Can I refinance a construction loan into a DSCR loan?
Yes — once a home is built, leased and appraised, a DSCR loan is a common way to pay off the construction loan and hold the property long term. The construction loan is interest-only for 12–24 months; the DSCR refinance replaces it with a 30-year loan sized on the finished home's rent. On a Silt DSCR refinance, leverage goes to 75% of appraised value on a cash-out, and the rent must cover the new payment at a 1.00 DSCR or better. Because the appraisal values the completed home, an investor who built well below market value can recover much of the equity they put in. The refinance is a separate approval: the property must meet the rental program's requirements, and construction approval does not guarantee it. Planning the hold from the start — expected rent, insurance and taxes on the finished home — tells you whether the exit works before you break ground.
RELATED QUESTIONS
- How does a construction loan draw schedule work?
- How much will a lender finance on a ground-up construction loan?
- Can I get a construction loan to build a spec home?
Last reviewed 19 October 2026 · Terms are illustrative, not a commitment to lend; every loan is subject to underwriting.