Here is an advantage Fresno owners often overlook: if you bought your rental years ago, your Proposition 13 tax bill is still based on what you paid. That low tax line can make the ratio work on a cash-out that a new buyer of the same house could never qualify for.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Fresno, Clovis and Fresno County up to 75% LTV, qualified on rent, not tax returns. Loans start at $150,000, the new payment must clear the program's DSCR minimum, and LLC owners are standard. Because a refinance does not reset your assessed value in California, long-held rentals often carry lower taxes than recent purchases, but PACE assessments and solar agreements on title usually have to be handled at closing.
Fresno values have climbed substantially over the past decade, and owners who bought before that run-up often have equity sitting idle.
Fresno prices still sit well below coastal California, so cash from one refinance can go a long way as a down payment on another duplex or fourplex here.
Under Proposition 13, a California property is reassessed to its purchase price when it sells, and the base tax is 1% of assessed value plus voter-approved bonds and any special assessments. A refinance is not a sale, so your assessed value and tax bill generally stay where they are. For an owner who bought in 2015, that can mean a tax bill based on a value far below today's appraisal.
Since taxes are part of the payment used to calculate DSCR, a lower tax bill means more of the rent is available to cover principal and interest, and that supports a larger loan.
Compare that with a buyer of the same house today, whose tax bill would be based on the full current price. On a long-held Fresno rental, the difference can be large enough to change how much loan the rent supports.
Many Fresno homes have PACE financing for solar, HVAC, windows or roofs, repaid through the property tax bill. Most loans require PACE balances to be paid off at closing, which reduces your net cash. Leased or financed solar systems may have a recorded notice or agreement that needs to be reviewed or subordinated. Check your tax bill and a preliminary title report early so there are no surprises.
Ask the PACE administrator for a written payoff figure early. Payoff amounts can include fees, and the title company will need the exact number to clear the lien at closing.
This example is illustrative and not a quote. An owner bought a Clovis-area rental years ago. It now appraises at $420,000, with $150,000 left on the mortgage and a $22,000 PACE balance on the tax bill. It leases for $2,450 a month. Because of Proposition 13, taxes are only about $270 a month; insurance is $165.
At 70% LTV the new loan is $294,000. The payment, including estimated principal and interest, taxes and insurance, is about $2,441, a DSCR of about 1.00x. After paying off the mortgage, the PACE balance and about $7,000 in closing costs, the owner nets about $115,000. At 75% LTV the payment would be about $2,584 and the DSCR about 0.95x, below 1.0x, so 70% is the better fit here.
Without the PACE payoff, the owner would net about $22,000 more, which shows why it is worth finding every lien on the tax bill and title report before deciding how much to borrow.
| Sources and uses at 70% LTV | Amount |
|---|---|
| New DSCR loan | $294,000 |
| Pay off existing mortgage | $150,000 |
| Pay off PACE assessment | $22,000 |
| Closing costs (estimate) | $7,000 |
| Estimated net cash to owner | $115,000 |
| DSCR at $2,450 rent | About 1.00x |
Cash-out goes up to 75% LTV on 1-4 units, with lower limits on some 5-8 unit and larger loans. Seasoning, meaning how long you must have owned the property before cash-out uses the appraised value, varies by program. The rent must cover the new payment at the program's minimum, and sub-1.0 DSCR programs exist for some properties.
Like any California rental, the ratio also depends on the insurance quote and any HOA dues. In newer Clovis subdivisions, Mello-Roos charges on the tax bill count in the payment too, even on a long-held property.
California insurance premiums have risen, and some carriers are not writing new policies. Before you refinance, confirm your current landlord policy will renew, and get a quote if you need a new one. A higher premium lowers the ratio and the loan size.
Roof age matters a great deal to California carriers. If your rental's roof is older, replacing it before you shop for coverage may open up more insurance options and a lower premium.
If your rental is covered by the statewide Tenant Protection Act, annual rent increases are capped. That matters for planning: the rent used today is the rent you can count on, and future increases may be limited. Some single-family rentals are exempt with proper notice; confirm with a California attorney.
Changing carriers mid-refinance can also delay closing, so line up the policy before the appraisal is ordered.
With five or more rentals, a blanket portfolio loan can refinance them together on one closing and one payment, qualified on combined cash flow, with release provisions when you sell a property. Older, low-tax rentals can help carry newer ones in the overall ratio.
Send the address, balance, rent, tax bill (including any PACE line) and insurance through the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. We will show the cash available after payoffs.
If you have several Fresno rentals, mention them all, since looking at the whole portfolio can reveal a better option than refinancing one property at a time.
Up to 75% LTV on 1-4 units, with the rent covering the new payment at the program's minimum.
Generally no. A refinance is not a change in ownership, so your Proposition 13 assessed value stays the same.
Usually, yes. Most loans require PACE balances to be paid off at closing.
The agreement may need to be reviewed or subordinated. Send it to us early.
No. The loan qualifies on the property's rent.
Seasoning varies by program; see our cash-out seasoning guide.
Yes. LLC borrowers are standard.
Yes. Five or more can go on a blanket portfolio loan.
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