Investors seeking to maximize the value of their real estate portfolios often turn to cash-out refinancing as a powerful financial strategy. By leveraging the equity in their properties, investors can secure additional funds for house renovations, new acquisitions, or even debt consolidation solutions. But with so many mortgage lenders and loan options available, how do you determine which cash-out refinance loan best suits your investment property strategy?
Top 5 Cash-Out Refinance Loans for Investment Properties in 2026
The RefiGuide has been working with the trusted banks and lenders many years that offer competitive cash out refinancing on investment and rental properties.
Let’s explore the top five cash-out refinance loans for investment properties in 2026 and see how they can propel your financial growth.
1. Fannie Mae’s Cash-Out Refinance Loan
Fannie Mae’s cash-out refinance program is a go-to option for many real estate investors due to its favorable terms and accessibility.
Key Benefits:
- Competitive interest rates for qualified borrowers
- Loan-to-value (LTV) ratios up to 75% for single-unit investment properties
- Fixed and adjustable-rate mortgage options
- Extended loan terms to help reduce monthly payments
Why settle for a high-interest loan when you can secure financing backed by one of the largest mortgage institutions in the country? With Fannie Mae, you gain stability and flexibility to expand your portfolio strategically.
2. Freddie Mac Investment Property Cash-Out Refinance
Freddie Mac offers a similar yet distinct refinance program tailored to real estate investors looking for favorable loan structures.
Key Benefits:
- Maximum LTV of 70-75% depending on property type
- Competitive interest rates to enhance cash flow
- Allows for refinancing multiple properties at once
- Offers fixed-rate and adjustable-rate loan structures
Whether you’re refinancing a single-family home or a multi-unit property, Freddie Mac’s program provides the leverage needed to boost your investment potential.
For investors who don’t meet traditional lending criteria or prefer more flexible financing solutions, portfolio loans from private lenders can be a game-changer.
Key Benefits:
- No strict credit score requirements
- Higher LTV ratios, sometimes up to 80%
- More lenient income verification standards
- Faster approval and funding process
Why jump through hoops with conventional lenders when private lenders offer the flexibility and speed investors need? With fewer restrictions and customized loan structures, portfolio loans cater to investors seeking rapid capital deployment.
4. DSCR Loans
Debt-Service Coverage Ratio loans are specifically designed for real estate investors whose income primarily comes from rental properties. Instead of using traditional income verification, these loans focus on a property’s cash flow to determine loan eligibility.
Key Benefits:
- No personal income verification required
- Loan approvals based on rental income rather than W-2 income
- LTV ratios of up to 75-80%
- Ideal for investors with multiple rental properties
If your rental properties generate steady income, why let traditional income limitations hold you back? DSCR cash out refinances ensure that your assets, not just your tax returns, dictate your borrowing potential.
5. HELOC on Investment Property
A HELOC is an alternative to traditional cash-out refinancing that allows investors to access property equity on an as-needed basis. Instead of receiving a lump sum, you get a revolving line of credit to withdraw from whenever necessary.
Key Benefits:
- Flexible access to capital
- Interest-only payments during the draw period
- Competitive variable interest rates
- Retains your primary mortgage structure
Top 8 Ranked Lenders for Cash-Out Refinancing on Investment Properties in 2026
In 2026, with investment property values up 6% year-over-year and cash-out refinance rates averaging 7.5-8.5% amid stabilizing Fed policies, unlocking equity from rentals has never been more strategic. Cash-out refis allow investors to pull up to 75% LTV for expansions, debt consolidation, or rehabs, but options are limited to Non-QM and specialty lenders due to higher risk. Drawing from HMDA data, RefiGuide, J.D. Power rankings, and borrower reviews on platforms like Trustpilot and BiggerPockets, we’ve ranked the top 8 lenders specializing in investment property cash-outs. Criteria include rates, LTV max (typically 70-80%), closing speed (30-45 days), and investor satisfaction. These standouts offer DSCR-based approvals, flexible terms up to 30 years, and jumbo options to $3M+.
