DSCR Cash-Out Refinance With No Seasoning: How to Access Your Equity Immediately
Most cash-out refinances require you to wait six months before you can touch the equity in your property. With a DSCR no seasoning cash-out refinance, that waiting period doesn’t exist. Here’s how it works and who it’s best suited for.
What Is Seasoning and Why Does It Matter?
Seasoning refers to the amount of time you’re required to hold a property before a lender will allow you to pull equity out through a cash-out refinance. On a traditional cash-out refinance, that’s typically six full months. For investors who bought a property, rehabbed it, and want to recoup their capital quickly — that six-month wait can be a serious obstacle.
The no seasoning DSCR cash-out refinance removes that requirement entirely. You can purchase a property, complete the rehab, and access the equity based on the new appraised value without waiting.
Who This Program Is Designed For
This program is particularly valuable for fix and hold investors. If you bought a property with a hard money loan, rehabbed it, and decided to hold it as a rental instead of flipping it, this is one of the fastest ways to pay off that hard money loan and recoup the capital you put in — all based on what the property is worth after the renovation, not what you paid for it.
It’s also a strong option for any investor sitting on a recently improved property who wants to pull equity out and redeploy it into the next deal without waiting half a year to do it.
Qualification Requirements
This program has some of the most accessible qualification criteria of any DSCR product:
- 660+ credit score — that’s the minimum to qualify
- No primary residence requirement — you don’t need to own your own home
- No rental management experience required
- No personal income verification — like all DSCR loans, no W2s or tax returns
How Much Equity Can You Access?
The amount you can pull out depends on whether the property is currently rented:
- Property is rented: Up to 75% LTV (loan to value). The lender will document the existing lease to support this
- Property is not yet rented: Up to 70% LTV — just a 5% reduction, and it’s not a deal breaker
For comparison, a traditional DSCR cash-out refinance with the standard six-month seasoning period allows up to 80% LTV. The no seasoning program caps out a bit lower, but the tradeoff is immediate access to your equity rather than waiting.
How the Property Value Is Determined
The lender orders a 1007 rent schedule appraisal, which determines both the current market value of the property and what it would rent for. That new appraised value — not what you originally paid — is what the LTV calculation is based on. If you’ve added significant value through a rehab, that improvement is fully captured in the new appraisal and works in your favor.
The rental income from the appraisal also needs to support a 1:1 DSCR ratio, meaning the projected rent should cover the full mortgage payment after principal, interest, taxes, insurance, and HOA.
The Key Advantage: Speed
FAQ
What is a no seasoning DSCR cash-out refinance? It’s a DSCR cash-out refinance that doesn’t require you to wait the typical six months before accessing your equity. You can pull equity out based on the new appraised value immediately after completing a rehab or acquisition.
How much can I cash out with no seasoning? Up to 75% LTV if the property is rented, or 70% LTV if it’s not yet rented.
What credit score do I need? A minimum of 660 is required to qualify.
Do I need to show income or own my primary residence? No on both counts. This program has no personal income requirement and no primary residence requirement.
How is the property value determined? The lender orders a new appraisal with a 1007 rent schedule. The cash-out amount is based on the new appraised value, which means post-rehab improvements are fully reflected.
How is this different from a traditional cash-out refinance? A traditional cash-out refinance requires six months of seasoning and allows up to 80% LTV. The no seasoning version allows immediate access but caps LTV at 75% (rented) or 70% (unreented).
Have questions about a DSCR cash-out refinance? I’m an investor myself and happy to walk through your specific scenario. Austin Clarence | NMLS #1509690 | (602) 737-2576 | aclarence@nexamortgage.com