Many Portsmouth landlords bought years ago and now own rentals worth far more than their loans. A cash-out refinance turns that equity into cash, but in a high-value city the rent, not the appraisal, usually sets how much you can take.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Portsmouth and the Seacoast up to 75% LTV, qualifying on the property's rent rather than your income. The standard minimum DSCR is 1.0x and the minimum credit score is 620. Cash-out seasoning varies by program, and in Portsmouth the ratio often supports less than the maximum LTV.
Values across Portsmouth's older neighborhoods have climbed for years, especially in the West End, South End and North End. Owners use cash-out proceeds to buy more rentals, often in Dover or Rochester where prices per unit are lower, to fund repairs on older buildings, or to pay off a higher-cost loan.
Because DSCR loans qualify on rent, you do not need to show W-2s or tax returns, and the loan can close in your LLC.
Cash-out refinances are also used to buy out a partner, settle an estate when heirs want to keep a rental, or move a property from personal ownership into a long-term loan that fits a growing portfolio. In each case, the rent and the appraisal decide the loan amount.
Cash-out goes up to 75% of appraised value. In Portsmouth, high values can push a 75% loan past what the rent can carry at 1.0x, especially on singles and two-families leased at long-term rents. When that happens, the ratio limits your loan, and the right move is to size the cash-out to the rent, use a sub-1.0 DSCR program where it fits, or raise rents at renewal first.
The opposite is often true in Dover, Rochester and Somersworth, where lower values per unit leave more room in the ratio and the 75% maximum is easier to reach. If you own rentals in both places, it can make sense to pull cash from the inland property and leave the Portsmouth property at a lower balance.
Rents in Portsmouth have risen too, but more slowly than values in many older neighborhoods. If your leases renew within a few months, waiting to refinance until the new rents are in place can increase the loan the ratio supports.
This example is illustrative and not a quote. An owner has a West End two-family that appraises at $900,000, with a $310,000 payoff. The units rent for $2,600 each, $5,200 a month. Taxes are $1,050 a month and insurance is $210.
At 75% LTV the loan would be $675,000 and DSCR only about 0.87x. At 65%, DSCR is about 0.97x. At 60%, the loan is $540,000, DSCR is about 1.03x, and the owner still takes out about $230,000 before closing costs.
The table shows why leverage targets should start with the rent. The appraisal gives you a ceiling; the rent decides how close to it you can get.
| Item | 75% LTV | 65% LTV | 60% LTV |
|---|---|---|---|
| Loan amount | $675,000 | $585,000 | $540,000 |
| Estimated principal and interest | $4,720 | $4,090 | $3,776 |
| Taxes and insurance | $1,260 | $1,260 | $1,260 |
| Total payment | $5,980 | $5,350 | $5,036 |
| DSCR at $5,200 rent | 0.87x | 0.97x | 1.03x |
| Cash before closing costs | $365,000 | $275,000 | $230,000 |
If you bought or renovated recently, the program decides how long you must own the property before the new appraised value can be used. Seasoning rules vary by program; our seasoning guide explains the common options. Recent buyers sometimes start with a rate-and-term refinance and take cash later.
If your property was bought with cash, some programs allow a cash-out soon after purchase under specific rules. Ask about the options for your situation, because the right path depends on how long you have owned the property and what you have spent on it.
New Hampshire towns reappraise at least every five years, and Portsmouth's bills reflect its latest revaluation. If a revaluation is coming, your tax bill and ratio may change soon after closing. A refinance does not trigger the state transfer tax, but recording and title costs still apply.
Your insurance premium may also change when you refinance if your policy is old or the building has had upgrades. Get a current quote, because insurance is part of the DSCR payment.
Whatever the purpose, keep a cushion. A cash-out refinance increases your monthly payment, so leave enough in reserves to handle a vacancy, a heating repair or a tax increase after the next revaluation.
Appraisers value Portsmouth rentals using nearby sales, which can be spread out for unusual or historic buildings. Help them by sharing a list of improvements with dates and costs, recent comparable sales you know of and your current rent roll. If the property has a legal accessory unit or extra parking, make sure that is documented, because it can affect both value and rent.
Have your current leases, the latest mortgage statement, the tax bill, insurance declarations and your LLC documents ready. If rents are below market, say so; an appraiser's market rent opinion may help on some programs.
A clean file matters more on a cash-out than on a purchase because there is no seller pushing a closing date. Missing leases or an unclear rent roll are the most common reasons a cash-out takes longer than expected.
Tell us the address, estimated value, payoff and rents. We will show the cash available at a few loan amounts so you can choose. Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below.
Up to 75% LTV, minus your payoff and costs, as long as the rent supports the new payment. In Portsmouth the ratio often limits the loan before LTV does.
Take a smaller loan, wait for rent increases, or ask about sub-1.0 DSCR programs where they fit.
It varies by program. Recent purchases may use the purchase price or need a waiting period before using a new appraisal.
No. The transfer tax applies to transfers of ownership, not to a refinance in the same name.
Yes. LLC borrowers are standard.
No. We qualify on the property's rent, your credit and reserves.
Yes, though max LTV can be lower on 5-8 unit properties and larger balances.
Timing depends on the appraisal, title and insurance. Most delays come from missing leases or documents, so send a complete file.
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