Investors who bought St. Paul rentals years ago in Mac-Groveland, Highland Park or Como often have far more equity than debt. A DSCR cash-out refinance turns some of that equity into cash for the next purchase without personal income documentation.
In short: LendingStreet's DSCR cash-out refinance lets St. Paul investors borrow up to 75% of a 1-8 unit rental's value, qualifying on the property's rent rather than W-2s or tax returns. The new payment must still meet the 1.0x standard minimum DSCR, and seasoning requirements vary by program. In St. Paul, rent stabilization means the rent you have today is the rent that qualifies the loan.
The most common reason is to buy the next property: a down payment on another east metro duplex, a fix and flip in Payne-Phalen, or a lot for an infill build. Others use cash-out to fund deferred work on older buildings, such as a new boiler, roof or windows, or to pay off a higher-cost loan.
Because DSCR loans close in an LLC as standard, many investors also use the refinance to move a property into their business entity.
Two limits apply at once. The loan cannot exceed 75% of the appraised value, and the full payment (principal, interest, taxes, insurance and any HOA) must be covered by rent at the program's DSCR minimum. On many St. Paul properties, the DSCR limit binds before the LTV limit, because older homes in high-value areas rent for less relative to their value.
This example is illustrative and not a quote. An investor owns a Mac-Groveland home that appraises at $420,000 and rents for $2,850 a month. The current loan balance is $150,000. Taxes are $430 a month and insurance is $150.
At 75% LTV the new loan is $315,000. Estimated principal and interest is about $2,176, the total payment is about $2,756 and the DSCR is about 1.03x. After paying off the old loan and about $7,500 in estimated closing costs, the investor receives roughly $157,500.
At 70% LTV the loan would be $294,000, the DSCR about 1.09x and the cash about $136,500. The trade-off is less cash for more cushion.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| New loan | $315,000 | $294,000 |
| Estimated principal and interest | $2,176 | $2,031 |
| Taxes and insurance | $580 | $580 |
| Total payment | $2,756 | $2,611 |
| DSCR at $2,850 rent | 1.03x | 1.09x |
| Estimated cash to investor | $157,500 | $136,500 |
St. Paul's rent stabilization ordinance generally caps annual increases on covered units at 3%, with exceptions through the city. That matters for a cash-out because the appraiser and the underwriter look at actual leases. If your tenant has been in place for years at below-market rent, the ordinance may limit how quickly that changes, and the loan will be sized on what the lease says today.
Ask whether your property is covered or exempt under the current rules before you set your cash target.
If you bought or renovated the property recently, seasoning rules decide whether the loan uses the appraised value or your cost. These vary by program. Read our cash-out seasoning guide, and if the property is newly finished, compare a rate-and-term refinance as an alternative.
Pull the latest Ramsey County valuation notice and tax statement for the non-homestead classification. Minnesota's mortgage registry tax is charged on the new loan amount at recording, so include it in your closing cost estimate. If the property has a Fire Certificate of Occupancy with open orders, plan to resolve them before the appraisal.
Cash from a DSCR refinance is business-purpose money for your investing. Common next steps are buying another rental with a DSCR loan, funding a flip, or combining several paid-down rentals into a blanket portfolio loan. Our investor loans are business-purpose loans on non-owner-occupied property.
Appraisers in St. Paul compare your rental to recent sales of similar homes nearby. Condition matters more than many owners expect. A Highland Park home with an original kitchen, an aging boiler and peeling exterior paint can appraise well below a renovated house on the same block, and that lowers the cash available at 75% LTV.
Before you order the appraisal, take care of visible items that are cheap to fix: paint, trim, broken storm windows, missing smoke and carbon monoxide detectors and yard cleanup. Gather a list of improvements you have made with dates and costs, such as a new roof or furnace, so the appraiser can account for them.
If the appraisal comes in lower than hoped, the rent may still support the loan at a lower amount. We can rerun the ratio and show you the cash available at the new value.
Think about the timing of the refinance against the lease calendar as well. A unit that is vacant during the appraisal, or a lease that expires the month you apply, can lower the income the underwriter uses. If you can, refinance when the property is fully leased on terms that run well past closing. For properties in suburbs such as Roseville or Maplewood, confirm that the rental license is current, since many east metro cities license rentals separately from St. Paul and an expired license can create questions at underwriting.
Send the address, estimated value, current balance and rents through the form below, or call (877) 298-1001. We will show you the cash available at a few loan amounts. You can also compare our Minnesota DSCR cash-out page.
Up to 75% of the appraised value, as long as the rent covers the new payment at the program's DSCR minimum. Older homes with lower rent relative to value often hit the DSCR limit first.
No. The loan qualifies on the property's rent, not your personal income.
It can. The loan is sized on actual rent, and covered units generally face a 3% annual cap on increases.
Seasoning varies by program. Recent purchases may be valued on cost rather than appraisal. If you only need to pay off a short-term loan, a rate-and-term refinance may work sooner.
Yes. 1-8 unit rentals qualify, with leverage that varies by program on 5-8 units.
Often, yes. LLC borrowers are standard on our DSCR loans. Have your LLC documents and operating agreement ready before you apply.
Title, appraisal, recording and Minnesota's mortgage registry tax on the new loan, among others. Ask for an estimate up front. Your title company can estimate it once the loan amount is set.
No. We only lend on non-owner-occupied investment property.
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