Cash-Out Refinance Hard Money Loans
A Cash-out Refinance gives the ability to create a new loan on an existing property that has amassed equity, while rewarding the investor with a lump sum of cash.
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Cash-Out Refinance Lending
In need of extra cash? Have untapped equity in an investment property? Look no further than Alpha Funding Capital’s Cash-out Refinance Program. Our fast, easy, and reliable program can be used to extract cash from properties owned free and clear, or refinance an existing loan with added equity. These loans do not report on credit and thus do not affect the debt-to-income ratio. Utilizing our cash-out refinance program allows investors to receive the best possible leverage at the best possible rate.
Cash-Out Refinance Program Details
Rates Starting at 7.49%
Credit Score (FICO):
Minimum Credit Score of 680
DSCR (Debt Service Coverage Ratio):
DSCR Minimum of 1.1
Minimum Seasoning of 6 Months Leased
Max Loan to Value:
Up to 75% LTV
Single Family and 2-4 Unit Multifamily
30-year Fixed Rate Term
No Income Verification
Frequently Asked Questions
1. How is a Cash-Out different from a Rate & Term Refinance?
Essentially the two loans are one in the same. Both programs offer the same process, timeline to close, and requirements, with the purposes being the greatest difference. Rate & Term Refinances are generally used to payoff an existing loan balance, while keeping the balance low and receiving a better rate. Cash-Out Refinances are best utilized when there is existing equity (value) in the property.
2. What can I do with my proceeds?
What can’t you do? Once the loan is complete, the money is yours to spend however you like. Many investors see the opportunity to cash-out of a property as a major win, and choose to acquire more rental units, focus on their next flip or new construction project, or treat themselves to a well earned vacation.
3. Is this any different than a bank loan?
AFC’s Cash-Out Refinance Program follows some of the same procedures and guidelines as your typical bank loan, sharing many of their advantages and few of the disadvantages. Our refinances have a few distinct advantages including but not limited to; the ability to close quickly (within 30 days), our loans being considered “lite doc” with no tax returns or income statements required, and the fact that our loans are completed to an LLC/Corp that will never reflect on an individual’s personal credit.
4. How long are these loans for?
As in our rental program, we have a variety on terms that will fit any investors needs. These range from 5/1, 7/1, and 10/1 ARM’s to a 30 Year Fixed Rate loan. In any case, the amortization schedule (how the loan is priced) is set to 30 years, ensuring the lowest possible payment.