Portland, Salem, Eugene and Bend have all seen strong appreciation, and many Oregon investors hold equity they can now use. A DSCR cash-out refinance does it on the property's rent rather than your personal income.
In short: Yes, LendingStreet finances DSCR cash-out refinances on 1 to 8 unit investment property in Oregon, up to 75% LTV, qualifying on the property's rent rather than your tax returns. The rent has to cover the new payment, including taxes and insurance, at the program minimum, which is 1.0x on standard programs, and the minimum credit score is 620. Oregon's statewide rent stabilization law and wildfire-driven insurance costs are the two local factors that most often shape how much cash a rental can support.
The new loan is sized off a fresh appraisal, up to 75% loan-to-value on a cash-out. It pays off your existing loan, and the remaining proceeds, after closing costs, are yours to use. The property can be any 1 to 8 unit residential rental, and LLC borrowers are standard.
Instead of your personal income, the lender looks at the property's debt service coverage ratio: rent divided by the full new payment, including taxes, insurance and HOA dues. Cash-out raises the balance, so it lowers the ratio. Standard programs need 1.0x, and sub-1.0 programs exist for files that fall just short.
The minimum credit score is 620, 30-year terms are available, and the appraisal sets both the value and, on most files, the market rent used in the ratio.
Portland and its suburbs, including Beaverton, Hillsboro, Gresham and Vancouver-adjacent neighborhoods, hold most of the state's rental housing, from bungalows and older plexes on the east side to newer townhomes. Salem has a steady market tied to state government, Eugene has student and family rentals near the University of Oregon, and Bend and Medford have higher-priced homes and seasonal demand.
Prices in many Oregon markets rose faster than rents, so the ratio can be tighter than the equity suggests. That makes it worth running the numbers at a few loan amounts.
Oregon generally does not allow local real estate transfer taxes, with Washington County's long-standing tax the main exception, and it applies to sales rather than refinances. There is no state mortgage tax. Refinance costs are mainly title insurance, county recording fees, escrow, the appraisal and lender costs.
Escrow companies typically handle closings in Oregon. Ask for an estimate early so you know the cash-to-you figure.
Under Measure 50, Oregon taxes property on an assessed value that generally can rise only a limited amount each year, separate from market value. The assessed value does not reset when a property sells, so two similar homes can carry very different bills depending on when they were built or improved.
A refinance does not change the assessed value. Underwriting uses the current bill, which in many established Portland neighborhoods is moderate relative to value. New construction and major remodels can carry higher assessed values.
Oregon has statewide rent stabilization that limits annual rent increases on most residential rentals, with an exemption for newer buildings, plus just-cause rules after the first year of tenancy. Portland adds its own requirements, including relocation payments in some situations. Underwriting uses actual lease rents, so do not count on an increase above what the law allows.
Wildfire risk has raised premiums and narrowed carrier options in parts of southern and central Oregon, including around Bend and Medford. In Portland, older homes may face questions about seismic retrofits. Get a quote early.
This example is illustrative and not a quote. An investor owns a duplex on Portland's east side appraised at $620,000 with an existing loan of $310,000. Rent is $3,750 a month, and taxes and insurance run $640 a month.
At 75% LTV the new loan is $465,000, leaving $155,000 after the payoff and before closing costs. On a 30-year amortization, principal and interest is about $3,172, so the total payment is about $3,812 and the DSCR is about 0.98x, below the 1.0x standard minimum.
At 70% LTV the loan is $434,000 and principal and interest is about $2,961. The payment drops to about $3,601, the DSCR rises to about 1.04x, and the investor still receives $124,000 before closing costs.
At 75% LTV the ratio sits below 1.0x. At 70% LTV it clears the minimum. Because Oregon caps rent increases, the investor cannot count on raising rents quickly to close the gap.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Appraised value | $620,000 | $620,000 |
| New loan | $465,000 | $434,000 |
| Existing loan payoff | $310,000 | $310,000 |
| Cash before closing costs | $155,000 | $124,000 |
| Monthly payment (P&I, taxes, insurance) | About $3,812 | About $3,601 |
| DSCR at $3,750 rent | About 0.98x | About 1.04x |
Seasoning, meaning how long you have owned the property, varies by program. Some programs allow cash-out soon after purchase, while others want several months of ownership or cap the loan at what you paid plus documented improvements until the property has been owned longer.
Even with plenty of equity, the cash can be limited by three things: the 75% LTV cap, the rent's ability to cover the new payment at the program minimum, and closing costs. On 5-8 unit properties and larger balances, the maximum LTV can be lower, and it varies by program.
Investors in Oregon typically use cash-out proceeds for business purposes such as:
Pulling these together up front avoids back-and-forth during underwriting.
Yes. LendingStreet finances DSCR loans, including cash-out refinances up to 75% LTV, on 1 to 8 unit investment property across Oregon.
Up to 75% of the appraised value, minus your existing payoff and closing costs. The rent also has to cover the new payment at the program minimum, which can limit the amount.
No. Oregon generally does not allow local transfer taxes, and Washington County's applies to sales, not refinances. There is no state mortgage tax.
No. A refinance does not change the assessed value under Measure 50. Major improvements can, and underwriting uses the current bill.
Underwriting uses actual lease rents. Because annual increases are limited on most rentals, you cannot plan on a quick rent bump to support a larger loan, so size the cash-out to today's rents.
It depends on the program. Some programs have little or no seasoning requirement; others use your cost basis until the property has been owned for a set period.
Yes. LLC borrowers are standard on DSCR loans. If the property is in your personal name, you may be able to move it into an LLC as part of the refinance.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental, not your residence.
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