Can I refinance my investment property as a commercial loan?

Yes, if the property has 5+ residential units or is non-residential commercial (office, retail, industrial, mixed-use). Commercial refi on investor-held property uses asset-based underwriting (property NOI alone, or NOI + sponsor financials). Single-family and 1–4 unit residential investment property typically refinances under residential mortgage products (not commercial CRE refi).

What's the LTV on an investor commercial property refinance?

75% LTV cap on conventional and DSCR loans for rate-and-term; 70–75% for cash-out. Agency multifamily can reach 80% (rate-and-term) and 75% (cash-out). Life co caps lower (65–70%) on trophy assets. Cash-out caps are 5% lower than rate-and-term across most products.

What DSCR do lenders require on investment property refinance?

1.20x DSCR is the standard floor on conventional bank and DSCR loan refi. Agency multifamily requires 1.25x. Life co requires 1.30x+. DSCR is calculated on trailing actual NOI, not projected — properties with weak recent NOI face refi limitations even at high LTV.

How long does it take to refinance an investment property?

Typical timelines: conventional bank 60–90 days, DSCR loan 30–60 days (faster due to streamlined underwriting), agency multifamily 60–90 days, life co 90–120 days, CMBS 90–120 days. The biggest timing variable is the existing lender's payoff timing (typically 30 days notice).

Can I cash out on an investment property refinance?

Yes. Investor cash-out refi typically caps at 70–75% LTV (5% lower than rate-and-term). DSCR must support the higher debt service at trailing NOI. Cash-out proceeds are not taxable income (debt, not income). For full cash-out mechanics, see the cash-out refinance investment property guide.

Refinance Investment Property: 2026 Guide for CRE Investors

When investors refinance investment property — commercial real estate held in an LLC or other investor entity — the rules are structurally different from owner-occupied CRE refi in ways most generic content doesn’t acknowledge. The borrower doesn’t qualify for SBA 504 (no owner-occupancy). Personal-income DSCR is irrelevant — the property’s rent roll is the underwriting basis. Recourse vs. non-recourse considerations differ. And the LTV caps are tighter than on owner-occupied.

This guide is specifically for investors refinancing commercial property held in LLC or other investor entities — apartment buildings, office, retail, industrial, mixed-use, or other CRE held as investment rather than business operations. For the broader CRE refi landscape, see the commercial real estate refinance guide. For owner-occupied refi (business operates the building), see the SBA 504 refinance guide.

What Makes Investor CRE Refi Different

Three structural differences from owner-occupied refi:

1. No SBA Path

SBA 504 and 7(a) both require 51%+ owner-occupancy. Investor-held CRE (tenant-leased, no owner operation) is structurally ineligible. The entire SBA refinance pathway is closed for investors.

2. Asset-Based Underwriting

Owner-occupied refi uses global cash flow — business EBITDA + personal guarantor capacity + affiliated entities. Investor refi uses property NOI alone (asset-based) on most products, with personal financials reviewed but secondary.

This is why DSCR loans exist as a category: full asset-based underwriting that doesn’t require personal income documentation. Investors with thin personal income relative to portfolio (common — most CRE income flows through entities) can still qualify.

3. Tighter LTV + DSCR Floors

Metric	Owner-Occupied Refi	Investor Refi
Max LTV (rate-and-term)	75–80% (SBA 504 effectively 90%)	75% conventional, 80% agency
Max LTV (cash-out)	70–75%	70–75%
DSCR floor	1.20x global cash flow	1.20–1.25x property NOI only
Recourse	Typically required (SBA always)	Negotiable above $5M deal size

The asset-based underwriting on investor refi means weaker properties get sized down by DSCR, while stronger properties hit the LTV ceiling.