| Lender · NMLS # | Est. Rate Range | Max LTV · Min. Credit | Best For |
|---|---|---|---|
| Rocket Mortgage NMLS #3030 · Detroit, MI | 6.50%–7.50% 30-yr fixed | 75% LTV · 680 min. | Largest U.S. lender · fully digital close · conventional investment property cash-out · J.D. Power #1 satisfaction · all 50 states |
loanDepot NMLS #174457 · Irvine, CA |
6.60%–7.60% 30-yr fixed | 75% LTV · 680 min. | Lifetime Guarantee — future refi has lender fee waived · 200+ branches · conventional + DSCR cash-out · all 50 states |
| CrossCountry Mortgage NMLS #3029 · Brecksville, OH | 6.50%–7.50% 30-yr fixed | 75% LTV · 620 min. | America’s #1 retail lender by volume · 21-day avg close · DSCR cash-out for investors · all 50 states + DC |
| Griffin Funding NMLS #1120111 · CA-based | 7.00%–9.00% DSCR / bank statement | 80% LTV · 620 min. | DSCR cash-out + bank statement cash-out · no personal income required · STR/Airbnb OK · most U.S. states |
| New American Funding NMLS #6606 · Santa Ana, CA | 6.60%–7.70% 30-yr fixed | 75% LTV · 580 min. | DTI up to 57% · manual underwriting available · 580 FICO accepted · 14-day close · 49 states (excl. HI) |
| Angel Oak Mortgage Solutions NMLS #1160240 · Atlanta, GA | 7.25%–9.50% Non-QM | 80% LTV · 620 min. | DSCR cash-out · bank statement cash-out · investor-focused Non-QM · 0-day seasoning · wholesale only via broker |
| Kiavi NMLS #1125207 | 7.50%–9.50% DSCR / bridge | 80% LTV · 660 min. | Fix-and-flip + rental portfolio cash-out · AI-powered underwriting · 7-day close · no personal income docs · most U.S. states |
| Truss Financial Group NMLS #2006915 | 7.50%–10.00% DSCR / Non-QM | 80% LTV · 620 min. | DSCR cash-out + DSCR HELOC · STR/Airbnb income accepted · DSCR ≥0.75 · value-add |
Investment property cash-out refinance rates carry a 0.50%–1.00% premium over primary residence rates. Max LTV for conventional investment property cash-out is 75% (Fannie Mae / Freddie Mac). DSCR and Non-QM lenders may allow up to 80% LTV. Rates assume 700+ FICO, 75% LTV, single-family rental, 30-yr fixed as of March 2026. NMLS numbers verified from official lender licensing disclosures — verify at nmlsconsumeraccess.org. Updated March 2026.
Why take out more cash than you need when a HELOC allows you to draw funds when necessary, minimizing interest costs and maximizing liquidity? This solution is perfect for investors seeking on-demand financial flexibility.
Cash-out refinance loans are a powerful way for investors to unlock their property’s equity and fuel their real estate ambitions.
Whether you choose Fannie Mae, Freddie Mac, private portfolio loans, DSCR cash out loans, or a HELOC, each option offers unique advantages suited to different investment strategies.
So, which cash out refi will you choose to grow your portfolio in 2025?
The answer lies in aligning your financial goals with the loan that best meets your needs.
Smart investing is about leveraging opportunities, and a well-planned cash-out refinance can be your key to exponential real estate growth.
The RefiGuide will help you shop for the best cash-out refinancing programs for investment properties and rental homes from trusted banks and mortgage lenders.
12 Key Benefits of Cash-Out Refinance Investment Property Loans
Investing in real estate can be a powerful way to build wealth, but unlocking liquidity within your property can be a challenge. This is where a cash-out refinance on investment property loans comes in—a financial tool that allows investors to leverage their property’s equity for greater financial gains. But why should you consider this strategy? What makes it a game-changer for investors looking to scale their real estate portfolios? Let’s explore the 12 key benefits of cash-out refinance investment property loans and see how they can work in your favor.
