A DSCR rate/term refinance replaces an existing loan on an investment property with a new one, without pulling additional cash out. Investors typically consider this to pursue different loan terms as their strategy, cash flow needs, or the market shifts.
Common reasons to refinance
- Pursuing a different rate or amortization structure
- Moving from a shorter-term or bridge-style loan into longer-term financing
- Removing a partner or restructuring ownership
- Adjusting terms after the property's income has changed (e.g., after a lease-up period)
How DSCR factors in
As with a purchase, a refinance is evaluated on the property's current rental income relative to its new proposed debt obligation. If the property's income has grown since acquisition, that can work in your favor when a lender recalculates DSCR for the new loan amount.
What we'll ask
Our qualification flow asks for your current loan balance and the property's estimated value and rental income, so we can get a sense of where a refinance scenario might land before matching it to available programs.
Ready to see how this applies to your property?