Lancaster County landlords tend to hold for a long time. Many own rentals that are paid down or free and clear, and a DSCR cash-out refinance lets them use that equity without proving personal income.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Lancaster and across Lancaster County up to 75% LTV, qualified on the property's rent instead of tax returns. The new full payment needs to clear a 1.0x standard minimum DSCR, the minimum credit score is 620 and LLC owners are standard. Seasoning before cash-out varies by program.
Typical borrowers are long-time owners of single-family rentals in Manheim Township, Lancaster Township and the boroughs, owners of rowhomes in the city bought years ago, and investors who renovated a property and want their capital back for the next deal. The cash often goes to a down payment on another rental, a rehab, paying off a higher-cost loan or building reserves.
The loan qualifies on the property, so retirees and business owners whose tax returns show little income are not penalized.
The new loan can be up to 75% of the appraised value on standard programs, sometimes less on 5-8 unit buildings or large balances, which varies by program. It pays off any existing mortgage and closing costs, and the remainder is yours. The new payment, including county, municipal and school taxes and insurance, must be covered by the rent at the program's minimum ratio.
On a free-and-clear property, the entire loan net of costs comes to you, which is why some owners choose a smaller loan than the maximum to keep the payment comfortable.
Remember that the appraiser, not an online estimate, sets the value. In Lancaster County the appraiser will compare your rental with recent sales of similar homes nearby, and condition matters: updated kitchens, baths, roofs and mechanicals help the number, while deferred maintenance hurts it.
This example is illustrative and not a quote. An investor owns a single-family rental in Manheim Township worth $420,000 and owes $120,000. It leases for $2,550 a month; taxes are about $520 a month and insurance $115. Closing costs are estimated at $8,500.
At 75% LTV, the new loan is $315,000 and the investor receives about $186,500 after payoff and costs. Estimated principal and interest is about $2,176, the total payment about $2,811 and the DSCR about 0.91x, below the standard minimum. At 65% LTV the loan is $273,000, cash out is about $144,500, the payment is about $2,521 and the DSCR rises to about 1.01x, which clears 1.0x.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| New loan | $315,000 | $273,000 |
| Existing payoff | $120,000 | $120,000 |
| Estimated cash to investor | $186,500 | $144,500 |
| Estimated principal and interest | $2,176 | $1,886 |
| Total monthly payment | $2,811 | $2,521 |
| DSCR at $2,550 rent | About 0.91x | About 1.01x |
In suburban Lancaster County, school taxes on a single-family rental can be a large monthly cost, and they do not go down when you add a mortgage. That is why the example works better at a lower LTV. If the ratio is tight, you can take less cash, look at a sub-1.0 DSCR program where available, or wait until a lease renewal brings the rent up.
Use the actual current bills. If the school district has appealed your assessment or a county reassessment is underway, use the new number.
City rowhomes often have a different profile: lower values, so less cash available, but rents that are high relative to price. On those, the ratio is usually less of a limit than the dollar amount, and our $150,000 minimum loan size can matter on lower-value homes.
A refinance does not trigger Pennsylvania realty transfer tax, because the deed is not changing hands, and the state has no mortgage tax. Expect an appraisal, title insurance, settlement and recording fees, and initial escrow deposits for taxes and insurance.
If the property is in your personal name and you want the loan in an LLC, the deed transfer to the LLC may or may not be subject to transfer tax depending on how the transfer is structured. Ask your attorney or title company before you move the deed.
If you bought recently and renovated, some programs let you use the new appraised value for cash-out after a short ownership period; others cap the loan based on your cost until more time passes. Tell us your purchase date, price and rehab spending at the start, and read our seasoning guide for the common rules.
Lenders want to see that the property is legally rented. In the City of Lancaster that means a current rental permit and inspection, and some boroughs and townships have their own registration. Have current leases in the borrower's name; if the loan is closing in an LLC, the LLC should be the landlord on the lease.
Owners with five or more Lancaster County rentals may prefer a blanket portfolio loan, which refinances them under one loan, one closing and one payment, qualified on combined cash flow, with release provisions if you sell a property later.
Properties can be in different municipalities and school districts within the county, and on some programs in more than one state.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, estimated value, payoff, lease and tax bills through the form below, or call (877) 298-1001. For statewide context, see our Pennsylvania cash-out refinance page.
Up to 75% of the appraised value on standard programs, less payoff and closing costs, as long as the rent covers the new payment at the program minimum.
No. A refinance does not transfer the deed, so realty transfer tax does not apply. Moving the deed into an LLC is a separate question.
Yes. The loan, net of closing costs, comes to you, subject to LTV and DSCR limits.
Often because of school taxes. They are a large part of the payment in many Lancaster County school districts.
If the municipality requires rental registration or a permit, we will want to see that the property is legally rented.
Seasoning varies by program. Some use the new appraised value after a short ownership period; others limit the loan to cost for longer.
Yes. The loan qualifies on the combined rent of all units, and each unit should be legally rented under the city's rental program.
No. The loan qualifies on the property's rent, with a 620 minimum credit score.
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