Hollywood · DSCR purchases and cash-out refinances
DSCR Loans for Hollywood Investment Properties
Financing for Hollywood rentals that qualifies on the property’s rent, with a close look at the move many local landlords are weighing now: pulling equity out of a rental bought years ago.
Hollywood DSCR Loan Overview
If you are an investor looking for a DSCR loan in Hollywood, this financing option allows you to qualify based on property cash flow rather than personal income.
Hollywood has a lot of quiet landlords. Owners who bought a house or a small duplex east of I-95 ten years ago, rented it out, and watched it roughly double in value. Many of those owners want to use that equity for a second property, a renovation, or a business, without handing a bank their tax returns. A DSCR cash-out refinance is built for that.
The same loan finances new purchases: houses in Hollywood Lakes and Park East, condos on the beach and along Hollywood Boulevard, and the 1950s duplexes scattered through the older grid. On Mortgage compares DSCR lenders for both. Buying a home to live in? The Hollywood mortgage rates page has owner-occupied pricing.
Why Hollywood Is a Strong Market for DSCR Loans (2025 to 2026)
Renter Occupancy
About 43% of Hollywood households rent. Demand comes from Memorial Regional Hospital staff, beach and casino hospitality workers, and commuters to both Miami and Fort Lauderdale who like being in between.
Accurate Rent Levels
Early 2026 listings averaged about $2,179 overall, near $1,890 for one bedroom and $2,418 for two. Three-bedroom houses east of I-95 commonly rent near $2,900 to $3,200, a range we use below.
Income Profile and Local Demand
Census estimates put median household income near $65,359. That supports Hollywood’s moderate rents comfortably, and the city’s location between two job centers keeps vacancy short.
Understanding DSCR Loans for Hollywood Investors
The ratio is monthly rent divided by PITIA, which is principal, interest, taxes, insurance and association dues. A cash-out refinance raises the loan and the payment, so it lowers the ratio, and that is the constraint on how much equity you can take.
Lenders set two limits on a DSCR cash-out. The first is loan-to-value, commonly 70% to 75% of the appraised value for a ratio of 1.00 or better, and lower for ratios below it. The second is the ratio itself: many lenders require 1.00 or more for any cash-out, while some allow less with a reduced maximum. Whichever limit is tighter sets the loan.
Most lenders also want you on title for at least six months before a cash-out, and use the appraised value from that point on. If you bought for cash recently and want your money back, ask about delayed financing instead, which follows different rules.
A Hollywood DSCR Example
A three-bedroom house east of I-95 bought in 2016 with a $224,000 loan at 4%. It now appraises at $520,000 and rents for $2,900. Here is the existing loan beside three cash-out refinances at the illustrative DSCR rate.
| Value $520,000, rent $2,900 | Keep the 2016 loan | 60% cash-out | 70% cash-out | 75% cash-out |
|---|---|---|---|---|
| Loan balance | $176,476 | $312,000 | $364,000 | $390,000 |
| Cash to you, after about 2.5% costs | None | $127,724 | $178,424 | $203,774 |
| Principal and interest | $1,069 | $2,235 | $2,608 | $2,794 |
| PITIA | $1,909 | $3,075 | $3,447 | $3,634 |
| DSCR | 1.52 | 0.94 | 0.84 | 0.80 |
Tax is set at 80% of what a new buyer would pay at Broward’s average millage, to reflect an assessment that has not reset since 2016; your actual bill will differ. Insurance is a county landlord estimate. The 2016 balance is calculated from the original loan after ten years of payments. Rate 7.750%, for illustration only (today’s owner-occupied par plus a point).
The old 4% loan covers easily. Every cash-out version drops below 1.00, because the new loan is larger and costs nearly twice the rate. At this rate, the largest loan that keeps the ratio at 1.00 is about $287,602, which would put only about $103,936 in your pocket. To pull more, you need a lender that allows cash-out below 1.00, usually at a lower LTV and a higher rate, or a second-lien option that leaves the 4% first mortgage alone. We price all three.
Hollywood DSCR Calculator
- Loan amount
- $345,000
- Principal and interest
- $2,472
- Full payment (PITIA)
- $3,306
- Rent needed for 1.00
- $3,306
- Rent needed for 1.25
- $4,133
Preset to a $460,000 purchase of a three-bedroom house at $2,900 rent. For a refinance, enter the appraised value as the price and set the down payment to the equity you will leave in.
Today’s Broward County ratesHow DSCR loans workMore mortgage calculators
DSCR Financing for Investment Properties in Hollywood
Whether you are buying or refinancing in Hollywood, the DSCR lenders we compare generally look for:
- A ratio of 1.00 or better for the best terms, or extra equity if lower
- Credit from the mid-600s, with better pricing at higher scores
- Six months on title before a cash-out refinance
- A current lease or a rent schedule from the appraiser
- Reserves, which cash-out proceeds can often satisfy
Flood zones matter in Hollywood, especially near the Intracoastal and in Hollywood Lakes. A required flood policy is part of PITIA. Talk with our Hollywood mortgage broker team if you are also financing a home for yourself.
DSCR Loan FAQs for Hollywood Investors
What is a DSCR loan?
A mortgage on a rental that is qualified by comparing the property’s rent with its total monthly payment. It does not rely on W-2s, pay stubs or tax returns.
How much cash can I take out of a Hollywood rental?
Usually up to 70% to 75% of the appraised value, minus your current balance and costs, provided the new payment still meets the lender’s ratio. The ratio often limits the cash before the LTV does.
Will refinancing raise my property taxes?
No. In Florida, a refinance does not trigger reassessment. A sale or a change of ownership does, so moving the property into a new LLC can matter; ask your attorney first.
Can I do a cash-out if my ratio will be below 1.00?
Some lenders allow it, generally at a lower maximum LTV and a higher rate. Others require 1.00 or higher for any cash-out.
How long must I own the property first?
Commonly six months on title for a cash-out refinance. A recent cash purchase may qualify sooner under delayed financing rules.
Can I use the cash to buy another property?
Yes. Proceeds from a DSCR cash-out are yours to use, and they can also count toward reserves on your next purchase.
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See what your Hollywood rental can unlock
Send the address, your current loan and the lease. On Mortgage will estimate the value, size the cash-out against the ratio and compare DSCR lenders and second-lien options.