1. Access to Capital for Further Investments
One of the most significant advantages of cash-out refinancing is the ability to tap into your home’s built-up equity. Instead of letting that wealth sit idle, you can reinvest it into additional properties, thereby compounding your returns and expanding your real estate holdings.
2. Lower Interest Rates Compared to Other Financing Options
Compared to personal loans, credit cards, or even hard money loans, cash-out refinances often come with lower interest rates. Why pay exorbitant rates on unsecured loans when you can leverage your existing asset for better terms?
3. Increased Cash Flow for Renovations
Whether you want to upgrade a rental property or add value through renovations, using cash-out refinance proceeds can be a strategic move. Enhancing a property’s appeal can lead to higher rental income, increased market value, and a more competitive edge in the rental market.
4. Debt Consolidation and Improved Financial Health
If you have multiple high-interest debts, a cash-out refinance can help you consolidate them into one manageable loan with a lower rate. This can reduce your overall financial burden and improve your credit score over time as you eliminate outstanding obligations.
5. Tax Advantages for Real Estate Investors
In many cases, interest paid on loans used for investment purposes may be tax-deductible. This means you could potentially deduct the interest on a cash-out refinance loan, reducing your taxable income and increasing your after-tax profits.
6. Flexible Use of Funds
Unlike some financing options that come with restrictions on how the money can be used, cash-out refinance loans allow investors to use the funds as they see fit. Whether it’s for expanding your portfolio, covering operating costs, or handling unexpected expenses, the choice is yours.
7. Opportunity to Secure a More Favorable Loan Term
Refinancing doesn’t just provide cash—it also gives you the chance to secure better loan terms, such as a lower interest rate, a fixed-rate mortgage instead of an adjustable-rate, or a different loan duration that better fits your financial goals.
8. Potential for Increased Property Value
Reinvesting the extracted cash into renovations and upgrades can significantly increase a property’s value, allowing you to build even more equity over time. This can be particularly beneficial in competitive real estate markets.
9. Hedge Against Inflation
As inflation rises, the real value of borrowed money decreases. A cash-out refinance allows you to capitalize on today’s lower-value dollars while acquiring more appreciating assets in a rising market.
10. Avoiding the Hassle of Selling
Selling a property comes with costs, taxes, and the challenge of reinvesting profits into another property quickly. Instead, a cash-out refinance lets you retain ownership while still accessing equity, maintaining your portfolio and avoiding capital gains tax implications.
11. Stronger Position in a Competitive Market
Real estate investors often need to act fast to seize profitable deals. With liquidity readily available from a cash-out refinance, you can move quickly on opportunities that require immediate funding, giving you an edge over competitors who need traditional financing.
12. Long-Term Wealth Building Strategy
Ultimately, real estate is about long-term growth, and a cash-out refinance supports this strategy by enabling portfolio expansion, increasing cash flow, and boosting investment returns over time. By leveraging existing assets wisely, investors can create sustainable wealth.
Final Tips for Cash Out Refinancing on Investment Properties
A cash-out refinance investment property loan is not just a financial tool—it’s a strategic advantage that can propel investors toward their long-term real estate goals. Why let equity sit dormant when it can be working for you? With the right approach, this financing strategy can unlock new opportunities, enhance cash flow, and accelerate wealth creation.
If you’re considering a cash-out refinance, carefully evaluate your financial position, market conditions, and investment goals to ensure it aligns with your broader wealth-building strategy. Because in real estate, the smartest investors aren’t just buying properties—they’re maximizing their potential.
Updated by: Bryan Dornan, Lending Expert (25+ years) | Updated: March 2026 | Fact-Checked ✓
FAQ on Investment Property Cash Out Refinances
How much equity do you need for a cash-out refinance on an investment property?
