you get the cash.
How DSCR Cash-Out Refi Works
You refinance your existing investment property loan, borrow more than the current balance, and take the difference as cash. The new loan is underwritten entirely on the property’s rental income vs. the new PITIA.
Example: Your Fremont duplex is worth $1,100,000. You owe $550,000. A 70% LTV cash-out refi gives you a new loan of $770,000 — you pocket $220,000 cash (minus closing costs). Combined rents: $6,200/mo. New PITIA: $5,100/mo. DSCR = 1.22 ✅
DSCR Cash-Out Refi Guidelines — California 2026
| Factor | Standard Guideline |
|---|---|
| Max LTV (SFR, 1-4 units) | 70–75% |
| Min DSCR | 1.0 (standard) / 0.75 (sub-1.0 program) |
| Min credit score | 680 |
| Seasoning | 6–12 months ownership (varies by lender) |
| Max loan amount | $3M+ on jumbo DSCR programs |
| Cash-out use | Unrestricted — buy next property, renovate, payoff debt |
Best Uses for DSCR Cash-Out Proceeds
- Down payment on next rental — the classic investor move; refi one property to fund the next
- Value-add renovations — improve the property, raise rents, improve DSCR on the next refi
- Pay off high-rate debt — replace credit card or hard money debt with lower-rate mortgage cash
- Business liquidity — self-employed investors often use real estate equity as working capital
DSCR Cash-Out vs. HELOC — Which Is Better?
| Feature | DSCR Cash-Out Refi | HELOC on Investment Property |
|---|---|---|
| Rate | Fixed (predictable) | Variable (rises with prime) |
| Max LTV | 70–75% | 65–70% |
| Availability | Widely available | Limited on investment property |
| Best for | Large lump sum, long-term hold | Smaller draws, flexible access |
📞 Call (800) 239-1103 for a DSCR cash-out refi analysis on your California rental property. We’ll quote the LTV, rate, and net proceeds same-day. NMLS #323700 | Michael DiVita NMLS #241655.
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
