Some of the largest untapped equity in Lane County sits in rentals near campus that their owners bought decades ago. A DSCR cash-out refinance lets those owners borrow against that equity based on the rent the property earns today, without selling and without personal income paperwork.
In short: LendingStreet offers DSCR cash-out refinancing on 1-8 unit rentals in Eugene, Springfield and Lane County up to 75% LTV, qualified on the property's rent instead of your W-2s or tax returns. The standard minimum DSCR is 1.0x at the new payment, the minimum credit score is 620 and loans start at $150,000. Seasoning requirements vary by program.
Three kinds of owners come up again and again. Long-time landlords near the University of Oregon who own houses or small buildings free and clear or nearly so. Investors who bought in Bethel, Santa Clara or Springfield in the early 2010s and have seen values climb. And owners who added an ADU or converted a house under Oregon's middle housing rules and now have more rent and more value than when they bought.
What they share is a property worth far more than its loan. The question is how much of that equity the rent can support.
Oregon's rent stabilization limits annual increases for most units older than 15 years. For a cash-out, that means the rent you have today is close to the rent you will have next year, especially on long-term tenancies that are well below market. The new payment needs to work on today's leases.
That is not necessarily bad news. Long-term tenants mean low turnover and steady income, and some programs use market rent from the appraisal rather than the in-place lease. Bring your leases and ask how your program treats below-market rents before you choose a loan amount.
This example is illustrative and not a quote. An owner bought a triplex in South University many years ago. It now appraises at $690,000, each unit rents for about $1,325 ($3,975 a month in total) and $165,000 remains on the loan. Taxes are about $508 a month and insurance $165.
At 75% LTV the new loan is $517,500 and the payment is about $4,116, for a DSCR of about 0.97x, which misses 1.0x. At 70% the ratio is about 1.02x, just over the line. At 65% LTV, a loan of $448,500, DSCR is about 1.09x and the owner receives about $283,500 before closing costs. On this building, the rent sets the cash-out, not the 75% program maximum.
| Item | 75% LTV | 70% LTV | 65% LTV |
|---|---|---|---|
| New loan | $517,500 | $483,000 | $448,500 |
| Cash before closing costs | $352,500 | $318,000 | $283,500 |
| Estimated principal and interest | $3,443 | $3,213 | $2,984 |
| Total monthly payment | $4,116 | $3,887 | $3,657 |
| DSCR at $3,975 rent | About 0.97x | About 1.02x | About 1.09x |
Measure 50 assessed values are not reset by a sale, and a refinance is not a sale in the first place. Your current Lane County tax statement is the right number for the DSCR calculation. The exception is recent improvement work: if you added an ADU, a unit or a large addition, the assessor may add value for it, so check whether the latest statement already reflects that work.
Seasoning is how long you have owned the property before a cash-out, and it matters most for investors who bought below market or added units soon after buying. Requirements vary by program, and some programs cap the loan based on your purchase price for a period after you buy. If you recently bought, renovated and leased a property, our seasoning guide explains the options, and a rate-and-term refinance may be a faster first step.
The money is yours to use, but the payment lasts for years, so plan the use before you close. In a market where prices are high relative to rents, the most durable uses are the ones that add rent or reduce risk: another unit on a lot you own, a building with room to grow rents as units turn over, or repairs that keep a long-term tenant in place. Using cash-out for a purchase that does not cash flow on its own can leave two properties under strain instead of one.
Appraisers here weigh condition heavily. Original knob-and-tube wiring, an undocumented oil tank or unpermitted basement units can all lower value or the rent the appraisal will credit. Gather permits, tank decommissioning paperwork and recent repair invoices before the appraisal is ordered. Make sure every unit is accessible on the appraisal date; an appraiser who cannot see a unit may have to make assumptions that work against you. For student rentals, a rent roll showing by-the-bedroom leases helps the appraiser reconcile your actual income with market rent.
Owners with five or more Eugene rentals can pull equity from all of them in one closing with a blanket portfolio loan, qualified on combined cash flow. Duplexes to fourplexes qualify on combined rent, and 5-8 unit buildings use the same approach with maximum LTV that can be lower. Send the address, estimated value, loan balance, rents and your cash goal through the form below, or call (877) 298-1001. For statewide terms, see our Oregon cash-out page.
Up to 75% of appraised value, minus your existing loan and costs, as long as the rent covers the new payment at the program minimum. In Eugene, the rent often limits the loan before the 75% cap does.
No. DSCR cash-out loans qualify on the property's rent.
No. A refinance is not a sale, and Measure 50 values are not reset by a sale either. Recent improvements can add value.
It can lower the loan amount, since Oregon caps increases on existing tenancies. Some programs use market rent from the appraisal. Ask how your program treats it.
It varies by program. Some programs use the purchase price instead of the new value for a period after you buy.
Yes, if the ADU is permitted. Both units' rent can count toward the ratio.
Yes. Many owners use cash-out proceeds as equity for a construction or middle housing project.
Yes. Five or more properties can be refinanced together with a blanket portfolio loan.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.