Most lenders require at least 25-30% equity in the property to qualify for a cash-out refinance. This means your loan-to-value (LTV) ratio should typically be 70-75% or lower after the refinance. The maximum loan-to-value (LTV) for a cash-out refinance on an investment property is typically 65% to 75%, depending on the lender, loan program, and borrower profile. Conventional lenders often cap cash-out refinances at the lower end of that range, while DSCR and non-QM lenders may allow higher LTVs if rental income supports the loan. Maintaining strong equity is critical, as investment properties carry more risk than primary residences. The exact amount depends on the lender and your financial profile, but maintaining sufficient equity ensures you qualify for competitive rates and better loan terms.
How long do you have to own an investment property before doing a cash-out refinance?
Most conventional lenders require 6-12 months of investment property ownership before cash-out refinancing, applying seasoning requirements preventing immediate equity extraction. Fannie Mae and Freddie Mac mandate 6-month minimum ownership for rate-and-term refinances but often extend this to 12 months for cash-out refinances on investment properties. The refinance is based on current appraised value, but properties owned under 12 months may be limited to original purchase price plus documented improvements, preventing cash-out on appreciation gains. Exception: portfolio lenders sometimes allow cash-out refinancing immediately after purchase at premium rates (9.0-11.0%) if substantial equity exists from discounted purchases. Properties acquired through inheritance, divorce, or legal settlements may bypass seasoning requirements with proper documentation. DSCR loans occasionally permit immediate cash-out refinancing focusing on property cash flow rather than ownership duration, though rates increase 0.50-1.00% without seasoning.
Can you do a cash-out refinance on a vacant investment property?
Yes, but vacant investment property cash-out refinances face significantly tighter requirements and higher costs than occupied properties. Lenders view vacancy as increased risk requiring compensating factors: maximum 65-70% LTV (versus 75% occupied), 12-18 month reserves (versus 6 months), 720+ credit scores, and 0.50-1.00% rate premiums. You must demonstrate clear rental potential through appraisal rental income analysis (Form 1007) showing market rents supporting the new mortgage payment at 1.20+ DSCR. Short-term vacancy during tenant turnover (under 60 days) receives better treatment than long-term vacancy (6+ months) suggesting rental demand issues. Properties being renovated qualify more easily with contractor estimates and timelines showing rental readiness within 90 days. Some lenders require signed lease agreements or proof of tenant applications before closing. Alternative: delay refinancing until property is rented and stabilized, improving approval odds and terms significantly.
Can you write off cash-out refinance costs on investment property taxes?
Yes, investment property cash-out refinance closing costs are tax-deductible, but deduction methods differ by expense type. Points and origination fees must be amortized over the loan term—$3,000 in points on a 30-year loan = $100 annual deduction for 30 years. However, appraisal fees, credit report costs, title insurance, recording fees, and legal expenses can be deducted immediately in the year paid as investment property operating expenses. Interest on cash-out proceeds is only deductible if funds are used for business purposes like property improvements, purchasing additional rentals, or paying rental property expenses—personal use of cash-out funds (paying off personal credit cards, vacations) eliminates interest deductibility. Maintain detailed records documenting how refinance proceeds were used. Consult tax professionals for specific situations, as IRS Publication 527 governs rental property deductions and requirements change periodically.
What DTI do you need for a cash-out refinance on an investment property?
Lenders usually require a debt-to-income (DTI) ratio of 43% or lower for a cash-out refinance on an investment property. However, some lenders allow higher DTIs, especially if you have strong credit and a history of profitable real estate investments. The lower your DTI, the better your chances of securing favorable loan terms.
Can I do a DSCR cash out refinance on investment property?
Yes, many non-QM lenders offer DSCR cash-out refinances on investment properties. These loans focus on the rental income the property generates rather than traditional income documentation. Investors use DSCR cash-out refinancing to unlock equity for additional purchases, renovations, or portfolio expansion. Qualification usually requires a DSCR of 1.0 or higher, meaning rental income covers the mortgage. While rates may be slightly higher, DSCR programs provide flexible access to investment capital.
Do non-QM lenders offer cash out refinancing on rental properties?
