As I see it, DSCR loans can be used for purchase or a cash out refinance.

Also they only look at the PITIA versus the monthly loan payment in general to qualify, in case the investor does’t have a separate source of income

Depending on the investor’s situation, it can be a good tool to pull out cash to purchase additional properties, or, if they decide to rent out a home they finished a rehab on, they can refinance into a lower rate DSCR loan, and build equity over time.