Investors who bought rentals in Bentonville, Rogers, Springdale or Fayetteville before the run-up of the early 2020s are often sitting on equity well beyond their down payment. A DSCR cash-out refinance lets them use it without selling or documenting personal income.
In short: LendingStreet offers DSCR cash-out refinances up to 75% LTV on 1-8 unit rentals across Fayetteville, Bentonville, Rogers, Springdale and the rest of Northwest Arkansas, qualifying on the property's rent instead of tax returns or W-2s. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x, the minimum credit score is 620 and seasoning varies by program.
Corporate growth around Walmart, Tyson Foods and J.B. Hunt, new residents drawn by trails, museums and the university, and limited supply pushed values up across the metro. Rentals bought five or more years ago in Bentonville, Rogers and Centerton have often appreciated substantially.
Rents have risen too, but more slowly. That combination means plenty of equity, but a cash-out at the maximum can push the DSCR close to 1.0x. Choosing the right loan amount matters.
The worked example below shows the trade-off. A long-held Bentonville rental can produce substantial cash even at less than the maximum loan amount, and the lower amount keeps the ratio healthy.
This example is illustrative and not a quote. An investor owns a Bentonville three-bedroom now appraised at $438,000 with a $158,000 balance. It leases for $2,450 a month. Taxes are $300 and insurance $160 a month, and closing costs are about $7,800.
At 75% LTV the new loan is $328,500. Estimated principal and interest is about $2,297, the payment about $2,757 and the DSCR about 0.89x, below the 1.0x standard minimum. At 70% LTV the loan is $306,600, the payment about $2,604 and the DSCR about 0.94x. The investor would still receive about $140,800 in cash at 70%, or could look at a sub-1.0 DSCR program for the larger amount.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| New loan | $328,500 | $306,600 |
| Estimated principal and interest | $2,297 | $2,144 |
| Taxes and insurance | $460 | $460 |
| Total payment | $2,757 | $2,604 |
| DSCR at $2,450 rent | About 0.89x | About 0.94x |
| Estimated cash to investor | $162,700 | $140,800 |
Arkansas uses a 20% assessment ratio, and counties reappraise on a cycle. A rental you have owned for years may still carry a tax bill based on an older value, and the next reappraisal may raise it. State limits on annual increases in assessed value are looser for rental property than for homesteads.
Use the current bill in the ratio, but if your county reappraisal is coming, keep that in mind when you choose the loan amount. Confirm details with the Benton County or Washington County assessor.
Values have risen quickly, and the appraiser will use recent sales. For newer subdivision homes, that is straightforward. For older homes in Fayetteville, Rogers or Springdale, the appraiser may compare against a mix of renovated and unrenovated sales. Give them your improvements list and the sales you think fit best.
If your rental is in a newer subdivision with an HOA, include the HOA dues in your own math. They count in the payment, and some Benton County subdivisions also charge special assessments for amenities or road work.
Most cash-out programs require you to own the property for a period before using the full appraised value; the length varies by program. If you bought recently, ask how purchase and renovation costs factor in, and see our seasoning guide.
If seasoning is not met yet, a rate-and-term refinance or waiting a few months may be the better choice. We can show you both paths.
Investors in Northwest Arkansas commonly use cash-out proceeds in a few ways.
Whatever the use, keep enough reserves after closing to cover several months of payments and a roof or HVAC replacement. Programs may require reserves, and it is good practice regardless.
If you own five or more rentals in the metro, a blanket portfolio loan can cash out across all of them on one closing, qualify on combined cash flow and release individual properties when you sell. See our Arkansas blanket portfolio page.
A blanket loan also simplifies management: one payment, one maturity and one set of loan documents instead of several separate loans.
The maximum is not always the best choice. Pulling every dollar to 75% LTV raises the payment and lowers the ratio, which leaves less room for a vacancy, a roof replacement after a hailstorm or a higher tax bill after reappraisal.
Look at what the cash is for. If it funds the down payment on a rental that will itself cash flow, a higher loan may make sense. If it is mainly reserves, a smaller loan with more cushion may serve you better. Many investors in the region choose a loan amount that keeps the DSCR comfortably above 1.0x.
Gather your current mortgage statement, leases or a rent roll, insurance declarations, the county tax bill, a list of improvements and LLC documents. Complete documents keep the timeline short.
Then use the form below or call (877) 298-1001. We will show you the cash and the ratio at a few loan amounts so you can choose. Our investor loans are business-purpose loans on non-owner-occupied property. For statewide details, see our Arkansas cash-out page.
Tell us how much cash you hope to take out and what it is for, so we can suggest the right structure.
Up to 75% of appraised value minus your payoff and closing costs, as long as the rent covers the new payment at the program minimum. We will show you the numbers at two or three loan amounts.
Values in the region have risen faster than rents. A smaller loan or a sub-1.0 DSCR program are the usual options. We can run the numbers at several loan amounts so you can see where the ratio lands.
No. DSCR cash-out loans qualify on the property's rent. LLC borrowers are standard and the minimum credit score is 620.
Seasoning varies by program. See our seasoning guide or ask us about your timeline. Recent purchases with documented renovation can work on some programs.
It can raise your tax bill and lower your ratio over time. Choose a loan amount with that in mind.
Yes. 1-8 unit rentals qualify using the combined rent. Fourplexes and small buildings near campus are also eligible.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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