Investor Refinances a Dallas Duplex With a DSCR Loan
Illustrative borrower: a self-employed investor in Dallas, TX who owned a cash-flowing duplex free of income documentation headaches.
The challenge
He wanted to pull equity out of the duplex to fund the down payment on a second rental, but his tax returns showed heavy write-offs that made conventional income qualification difficult.
The structure
Loan type: DSCR cash-out refinance (investment property)
A DSCR cash-out refinance qualified on the property's rental income alone, no tax returns, no personal income calculation. The duplex's rent covered the new payment at a 1.28x coverage ratio.
The outcome (illustrative)
- Cash-out proceeds funded the down payment on a second rental property.
- No personal income documentation required, qualification based on the property's DSCR.
- Portfolio grew from one door to three without selling the original asset.
Figures above are hypothetical and for education only. Your terms depend on credit, property, program guidelines, and market conditions at the time you apply, confirmed in a Loan Estimate, never on this page.
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