Yes, non-QM lenders often specialize in cash-out refinancing for rental properties. Unlike traditional lenders, they may allow alternative income verification, such as bank statements or asset depletion, and accept higher loan-to-value ratios. Non-QM loans are popular among self-employed investors or those with complex financial profiles. Although interest rates are usually higher than conventional loans, they provide flexible financing options for borrowers who don’t fit strict agency guidelines but want to tap property equity.
Which banks provide cash out refinance on investment property?
Several national and regional banks offer cash-out refinancing on investment properties, including Wells Fargo, Chase, Bank of America, and specialized lenders like West Capital Lending. Many credit unions and community banks also provide competitive options. Availability depends on your credit profile, loan-to-value ratio, and reserve funds. Since investment properties are considered riskier, expect higher rates and stricter underwriting. Comparing multiple investment property cash out lenders is the best way to secure favorable terms for your investment strategy.
Are the interest rates better on a cash-out refinance to buy investment property?
Generally, no. Cash-out refinance rates on investment properties are usually higher than rates for primary residences or rate-and-term refinances. Lenders price in additional risk because investment properties are more likely to default during economic stress. However, some DSCR lenders offer competitive pricing when rental income is strong, and market conditions are favorable. While rates may be higher, cash-out refinancing can still make sense if the funds are used for high-return investments.
Can I get a cash-out refinance with bad credit on an investment property?
Yes. Borrowers with poor or below-average credit may still qualify through DSCR lenders or hard money lenders. These programs focus more on property cash flow, equity, and asset value than personal credit scores. Expect higher interest rates, lower LTV limits, and shorter loan terms compared to conventional loans. While more expensive, these options provide access to capital when traditional lenders decline, making them popular among real estate investors. Learn more about the bad credit cash-out refinance possibilities.
Can I get an FHA cash out refinance on an investment property?
No, FHA cash-out refinancing is not available for investment properties. FHA programs are designed exclusively for primary residences where the borrower lives full time. Investors seeking to tap equity must use conventional, jumbo, or non-QM cash-out refinance options. If you own rental properties, lenders will typically limit loan-to-value to 70–75% and require stronger credit. Exploring DSCR or non-QM programs may be more suitable for investment-focused refinancing strategies.
Should I cash out my 401k to buy rental property?
Cashing out a 401k to buy a rental property is generally discouraged. Withdrawals before age 59½ may trigger income taxes and a 10% early withdrawal penalty, drastically reducing your available funds. Even without penalties, removing retirement savings reduces long-term compound growth. While real estate can generate returns, leveraging home equity loans, HELOCs, or DSCR financing is typically safer. It’s wise to consult both a financial planner and tax advisor before tapping retirement accounts for investment purposes.
Is a cash out refinance better than a HELOC on an investment property?
It depends on your goals. A cash-out refinance provides a lump sum with long-term fixed repayment, ideal for consolidating debt or funding major projects. However, it often carries higher closing costs and stricter underwriting. An investment property HELOC offers flexible, revolving credit for ongoing expenses, but typically comes with variable interest rates and lower LTV limits. Investors seeking stability may prefer cash-out refinancing, while those valuing flexibility often lean toward HELOCs. Comparing both options is crucial.
About Bryan Dornan
Bryan Dornan is a financial journalist and mortgage industry veteran with nearly 30 years of experience as a lender, loan officer, mortgage broker, and chief marketing officer. He currently serves as Chief Editor of RefiGuide.org, where he has built one of the most trusted mortgage education platforms in the United States. Bryan has founded multiple mortgage and digital marketing companies throughout his career and remains focused on helping homeowners leverage home equity wisely while making affordable homeownership accessible to everyday Americans. Bryan's continual focus is to educate homeowners how to leverage home equity while also promoting affordable home-ownership to consumers like you across the United States. He is a licensed California Real Estate Broker DRE: #01203791. and writes for RealtyTimes, Patch, Buzzfeed, Medium and other national publications. Find him on Twitter, Muckrack, and Linkedin
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