Investor Refinance Options in Texas: Cash-Out, Rate-and-Term and More
The short answer
Investors generally have three refinance paths: rate-and-term (change the loan, not the balance), cash-out (pull equity), and DSCR refinances that qualify on the property's rent. Which fits depends on your goals, equity, credit and the property itself.
The main options
Rate-and-term: swap your loan for a different rate or term. Worth a look when the new terms clearly beat the old ones after costs.
Cash-out: borrow against equity for repairs, reserves or your next purchase. Investor properties usually have lower maximum loan-to-value than primary homes.
DSCR refinance: qualify on rental income instead of personal income, which can help if your tax returns do not tell the whole story.
Questions to ask first
What are the closing costs, and how long until they pay for themselves?
Is there a prepayment penalty on the new or current loan?
How much equity and cash reserve will the lender require?
Texas has its own home equity rules for primary residences, covered in our Texas cash-out refinance guide. Investment properties follow different rules, so ask us about your specific property.
Frequently asked questions
How soon can I refinance a rental?
Many lenders have seasoning requirements after purchase. These vary by program.
Can I refinance my own home this way?
No. Business-purpose loans are not for owner-occupied use.
Want to talk through options? Call (469) 414-5554 or visit https://mohavemortgages.net/home-texas.
By Kelly Welton, Mortgage Broker (NMLS #314183), Mohave Mortgage Texas Branch. Mohave Mortgage NMLS #1830581 · Texas Branch NMLS #2690682 · Equal Housing Opportunity. General information only, not a commitment to lend or financial advice. Programs, rates and guidelines vary and change.
