Lehigh Valley rents have climbed as warehouse jobs along I-78 and New York and New Jersey commuters filled Allentown, Bethlehem and Easton. If you own rowhouses or converted twins there, a DSCR cash-out refinance can turn that rent growth into cash.
In short: Yes. LendingStreet can refinance an Allentown rental with 1-8 units and pay you cash up to 75% LTV, qualifying on the property's rent with no tax returns required. Loans start at $150,000, the minimum credit score is 620 and standard programs need a DSCR of at least 1.0x after the cash-out. In Allentown, the city's rental licensing and inspections, Lehigh County's assessment base year and the condition of older brick housing are the local items to check.
With a DSCR cash-out refinance, a new loan of up to 75% of the appraised value pays off the old one, and the remaining equity comes to you as cash. Income documents are not part of the file; the rent is.
Underwriting divides rent by the new payment, counting principal, interest, taxes, insurance and any association dues. Because cash-out raises the balance, the ratio drops, and it has to stay at or above the program minimum, 1.0x on standard programs.
Investors use the proceeds to buy another property, fund repairs elsewhere, retire a short-term rehab loan or set aside reserves. The cash comes at closing in one lump sum.
Center City, the West End, the East Side and the South Side are full of brick rowhouses, twins and larger homes that were converted into two to four apartments decades ago. Those conversions are popular with DSCR investors because the combined rent of several units supports the payment.
Bethlehem and Easton in Northampton County offer similar housing, with Lehigh University and Lafayette College adding student and staff demand. Whitehall, Emmaus, Catasauqua and Fullerton carry more single-family rentals and newer homes.
Rents in the Lehigh Valley have risen as households priced out of northern New Jersey and the New York area moved west along I-78, which has lifted values on many older buildings.
Pennsylvania has no statewide reassessment schedule, and many counties go years between countywide reassessments. Assessed values can drift far from market value, and the county, municipality and school district each set their own millage on that assessment.
For a cash-out, the school district tax is often the largest piece of the bill. Use the actual current bills, not a percentage of value, and check whether the property is in Allentown School District, Parkland, East Penn or another district, since the difference can be meaningful.
Many Allentown rentals are over 100 years old. Appraisers look at condition, separate utilities, egress and whether the unit count matches what the city recognizes. A converted building with more units than the zoning or rental license allows can be appraised at a lower unit count.
Pre-1978 housing carries lead paint disclosure obligations, and older roofs, chimneys and party walls in rowhouses can raise insurance questions. Get a current quote for the whole building.
The City of Allentown requires rental units to be licensed and periodically inspected, and Bethlehem and Easton run their own rental programs. Keep licenses current and match the number of licensed units to what you are refinancing, since that is what the appraiser and underwriter will look for.
Short-term rentals are a small slice of the Lehigh Valley market. Most cash-out loans here are underwritten on 12-month leases.
If you plan to add a unit, get city approval and a license first; an unapproved unit usually will not count in the appraisal or the rent.
This example is illustrative and not a quote. An investor owns a West End twin converted to two apartments. It appraises at $300,000 and the existing payoff is $120,000. The two units rent for $2,500 a month combined, taxes run $450 a month and insurance is $140.
At 75% LTV the new loan is $225,000, which leaves about $105,000 after the $120,000 payoff, before closing costs. Estimated principal and interest on a 30-year schedule is about $1,573, so the total payment is about $2,163 and the DSCR is about 1.16x, above the 1.0x standard minimum.
On many programs the appraiser's market rent estimate is weighed against the lease, so a lease well above market may not count in full. Use current tax and insurance figures, not last year's, when you test your own numbers.
| Item | At 75% LTV |
|---|---|
| Appraised value | $300,000 |
| New loan amount | $225,000 |
| Existing loan payoff | $120,000 |
| Cash before closing costs | $105,000 |
| Estimated principal and interest | About $1,573 |
| Taxes and insurance | $590 |
| Total monthly payment | About $2,163 |
| DSCR at $2,500 rent | About 1.16x |
Pennsylvania's realty transfer tax applies to deed transfers, so a straight refinance generally does not trigger it. Title insurance in Pennsylvania follows filed rates, and there may be a reissue credit if the prior policy is recent. Ask your title company for the estimate early.
Seasoning rules vary by program: some allow a cash-out soon after purchase, while others want several months of ownership or limit the loan to cost plus documented improvements.
Having these ready shortens the time from application to closing.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, estimated value, payoff, rent and how much cash you want, and we will run the ratio at a few loan amounts using realistic taxes and insurance for Lehigh County.
You will get options showing the cash available at each loan size, including sub-1.0 DSCR programs where they fit. Call (877) 298-1001 or use the form below to get a quote. For statewide rules, see our Pennsylvania cash-out page.
Yes, if the three units are legal and licensed. The loan qualifies on the combined rent, and the appraisal will reflect the unit count the city recognizes.
Pennsylvania counties reassess infrequently, so the assessed value can be far from today's market value. Underwriting uses the actual bills.
No. The loan qualifies on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
Possibly. A smaller loan often clears 1.0x, and sub-1.0 DSCR programs exist for some properties.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. Licensed units show the property is a legal rental with the unit count you claim, and missing licenses can slow the file.
Yes. We finance 1-8 unit rentals across the Lehigh Valley and Pennsylvania, with loans starting at $150,000.
Yes. The school district matters only through the tax bill and rent levels. Use the actual bills when you run the numbers.
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