Frequently Asked Questions

Can I use a bank statement cash-out refinance on my primary home to fund a DSCR rental down payment?

Yes. This is a structured two-transaction strategy that Mbanc executes for self-employed tradespeople regularly. The bank statement cash-out refinance qualifies on your deposit income. The DSCR rental qualifies on the property’s rental income. The two products operate independently.

How does Illinois’s high property tax rate affect my DSCR rental investment?

Illinois property taxes — often 2.5 to 3 percent or more of assessed value in Cook and DuPage Counties — significantly increase the PITIA denominator in the DSCR calculation, compressing ratios that would be more favorable in lower-tax states. Multi-unit properties that generate higher combined rental income per dollar of purchase price often produce better DSCR outcomes in Illinois than single-family properties.

Does doing a cash-out refinance on my primary home affect my ability to get a DSCR loan?

Generally no. A DSCR loan does not use your personal income or DTI — it qualifies on the rental property’s income. The cash-out refinance increases your primary home’s mortgage payment but does not enter the DSCR underwriting for the investment property.

Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

About the Author

Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.

Contact: sales@mbanc.com | mbanc.com/non-qm-trades