If you’re a real estate investor, finding smart ways to manage and grow your portfolio is essential. One effective strategy is refinancing your investment properties with a DSCR loan. Unlike traditional mortgage loans, DSCR refinance loans focus solely on the income your rental property generates—so you don’t have to provide W-2s or personal tax returns. The DSCR refinance calculator helps you estimate savings, new loan terms, and monthly payments with just a few inputs.

KEY TAKEAWAYS

  • DSCR refinance loans are based on rental income and property expenses, not personal income or employment status.
  • A DSCR cash-out refinance loan lets investors access up to 80% of their property’s value to reinvest or cover large expenses.
  • The DSCR refinance calculator helps estimate potential monthly savings, interest changes, and your property’s loan performance.
  • These loans are often easier to qualify for than conventional loans for self-employed investors or LLC-owned properties.

DSCR Refinance Calculator

DSCR Refinance Calculator
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What Is a DSCR Loan?

A DSCR loan, or debt service coverage ratio loan, is a non-QM (non-qualified mortgage) loan product designed for real estate investors. It uses the income generated by a rental property—rather than personal income—to determine a borrower’s ability to repay the loan. Lenders calculate the DSCR by dividing the property’s gross rental income by the total monthly debt payments, including the mortgage. A ratio of 1.0 or higher typically indicates that the property generates enough income to cover its obligations, making the borrower a lower risk to lenders.

DSCR loans are especially popular among self-employed investors or those using LLCs to manage their properties. These loans also include more flexible documentation requirements, making them faster and easier to process. In addition to traditional mortgages, investors can explore a DSCR HELOAN, a home equity loan that allows you to access equity in an investment property without refinancing the existing mortgage. Both products give investors more leverage and liquidity without sacrificing financial stability.

What Is a DSCR Refinance Loan?

A DSCR refinance loan is a way to replace an existing mortgage on a rental property with a new one, based primarily on how well the property performs financially. Rather than relying on credit scores or tax returns, lenders review the rental income in relation to your monthly expenses and debts. If the property’s income sufficiently covers the loan payments, you can qualify for a refinance, even if you have limited verifiable income. This structure provides a major advantage for full-time investors, especially those whose income fluctuates or isn’t captured on standard tax forms.

In addition to standard refinances, a DSCR cash-out refinance loan allows you to withdraw equity from your property, often up to 80% of its current market value. This cash can be used for property improvements, debt consolidation, or as capital for your next investment. It’s a powerful tool for growing your portfolio, improving your property’s value, or increasing cash flow without impacting your personal finances or dipping into savings.

Benefits of a DSCR Refinance Loan

Refinancing with a DSCR loan offers a range of advantages tailored to real estate investors. Whether you’re aiming to improve cash flow, access equity, or simplify your financing process, DSCR refinance loans provide the flexibility and ease that traditional loans often lack. Below are some of the key benefits to consider:

  • No personal income documentation required: One of the most appealing aspects of DSCR refinance loans is the lack of personal income documentation. You won’t need to submit W-2s, tax returns, or pay stubs. Instead, qualification is based on the property’s performance, which streamlines the application process and removes hurdles that often delay traditional loan approvals.
  • Cash-out refinance option for liquidity: A DSCR cash-out refinance loan gives you access to up to 80% of your investment property’s value. That means you can extract equity and use the funds for anything from purchasing a new property to upgrading your current one. It’s a strategic way to unlock working capital without taking on new unsecured debt.
  • Ideal for LLCs and business entities: If your investment property is held in an LLC or business entity, DSCR loans are a great fit. Traditional lenders may require the loan to be in your personal name, but DSCR lenders often allow you to keep ownership under the LLC—helping you maintain liability protection and simplify tax planning.
  • Flexible for short term rentals: Whether you operate long-term leases or short-term vacation rentals like Airbnb or Vrbo, DSCR refinance loans are adaptable. Lenders may use historical rental income or projected income based on third-party platforms (e.g., AirDNA) to evaluate your eligibility. This is a huge plus for investors in the short-term rental space.
  • Faster closing and less paperwork: Because DSCR loans don’t rely on personal income verification or extensive documentation, they tend to close faster than conventional loans. This can be a competitive advantage if you need to refinance quickly to lock in a better rate or access funds for time-sensitive opportunities.

How the DSCR Refinance Calculator Works

The DSCR refinance calculator is a powerful tool designed to help you evaluate your refinance options using your property’s income and expenses. It’s especially useful for investors exploring their refinancing potential or comparing different loan structures. By entering a few key details, you can instantly estimate your new monthly mortgage payment, overall savings, and whether your debt service coverage ratio meets lender thresholds.

1. Income and Expenses

  • Monthly rental income: The gross monthly income your property generates.
  • Monthly operating expenses: Costs such as maintenance, management, insurance, and taxes.

2. Current Mortgage Information

  • Current loan balance: The remaining balance on your existing mortgage.
  • Current interest rate: The interest rate you’re currently paying.
  • Current monthly payment: Your current monthly mortgage payment.

3. New Loan Information

  • New interest rate: The proposed rate for the refinance loan.
  • New loan term (months): The desired length of the new loan in months.

After entering this information, the calculator will provide estimates for your:

  • New monthly payment
  • The change in your DSCR
  • Estimated monthly savings
  • Estimated total savings over the life of the loan

If you’re still exploring your financing options, you might also consider using our DSCR loan calculator. While similar, that tool focuses on whether you qualify for a loan based on the property’s income alone, without comparing refinance scenarios.

Two people sit at a desk with a laptop and model buildings on it and review a contract.

Explore Your Refinancing Options Today

Whether you want to improve your loan terms, reduce your monthly payments, or extract equity for future investments, a DSCR refinance loan puts the focus where it belongs: on the performance of your property. These loans are especially well-suited for investors managing multiple properties, using LLCs, or generating income through short-term rentals. With fewer documentation requirements and greater flexibility, a DSCR refinance could be the key to scaling your portfolio more efficiently.

At Griffin Funding, we specialize in helping real estate investors tap into financing solutions that align with their strategy and growth goals. Our DSCR refinance options are built to work with your existing structure, helping you qualify quickly and close with confidence. Plus, the Griffin Gold app streamlines the entire process—letting you upload documents, track loan status, and message your loan officer right from your mobile device. Explore your refinancing options today and take the next step toward optimizing your investment property financing.

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Frequently Asked Questions

Can DSCR loans be refinanced?

Yes, DSCR loans can be refinanced just like traditional loans. Many investors choose to refinance their DSCR loans to secure lower interest rates, adjust loan terms, or access equity through a cash-out refinance.

Is it hard to get a DSCR refinance loan?

DSCR refinance loans are generally easier to qualify for than conventional loans if your property generates steady rental income. As long as your property meets the required DSCR threshold (typically 1.0 or higher), you have a strong chance of approval without needing to verify personal income.

How much does it cost to refinance an investment property?

Refinancing costs can include lender fees, appraisal fees, title insurance, and closing costs, often totaling 2% to 5% of the loan amount. Some lenders may also charge prepayment penalties or require reserves, so it's important to review the full cost breakdown before committing to a refinance.

Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 24 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 12 years in business.