Refinance with a DSCR Cash Flow Loan – Even with Less Than 6 Months of Seasoning!

We help real estate investors maximize their returns by leveraging Debt Service Coverage Ratio (DSCR) loans, without personal income verification or strict seasoning requirements.

In this case study, we’ll show how one investor used a DSCR loan to refinance a recently renovated property in under six months, recoup their cash, and scale their portfolio.

The Scenario: Refinancing a Distressed Property in Just 4 Months

Our borrower recently:

• Purchased a distressed investment property in cash (no traditional mortgage).
• Used a hard money loan ($180,000) to fund renovations.
• Completed renovations and leased the property within four months.
• Needed to refinance to pull out equity and reinvest in another deal.

Loan Details:

• Loan Amount: $450,000
• CLTV: 75% (based on current appraised value post-renovation)
• FICO: 729
• DSCR: Met minimum requirements (based on rental income)

The Non-QM Solution: DSCR Loan with <6 Months Seasoning

Unlike traditional loans that require 6–12 months of seasoning, our DSCR Cash Flow Loan allowed the borrower to refinance immediately after renovations, using the updated appraised value instead of the original purchase price.

How It Worked:

• No Personal Income Verification – Approved based on rental cash flow, not W-2s or tax returns.
• Appraised Value Used (Not Purchase Price) – Since renovations were complete, the new appraisal reflected the property’s true market value.
• Fast Closing (7–14 Days) – Avoided the hard money loan’s balloon payment and secured long-term financing.
• Cash-Out to Reinvest – Freed up $450,000 to acquire another investment property.

DSCR Renovation Seasoning Requirements

If your property was acquired less than 6 months ago and renovated, you may still qualify using the current appraised value, provided:

• Original Listing Photos or Pre-Renovation Appraisal – Proves the property’s prior condition.
• Full Appraisal Showing Improvements – Must reflect all upgrades.
• FNMA/FHLMC Collateral Review (Score ≤2.5) – Ensures lender confidence in the valuation.

DSCR Loan for Your Next Investment Means

• No Income Documentation – Ideal for self-employed investors or those with high deductions.
• Quick Access to Equity – Refinance in months, not years.
• Portfolio Growth – Reinvest cash-out proceeds into new properties.
• LLC-Friendly – Buy and hold in an entity for asset protection.

Contact us today to see how much you qualify for, no personal income verification required!