How much equity do I need?

A rate-and-term refinance can work with as little as 3-5% equity. Dropping PMI takes about 20%, and a conventional cash-out requires you to keep 20% (an 80% loan-to-value cap).

Will refinancing hurt my credit?

The hard inquiry causes a small, temporary dip. Rate-shopping multiple lenders within a ~45-day window counts as a single inquiry for scoring.

Refinance an Investment or Rental Property

Wondering about refinancing an investment or rental property? Here is exactly how it works in 2026 — the rules lenders apply, the numbers, and your next move.

The short answer

Refinancing a rental property comes with rate add-ons and tighter LTV limits: rate-and-term up to about 75% LTV and cash-out near 70-75% on conventional financing. Lenders generally require several months of reserves and may count documented rental income toward qualifying. The higher pricing reflects the elevated default risk on non-owner-occupied homes.

What refinance lenders look for

Equity: ~3-5% for a rate-and-term, 20% to drop PMI, and 20% kept for a cash-out (80% LTV cap).
Credit: roughly 620+ for conventional; FHA and VA streamlines do not re-check your score.
Debt-to-income: generally under ~43-50% including the new payment.
Break-even: closing costs divided by monthly savings — refinance only if you will keep the home past it.

Refinance rates and guidelines change. Join the free Refi Rate Guide alerts to hear when the rules or rates that affect this situation move.

Your next steps

Pull your credit, estimate your home's value and current balance to gauge equity, and get quotes from two or three lenders the same day so the comparison is apples-to-apples. Then run the break-even before you commit.

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Frequently Asked Questions

Refinance an Investment or Rental Property — is it possible in 2026?: Refinancing a rental property comes with rate add-ons and tighter LTV limits: rate-and-term up to about 75% LTV and cash-out near 70-75% on conventional financing. Lenders generally require several months of reserves and may count documented rental income toward qualifying. The higher pricing reflects the elevated default risk on non-owner-occupied homes.
How much equity do I need?: A rate-and-term refinance can work with as little as 3-5% equity. Dropping PMI takes about 20%, and a conventional cash-out requires you to keep 20% (an 80% loan-to-value cap).
Will refinancing hurt my credit?: The hard inquiry causes a small, temporary dip. Rate-shopping multiple lenders within a ~45-day window counts as a single inquiry for scoring.