What is a DSCR refinance loan?
A DSCR (Debt Service Coverage Ratio) refinance loan is a cash-flow based financing solution designed for real estate investors looking to refinance an existing rental or income-producing property.
Instead of focusing primarily on personal income, DSCR refinance loans evaluate the property’s net operating income relative to its debt obligations. This allows investors to leverage strong property performance to secure long-term financing.
How Chavez Capital DSCR Refinance Loans Work
Chavez Capital partners with private and institutional lenders that specialize in DSCR refinance financing. Our team evaluates your property’s income, expenses, and performance to structure the right refinancing solution based on your investment goals.
Whether you are looking to improve cash flow, access equity, or transition from short-term financing, we guide you through underwriting and closing with clarity and efficiency.
DSCR Refinance Loan Highlights
- Cash-flow based underwriting (DSCR focused)
- Refinance existing rental or investment properties
- Options for rate-and-term or cash-out refinance
- Competitive amortization structures
- Interest-only or fixed payment options (program dependent)
- Faster evaluations compared to traditional banks
- Available nationwide (not available in UT, MN, VT, or SD)
Common DSCR Refinance Scenarios
- Lowering monthly debt service
- mproving loan terms or amortization
- Pulling equity from a cash-flowing property
- Transitioning from bridge or construction financing
- Stabilizing long-term rental portfolios
Cash-Out Vs Rate-And-Term DSCR Refinance
Rate-and-Term DSCR Refinance
A rate-and-term DSCR refinance replaces an existing loan with improved terms, such as a lower interest rate, extended amortization, or modified loan structure. This option focuses on optimizing cash flow without pulling significant equity from the property.
Common reasons investors choose rate-and-term refinance
- Lower monthly payments
- Improve loan structure or amortization
- Replace short-term or higher-rate loans
- Stabilize long-term financing
Cash-Out DSCR Refinance
A cash-out DSCR refinance allows investors to refinance an existing rental property while accessing a portion of available equity. Cash-out amounts are determined by property value and cash flow.
Common reasons investors choose cash-out refinance
- Recycle capital into new investments
- Fund additional acquisitions
- Pay off other investment-related debt
- Increase portfolio liquidity
How The DSCR Refinance Process Works
1. Apply
Submit basic property and loan details to receive initial terms.
2. Confirm Terms & Submit Documents
Upload required refinance documentation.
3. Underwriting
Our team evaluates property cash flow and risk factors.
4. Approval
Receive final approval and updated term sheet.
5. Closing & Funding
Closing documents are prepared and funds are disbursed.
DSCR Refinance FAQs
DSCR (Debt Service Coverage Ratio) measures a property’s ability to cover its debt obligations using net operating income.
Most programs look for a ratio above 1.0, subject to lender guidelines.
A rate-and-term refinance focuses on improving loan terms, while a cash-out refinance allows investors to access equity from a cash-flowing property.
No. DSCR refinance loans primarily evaluate property cash flow rather than personal income.
Yes, DSCR refinance loans are available in 46 states, excluding UT, MN, VT, and SD.
Ready to Refinance Your Investment Property?
Apply today to see if your property qualifies for a DSCR refinance loan.