West Virginia's low prices and steady rents give many rentals strong cash flow, and some markets have also seen real appreciation. A DSCR cash-out refinance lets investors pull equity out, qualifying on the property's rent.
In short: Yes, LendingStreet finances DSCR cash-out refinances on 1 to 8 unit investment property in West Virginia, 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. West Virginia taxes rentals at roughly twice the rate of owner-occupied homes, and river valley flooding affects insurance, so those two lines matter most.
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.
Morgantown, home to West Virginia University, has the state's most active rental market, much of it student housing. The Eastern Panhandle, including Martinsburg and Charles Town, has grown with commuters to the Washington, DC area. Charleston and Huntington have older single-family and small multifamily rentals, and Wheeling and Parkersburg offer lower entry prices.
Low prices mean small balances, so it helps to remember that DSCR loans start at $150,000. A single lower-priced home may not support that loan size at 75% LTV, but a small multifamily building or several rentals combined can.
Comparable sales can be thin in smaller towns, and appraisers may need to reach across county lines. Clean records of rents, repairs and updates help the appraiser support the value.
West Virginia charges an excise tax on deed transfers, with state and county portions. A refinance where ownership does not change generally does not trigger it, and there is no state mortgage tax. Refinance costs are mainly title insurance, county clerk recording fees, the appraisal and lender costs.
If you are deeding the property into an LLC, ask your title company or attorney how the excise tax treats that transfer.
West Virginia classifies owner-occupied residential property as Class II, while rentals fall into Class III (outside a municipality) or Class IV (inside one). Class III and IV rates are roughly double the Class II rate, so a rental's bill is much higher than an owner-occupant's on the same home.
If you bought from an owner-occupant, the classification should change. A refinance does not trigger reassessment, but underwriting uses the current bill, so make sure it reflects the correct class.
Many West Virginia towns sit in narrow river valleys, and severe floods have hit the state in recent years. Properties in mapped flood zones require flood insurance, which counts in the payment. Older homes with original wiring or heating may face higher premiums.
Student rentals in Morgantown often lease by the bedroom on annual terms. That can work for a DSCR loan if leases are in place, but underwriting uses current lease rents, so refinance when the property is fully leased.
This example is illustrative and not a quote. An investor owns a single-family student rental in Morgantown appraised at $300,000 with an existing loan of $110,000. Rent is $2,500 a month, and taxes and insurance run $480 a month.
At 75% LTV the new loan is $225,000, leaving $115,000 after the payoff and before closing costs. On a 30-year amortization, principal and interest is about $1,535, so the total payment is about $2,015 and the DSCR is about 1.24x, above the 1.0x standard minimum.
The $480 uses the Class IV rate inside city limits. At the seller's Class II rate, the bill would have been roughly half.
| Item | Amount |
|---|---|
| Appraised value | $300,000 |
| New loan at 75% LTV | $225,000 |
| Existing loan payoff | $110,000 |
| Cash before closing costs | $115,000 |
| Monthly payment (P&I, taxes, insurance) | About $2,015 |
| DSCR at $2,500 rent | About 1.24x |
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 West Virginia 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 West Virginia.
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.
Generally no. The excise tax applies to deed transfers. A refinance with no change in ownership does not trigger it.
Rentals are taxed as Class III or IV, at roughly twice the Class II rate for owner-occupied homes. Underwriting uses the bill at the rental class.
Yes, if the new loan is at least $150,000. On lower-priced homes, a blanket portfolio loan across several properties can be an option.
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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