The Ultimate Guide to Cash-Out Refinancing in 2025 |Mortgage & Investment Loans

A cash-out refinance replaces your existing mortgage with a new, larger loan—allowing you to withdraw the difference as cash. The amount you can borrow depends on your home’s equity, loan-to-value ratio (LTV), and credit score.

✔ Use home equity to fund renovations, debt consolidation, or investments.
✔ Available for primary residences, second homes, and investment properties.
✔ Lower interest rates than personal loans or HELOCs.

How Much Can You Borrow?

Most lenders allow you to cash out up to 85% of your home’s value (LTV), though investment property refinances may have lower limits.

⏳ Pro Tip: The more equity you have, the more cash you can take out—without significantly increasing your mortgage payment.

Cash-Out Refinance Loan Options

1. Cash-Out Refinance for Primary Residences

✔ Borrow up to 85% of your home’s value.
✔ Best for home improvements, debt consolidation, or major expenses.
✔ Loan Programs: Apex Prime, Montage Prime
📄 [Download Full Doc Loan PDF]

2. Investment Property Cash-Out Refinance

✔ Max LTV: 75-80% for rental properties.
✔ Qualify using rental income instead of personal income.
✔ Loan Programs: Elite Loan (DSCR Loan), Aspire X
📄 [Download DSCR Loan PDF]

3. Self-Employed Borrowers – No Tax Returns Needed

✔ Bank Statement Loans & 1099 Loans allow cash-out refinancing without W-2s.
✔ Qualify based on business or independent contractor income.
✔ Loan Programs: Bank Statement Loan, 1099 Loan, P&L Loan

4. Hard Money Cash-Out Refinance – Fast Funding for Investors

✔ Quick approvals & funding in as little as 10 days.
✔ No income verification required—loans based on property value.
✔ Loan Programs: Asset based, Alternative Doc, Full Doc

⏳ Investor Tip: A DSCR cash-out refinance allows investors to leverage rental properties without proving personal income.

Frequently Asked Questions (FAQ)

What credit score do I need for a cash-out refinance?

Most lenders require 620+ for primary residences and 660+ for investment properties.

Can I do a cash-out refinance on an investment property?

Yes! DSCR Loans and Aspire X allow cash-out refinancing on investment properties.

What’s the max loan-to-value (LTV) for a cash-out refinance?

✔ Primary Residence: Up to 85% LTV.
✔ Investment Property: Typically 75-80% LTV.

Are there prepayment penalties for cash-out refinances?

Some Non-QM loans may have prepayment penalties, but Full Doc loans usually do not.

How quickly can I close on a cash-out refinance?

✔ Full Doc Loans: 3-4 weeks.
✔ DSCR Loans & Bank Statement Loans: 3-5 weeks.
✔ Hard Money Loans: As fast as 10 days.