INVESTMENT PROPERTY — Refinance Loan Types

Refinancing an investment property is all about improving cash flow, tapping equity, or repositioning the property for better returns. Here are the full refinance categories investors use in California.

1. DSCR Refinance (Debt Service Coverage Ratio)

Most popular investor refinance option

• Qualifies using rental income, not personal income
• No tax returns, no W‑2s, no pay stubs
• Works for long‑term and short‑term rentals
• Options:
  • Rate‑and‑Term
  • Cash‑Out (commonly up to 75–80% LTV)
• Best for: Investors scaling portfolios or optimizing cash flow

2. Conventional Investment Refinance

• Equity needed:
  • 25% for rate‑and‑term
  • 25–30% for cash‑out
• Rental income can help qualify
• Lower rates than DSCR if borrower has strong income + credit
• Best for: Investors with strong tax‑return income

3. Non‑QM Investor Refinance

(Bank Statement, 1099‑Only, Asset‑Based)

• Uses 12–24 months bank statements, 1099s, or assets
• Cash‑out available
• Flexible credit and DTI
• Great for: Self‑employed investors or those with complex income

4. Jumbo Investor Refinance

• For high‑value rentals
• Equity: 20–30%
• Available as rate‑and‑term or cash‑out
• Best for: Luxury rentals, coastal properties, multi‑unit investments

5. Hard Money / Bridge Refinance

• Asset‑based
• Fast approval
• Higher rates
• Best for:
  • Fix‑and‑flip
  • BRRRR strategy
  • Properties needing rehab before DSCR or conventional qualification

Commercial Refinance (5+ Units)

• Underwritten using NOI, cap rate, and DSCR
• Longer processing
• Cash‑out available
• Best for: Apartment buildings, mixed‑use, retail + residential