Owning a non-income producing commercial property can still be a valuable asset, especially when you need access to cash for various expenses. One way to unlock the equity in your property is through a cash-out refinance. In this guide, we’ll explore the steps involved in securing a cash-out refinance for a non-income producing commercial property and how you can use the funds for other financial needs.

Understanding Cash-Out Refinance

A cash-out refinance involves refinancing your existing mortgage for more than you currently owe, allowing you to pocket the difference in cash. This can be a useful financial strategy for property owners looking to tap into the equity they’ve built up over time.

Assessing Your Property’s Value

The first step in pursuing a cash-out refinance is to determine the current value of your non-income producing commercial property. This often requires a professional appraisal to assess the property’s market value accurately. Keep in mind that lenders typically have specific requirements regarding the property’s condition and location, so ensure your property meets their criteria.

Reviewing Your Finances

Lenders will evaluate your financial situation to determine if you qualify for a cash-out refinance. While a non-income producing property may not generate revenue, lenders will still assess your credit score, income, debt-to-income ratio, and other financial factors. Providing documentation such as tax returns, bank statements, and proof of assets can help strengthen your case.

Researching Lenders

Not all lenders offer cash-out refinance options for non-income producing commercial properties, so it’s essential to research and compare different lenders. Look for lenders with experience in commercial real estate financing and inquire about their specific requirements and terms for cash-out refinancing.

Applying for the Loan

Once you’ve chosen a lender, the next step is to submit a loan application. Be prepared to provide detailed information about your property, finances, and intended use of the funds. The lender will review your application and may request additional documentation during the underwriting process.

Using the Funds Wisely

Once your cash-out refinance is approved and funded, you’ll have access to the equity in your property. It’s crucial to use these funds wisely, whether it’s for business expansion, debt consolidation, renovations, or other financial needs. Creating a solid plan for how you’ll use the funds can help you maximize their impact and avoid unnecessary expenses.


A cash-out refinance can be a valuable tool for unlocking the equity in your non-income producing commercial property. By following these steps and working with the right lender, you can access the cash you need to achieve your financial goals and make the most of your property investment. Remember to conduct thorough research, assess your financial situation, and plan wisely to ensure a successful cash-out refinance experience.