El Paso rentals stay leased thanks to Fort Bliss, UTEP, the medical center and cross-border trade. A DSCR cash-out refinance can pull equity from those homes, but El Paso's combined property tax rates usually decide how far the rent stretches.
In short: Yes, LendingStreet finances DSCR cash-out refinances on 1-8 unit rentals in the El Paso area, up to 75% LTV and qualified on the property's rent instead of tax returns. Loans start at $150,000 with a 620 minimum credit score, and the rent must cover the new payment at the program minimum, 1.0x on standard programs. In El Paso, high combined property taxes, Fort Bliss tenant turnover and the appraisal on block-built homes are the local items to check.
You take a new loan larger than your current balance, pay off the existing mortgage and keep the difference. On a DSCR loan the new balance is sized off the appraised value, up to 75% LTV on cash-out, and the borrower signs for the loan personally while the property can stay in an LLC.
Qualification uses the debt service coverage ratio: rent divided by the new monthly payment, including principal, interest, taxes, insurance and any HOA dues. A bigger loan means a bigger payment, so the ratio after the cash-out is the one that must clear 1.0x on standard programs.
The cash can go toward your next acquisition, upgrades across the portfolio, replacing a short-term loan with long-term financing or simply a stronger reserve cushion.
The Northeast and the Far East Side house many Fort Bliss soldiers and families, with newer single-family homes in growing subdivisions. The Westside and Upper Valley carry higher values, and Kern Place and Sunset Heights near UTEP have older homes.
Central El Paso and the Lower Valley offer lower prices. Horizon City, Socorro and Canutillo add suburban rentals in the county.
Rents in El Paso are moderate, and so are prices, which keeps the ratio workable on many single-family homes.
Texas relies on property taxes, and El Paso's combined rates from the county, city, school district, college and hospital district are often cited as among the higher in the state. The homestead exemption applies only to primary residences.
The El Paso Central Appraisal District values property each year. Use the full rate on the appraised value, not the seller's homestead bill.
Some newer subdivisions on the Far East Side and in Horizon City have MUD or similar district taxes. Include them.
Many El Paso homes are concrete block or stucco with flat or low-slope roofs and refrigerated air or evaporative coolers. Appraisers and insurers look at roof condition and water intrusion.
Insurance is moderate compared with coastal Texas, though monsoon storms bring occasional flooding in arroyos and low areas. Check the flood map.
Older Central El Paso homes may have aging plumbing and electrical that appraisers note.
Fort Bliss tenants can end leases early on permanent change of station or deployment orders under federal law. Plan reserves for turnover.
El Paso requires short-term rental registration and hotel occupancy tax, but most cash-out files here are qualified on 12-month leases.
Texas does not allow local rent control. Military housing allowances near Fort Bliss also help support rents for homes in the Northeast and on the East Side.
This example is illustrative and not a quote. An investor owns a house on the Far East Side leased to a military family. It appraises at $260,000 with an existing payoff of $110,000. Rent is $1,850 a month, taxes with no homestead exemption are $520 a month and insurance is $110.
At 75% LTV the new loan is $195,000, which leaves about $85,000 after the $110,000 payoff, before closing costs. Estimated principal and interest on a 30-year schedule is about $1,363, so the total payment is about $1,993 and the DSCR is about 0.93x, below the 1.0x standard minimum. At 65% LTV the loan is $169,000, the payment drops to about $1,812 and the DSCR is about 1.02x, with about $59,000 in cash before closing costs.
Small changes move the ratio. A higher insurance quote, a tax increase or a lower appraised rent each raise the payment's share of rent, so run the numbers with current figures before you ask for a specific cash amount.
| Item | At 75% LTV | At 65% LTV |
|---|---|---|
| Appraised value | $260,000 | $260,000 |
| New loan amount | $195,000 | $169,000 |
| Existing loan payoff | $110,000 | $110,000 |
| Cash before closing costs | $85,000 | $59,000 |
| Estimated principal and interest | About $1,363 | About $1,182 |
| Taxes and insurance | $630 | $630 |
| Total monthly payment | About $1,993 | About $1,812 |
| DSCR at $1,850 rent | About 0.93x | About 1.02x |
Texas has no transfer tax and no mortgage recording tax, and title insurance rates are set by the state. Texas cash-out restrictions apply to homesteads, not investment property.
El Paso title companies can typically close a refinance quickly once the appraisal is in.
If you bought or renovated recently, seasoning matters. Some programs lend on the new appraised value quickly; others look back to your purchase price and improvement receipts for the first months.
A complete file means a faster appraisal order and a clearer answer.
Our investor loans are business-purpose loans on non-owner-occupied property, held personally or in an LLC. Share the property address, value estimate, current payoff and rent, and we will size the loan against the actual El Paso County tax bill and a current insurance quote.
We typically show two or three loan amounts so you can weigh cash against cushion. Use the form below or call (877) 298-1001. Our Texas cash-out refinance page covers statewide rules.
Combined property taxes are high, so the payment at 75% can exceed the rent. A smaller loan often clears the minimum.
Yes. Military leases count like any other, though federal law allows early termination on orders.
You can take a smaller loan, or a sub-1.0 DSCR program may fit on some properties. We will show both options.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Up to 75% of the appraised value, minus your payoff and closing costs. The rent also has to cover the new payment at the program minimum, which can limit the amount.
No, but roof condition and water intrusion matter. Fix obvious issues before the appraisal.
Yes. We finance 1-8 unit rentals across El Paso County and Texas.
Yes. Rentals in Kern Place and Sunset Heights qualify on leases or market rent, with loans starting at $150,000.
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