Loan Products for Investor CRE Refi

Four product categories actively refi investor CRE in 2026:

Conventional Bank Refinance

The most common investor refi path. Banks underwrite the property’s NOI + sponsor track record + entity financials. Typical terms:

75% LTV cap (rate-and-term), 70–75% (cash-out)
5–10 year balloon with 25-year amortization
Recourse typical under $5M; non-recourse possible above $5M
Current rate range: 7.0–8.0% as of May 2026 — verify current quotes with lenders
DSCR floor: 1.20–1.25x

Best fit: investors with strong deposit relationships at a bank, sub-$10M deals, properties with clean trailing NOI.

DSCR Loans

Full asset-based underwriting. The lender qualifies the property’s DSCR alone; personal income docs are not required. Typical terms:

75% LTV cap (rate-and-term + cash-out)
30-year amortization (longer than conventional)
Recourse typical
Current rate range: 7.5–9.0% as of May 2026 — verify current quotes with lenders
DSCR floor: 1.20x
No personal income docs, no tax returns required

Best fit: investors with multiple properties, thin reported personal income, or borrowers buying CRE as an extension of W-2 earnings without showing full borrowing capacity on personal financials. Rate premium of 50–100 bps above conventional reflects the streamlined underwriting.

Agency Multifamily (Fannie Mae / Freddie Mac / HUD)

Specifically for multifamily 5+ units. Non-recourse, fixed-rate, longest terms in the market. Typical terms:

80% LTV cap (rate-and-term), 75% (cash-out)
10–25 year fixed (Fannie/Freddie) or 30+ year (HUD)
Non-recourse
Current rate range: 5.4–6.5% as of May 2026 — verify current quotes with lenders
DSCR floor: 1.25x

Best fit: stabilized multifamily refi at any deal size. Often the lowest absolute rate available for any CRE refi. For full multifamily financing context, see the multifamily financing guide.

Life Insurance Company Refinance

Trophy assets only — typically $20M+ deal sizes, institutional-quality property + sponsor. Typical terms:

65–70% LTV cap (cash-out as low as 60%)
10–25 year fixed
Non-recourse
Current rate range: 5.5–6.5% as of May 2026 — verify current quotes with lenders
DSCR floor: 1.30x+
Most conservative underwriting

Best fit: institutional sponsors with portfolio properties seeking lowest possible permanent rate.

Worked Example: Investor Multifamily Refi

A 50-unit apartment building owned by an investor for 4 years.

Metric	Value
Current property value (recent appraisal)	$7,500,000
Existing loan balance	$4,500,000 (60% LTV, 5-year balloon maturing 2027)
Trailing 12-month NOI	$600,000
Existing rate	5.25% (originated 2021)
Existing monthly debt service	$26,940

Path A: Conventional Bank Refi

New loan at 75% LTV = $5,625,000
Rate at 7.5% / 25-yr amort = $41,571/month
DSCR at $600K NOI = 1.20x ✓
Net cash-out: $5,625,000 − $4,500,000 − $90,000 (closing) = $1,035,000

Path B: Agency Multifamily Refi (Fannie Mae DUS)

New loan at 75% LTV = $5,625,000
Rate at 6.0% / 30-yr amort = $33,727/month
DSCR at $600K NOI = 1.48x ✓ (much stronger)
Non-recourse
Net cash-out: $5,625,000 − $4,500,000 − $112,500 (slightly higher closing) = $1,012,500

Comparison

Metric	Conventional	Agency
Monthly debt service	$41,571	$33,727
Annual debt service savings (agency wins)	—	$94,128
Recourse	Yes	No
Net cash-out	$1,035K	$1,013K

Agency wins decisively on this deal — non-recourse + $94K/year of additional cash flow + comparable cash-out. The agency path is the clear answer for multifamily. The conventional path would only win if the borrower wanted faster execution (45–60 days vs. 90 days for agency).

This is why the lender-category decision matters more than the rate-shopping decision on investor refi. For a full lender comparison, see the best commercial property refinance lenders guide.

Investor Refi Rate Ranges (May 2026)

Rates as of May 2026 — verify current quotes with lenders before making decisions.

