Cash-out refinance on a 4-unit in Texas, $2M value, 720 credit score. What DSCR programs work?

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Accepted Answer

For a 4-unit NOO investment property in Texas at $2M value, 720 FICO, cash-out refinance, nine DSCR programs across five lenders are eligible — with cash-out LTV ranging from 60% to 75% depending on the program and DSCR tier. Texas Section 50(a)(6) does NOT apply here, as that restriction is limited to owner-occupied homesteads and is not triggered by an NOO investment property.

Texas Cash-Out Note — All Programs

New Wave Lending's guidelines explicitly state: "Texas Section 50(a)(6)" loans are ineligible for cash-out. This is a Texas constitutional provision that applies to cash-out refinances on owner-occupied homesteads — it does NOT apply to investment/NOO properties. Texas is a permitted state on all DSCR programs reviewed.

Program-by-Program Breakdown

1. Nations Direct Mortgage — Ignite Express DSCR

Max C/O LTV: 70% (DSCR >= 1.00) | 65% (DSCR 0.75–0.99) at the $1,500,001–$2,000,000 loan amount tier, 720 FICO
4-unit overlay: "2-4 Units, Warrantable and Non-Warrantable Condos — Purchase/Rate and Term Maximum LTV 80%; Cash Out Maximum LTV 75%." Base matrix 70% is the binding constraint for this loan amount band.
Max loan amount: $4,000,000
Max cash-in-hand: "Max Cash Out <= 60% — Unlimited; Max Cash Out > 60% $500,000"
Reserves: 9 months for loan amounts $1,500,001–$2,000,000; cash-out proceeds may be applied toward reserves
Investor experience: "At least one applicant must have a 12-month history of managing/owning rental properties in the most recent three year period."

2. Nations Direct Mortgage — NonQM Express DSCR (Product 110/130)

Max C/O LTV: 70% at $1,500,001–$2,000,000, 720 FICO, DSCR >= 1.00
4-unit overlay: "2-4 Units, Warrantable and Non-Warrantable Condos — Maximum LTV 75% Product Code 110 Only: Maximum LTV Purchase 75%; Refinance 70%." Consistent with base matrix.
Max loan amount: $2,000,000 on Product 130
Texas confirmed eligible: prepayment penalties are permitted in TX without restrictions
Important: Cash-out is ineligible if a prior cash-out transaction occurred within the last 6 months

3. JMAC Lending — Newport DSCR

Max C/O LTV: 70% | Max loan amount: $3,000,000
At $1,500,001–$2,000,000, 720 FICO (700+ tier), DSCR >= 1.00: Cash-Out 70%; Rate & Term 75%
4-unit eligible: "Single Family, PUD (Attached, Detached), 2-4 Units"
Max cash-in-hand: "LTV > 65%: $600K | LTV <= 65%: $1M | LTV <= 60%: Unlimited"
Reserves: "Loan Amt > $1.5M: 2-months PITIA; Loan Amt > $2.5M: 6-months PITIA. Cash-Out MAY be used to satisfy reserves."
Asset utilization available to boost DSCR value if needed
Two appraisals required: "Loan amount >= $2.0 requires 2 appraisals."
Title seasoning: "No title seasoning" required

4. JMAC Lending — Venice DSCR

Max C/O LTV: 70% | Max loan amount: $3,500,000
At $1,500,001–$2,000,000, FICO 700+ tier, DSCR >= 1.00: Cash-Out 70%; Rate & Term 70%
4-unit overlay: "Property Type restrictions (Condo, Non-warrantable & 2-4 Units) — R&T and Cash-Out max 70%." Consistent with base matrix.
Max cash-in-hand: "LTV >= 65%: $500,000 | LTV < 65%: $1,000,000"
Reserves: "Loan Amt > $1.5M: 6 PITIA (ITIA). Cash-out Allowed for reserve."
Title seasoning: "6 months seasoned to use the higher of the purchase price or current market value."
Two appraisals required if loan amount > $2M

5. JMAC Lending — Prime DSCR

Max loan amount: $2,000,000 — this scenario is at the ceiling depending on LTV selected
C/O LTV tiered by DSCR at $1,500,001–$2,000,000, 720 FICO :

DSCR Tier	Cash-Out LTV
1.000–1.149	65%
1.150–1.499	75%
>= 1.500	75%

4-unit eligible: "SFR, PUD, Condo, 2-4 Unit" overlay: "Property Type restrictions (Condo & 2-4 Units) — R&T and Cash-Out max 70%."
Max cash-in-hand: $500,000
Short-term rentals not allowed; minimum DSCR >= 1.00 required

6. Greenbox — Elite DSCR

Max C/O LTV: 75% at $1,500,001–$2,000,000, 720 FICO (exceeds 700 tier), DSCR >= 1.00
4-unit overlay: "3-4 Units and Condos: Max 75% LTV" — aligned with base cash-out figure; 75% is the binding constraint.
Max cash-in-hand: "DSCR >= 1.00x: LTV > 70%: $500,000; LTV <= 70%: Unlimited"
Reserves: "LAMT > $1.5mm: 6 months. Cash out may be used for reserves."
2-4 unit property types explicitly eligible no Texas state restriction cited.