Product	Rate (Rate-and-Term)	Rate (Cash-Out)	Notes
Conventional bank	7.0–7.5%	7.25–7.75%	Cash-out premium of 25 bps typical
DSCR loan	7.5–8.5%	7.75–9.0%	Higher rate, no personal income docs
Agency multifamily	5.4–6.0%	5.75–6.5%	Non-recourse, multifamily only
Life co (trophy)	5.5–6.0%	5.75–6.5%	$20M+ deal, institutional
CMBS	6.5–7.5%	6.75–7.75%	Non-recourse, large deals, defeasance prepayment

For monthly-refreshed rate detail, see the commercial property refinance rates guide. For broader rate context, see the commercial real estate loan rates guide.

Rental Property Refinance Requirements

Six dimensions evaluated on investor refi:

Property NOI (trailing) — 12–24 months actual operating performance. Underwriting NOI may exclude one-time income or include adjustments for normalized expenses.
DSCR floor — 1.20–1.30x depending on product
LTV cap — 75% conventional/DSCR, 80% agency multifamily, 65–70% life co
Sponsor experience — Required documentation of prior CRE ownership + management; thinner experience caps the LTV
Entity structure — Loans typically made to the LLC owning the property, with personal guaranty from principal sponsors (unless non-recourse product)
Property condition — Updated appraisal + property inspection; environmental Phase I often required

For the broader CRE loan requirements context, see the commercial real estate loan requirements guide.

Common Investor Refi Mistakes

Five mistakes:

Defaulting to conventional bank when agency multifamily would deliver dramatically lower rates. Investors with stabilized multifamily 5+ units should always evaluate agency first — the non-recourse + lower rate combination is typically dominant.
Missing DSCR loan options on investors with thin reported personal income. W-2 borrowers with substantial CRE portfolios often qualify for more loan via DSCR loan than via conventional underwriting.
Sizing cash-out at LTV cap without checking DSCR. Investor refi DSCR is binding more often than LTV on cash-out deals. Run DSCR math before LTV math.
Underestimating recourse vs. non-recourse value. Non-recourse refi (agency, life co, CMBS) eliminates personal asset exposure if the property defaults. On portfolio investors, the non-recourse benefit is worth substantial rate premium.
Not coordinating refi timing with existing loan balloon. Last-minute refi pressure (60–90 days before balloon) creates lender leverage against the borrower. Start 6+ months before balloon.

Frequently Asked Questions

A DSCR loan is a commercial CRE loan that underwrites entirely on the property’s debt-service coverage ratio (NOI ÷ debt service). Personal income documentation is not required. Useful for investors with: multiple CRE properties, thin reported personal income, W-2 income that doesn’t show full borrowing capacity, or portfolio holdings where each property qualifies independently. Rate premium of 50–100 bps above conventional reflects the streamlined underwriting.

Non-recourse refi (agency multifamily, life co, CMBS) eliminates personal asset exposure if the property defaults. The trade-off: typically lower LTV (65–75% vs. 75–80% recourse) + sometimes higher rate. For portfolio investors with substantial personal wealth, the non-recourse benefit is worth meaningful rate premium. For sponsors with most net worth tied up in the property, non-recourse may not be worth the lower LTV.

The Bottom Line

Investor CRE refinance is structurally different from owner-occupied refi: no SBA path, asset-based DSCR underwriting on property NOI alone, tighter LTV caps. Four product paths dominate: conventional bank (most common), DSCR loans (streamlined for thin-income investors), agency multifamily (5+ units, non-recourse, lowest rates), and life co (trophy assets only).

For multifamily refi, agency typically wins decisively on the combination of non-recourse + lowest rate. For non-multifamily investor CRE, the choice between conventional and DSCR comes down to the borrower’s personal income profile and underwriting preferences.

Submit Your Deal for Review

For a competitive quote on an investor CRE refinance, submit your deal for review — or explore AVANA’s conventional loan program and multi-family financing directly.