7. Greenbox — Elite Plus DSCR

Max C/O LTV: 75% at $1,500,001–$2,000,000, 720 FICO
4-unit overlay: "Warrantable Condos & 2-4 Units: Max 75% LTV" — consistent with base matrix. Among the more generous cash-out LTVs for this loan size tier.
Max loan amount: $2,000,000
Minimum DSCR: 1.00x for long-term rental; 1.15x for STR
Reserves: "LAMT > $1.0mm: 6 months. Cash out may be used for reserves."
Max cash-in-hand: "LTV <= 55%: Unlimited; LTV <= 70%: $1,000,000; LTV > 70%: $500,000"
Non-Permanent Resident Aliens and ITIN borrowers are ineligible

8. Forward Lending — Core DSCR (1-4 Unit)

Max C/O LTV on 2-4 Units: 70%
Property type restriction: "Property Type restrictions (Condo, Non-warrantable & 2-4 Units) — Purchase: 75%; R&T and Cash-Out max 70%."
At 720 FICO, DSCR >= 1.00, $1.5M–$2.0M loan range: cash-out LTV capped at 70%
Max cash-in-hand: "$500,000 at LTV >= 65%; $1,000,000 at LTV < 65%."
Vacancy overlay: "65% Max LTV — Cash-out" if any unit is unleased/vacant

9. New Wave Lending — AQM DSCR Prime

Max C/O LTV: 60% at $2,000,000, 720 FICO, DSCR >= 1.00
2-4 unit overlay states: "Condo & 2-4 Unit: Max LTV 75%" — does not override the base matrix; 60% at the $2M tier is the binding constraint.
Interest Only: "Min FICO 700; Reduce Max LTV by 5%."
Investor experience required: "All borrowers must meet experienced investor requirement" — "A borrower who has history of owning and managing commercial or non-owner-occupied residential real estate for at least 12 months in the last 24 months."

Summary Comparison

Lender / Program	Max C/O LTV (720 FICO, $1.5M–$2M, 4-unit)	Max Loan Amount	Max Cash-in-Hand
Nations Direct — Ignite Express DSCR	70%	$4,000,000	$500K if LTV > 60%
Nations Direct — NonQM Express DSCR	70%	$2,000,000 (Prod. 130)	$500K if LTV > 60%
JMAC — Newport DSCR	70%	$3,000,000	$600K if LTV > 65%
JMAC — Venice DSCR	70%	$3,500,000	$500K if LTV >= 65%
JMAC — Prime DSCR	65–75% (DSCR-tiered)	$2,000,000	$500K
Greenbox — Elite DSCR	75%	$3,000,000+	$500K if LTV > 70%
Greenbox — Elite Plus DSCR	75%	$2,000,000	$500K if LTV > 70%
Forward Lending — Core DSCR	70%	$3,500,000	$500K if LTV >= 65%
New Wave — AQM DSCR Prime	60%	Varies	N/A

Key Cross-Program Conditions

4-unit overlay is universal: Every program caps cash-out LTV at 70–75% for 2-4 unit properties. No program permits the standard base matrix LTV (which can reach 80%+ for SFR) on a 4-unit cash-out refi.
Two appraisals: At or above $2M loan amount, JMAC Newport, Venice, and Prime all require two full appraisals; LTV is based on the lower of the two values.
Investor experience: Nations Direct Ignite/NonQM, JMAC Newport, New Wave AQM, and Forward Lending all require at least one borrower to have a documented 12-month history of owning/managing rental properties.
Business purpose requirement: All programs require cash-out proceeds to be used for business purposes only. A business purpose letter is typically required at origination.
Title seasoning: Newport DSCR has no title seasoning requirement; Venice, Prime, Forward Lending, and New Wave AQM require 6 months of ownership before using appraised value.
Best LTV options: Greenbox Elite DSCR and Elite Plus DSCR offer the highest cash-out LTV at 75% for this loan size with 720 FICO on a 4-unit, yielding up to $1,500,000 in loan proceeds on the $2M value — subject to DSCR coverage and cash-in-hand caps.

Cash-out refinance on a 4-unit in Texas, $2M value, 720 credit score. What DSCR programs work?

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