Short-term money is how many Anchorage multiplexes get bought and fixed. Once the boiler is replaced, the units are turned and tenants are paying, the job is to get out of that loan and into one that matches a long hold.
In short: LendingStreet refinances 1-8 unit rentals in Anchorage, Eagle River and the Mat-Su into DSCR loans that pay off hard money, bridge loans or existing mortgages, with up to 80% LTV on some rate-and-term programs and 30-year terms available. Qualification is based on the property's rent, with a 1.0x standard minimum DSCR, a 620 minimum credit score and LLC borrowers standard.
The common thread is a property that has been improved or stabilized and now deserves a long-term loan.
In each case the goal is the same: a predictable payment, no maturity date hanging over the property and a loan that qualifies on the rent you are collecting today.
This example is illustrative and not a quote. An investor owes $468,000 on a short-term interest-only loan on a Mountain View fourplex, paying about $4,095 a month in interest. After a boiler replacement and unit turns, all four units lease at $1,475, or $5,900 a month.
The fourplex appraises at $655,000. A new DSCR loan of $477,500 covers the payoff and about $9,500 in closing costs, about 73% LTV. Estimated principal and interest is about $3,339. With taxes of $765 and insurance of $385, the payment is about $4,489 and the DSCR is about 1.31x. The owner pays heat for the building, which is not in the DSCR payment but is in the owner's budget.
| Item | Short-term loan | New DSCR loan |
|---|---|---|
| Balance | $468,000 | $477,500 |
| Structure | Interest-only, maturing | 30-year amortizing |
| Monthly loan payment | $4,095 | $3,339 |
| Taxes and insurance | $1,150 | $1,150 |
| Total payment | $5,245 | $4,489 |
| DSCR at $5,900 rent | About 1.12x | About 1.31x |
Rate-and-term can reach up to 80% LTV on some programs, while cash-out tops out at 75% LTV. If the goal is to retire a maturing loan with the most comfortable payment, rate-and-term is usually the cleaner choice and tends to face fewer seasoning questions. If the property has gained substantial value and you want capital back, compare a cash-out refinance.
A rate-and-term refinance can also roll in closing costs, as in the example above. The exact limit on cash back to the borrower varies by program.
The new loan is underwritten on rent. Signed leases, deposit records and a current rent roll make the strongest file. If tenants are military families, leases with military clauses are fine.
Appraisers will also estimate market rent. In neighborhoods with plenty of multiplexes, such as Mountain View, Fairview and Spenard, there are usually enough comparables. For unusual properties, provide your own rent evidence.
Furnished medium-term rentals for traveling nurses and contractors are common near the hospitals in Midtown and East Anchorage. If you rent that way, ask how the program treats that income before you apply.
The Municipality reassesses annually. If you renovated recently, the next assessment may reflect the improved value, so budget your payment on a realistic future tax figure rather than last year's bill. A newer boiler, roof and windows also help when shopping insurance, so give the carrier the details.
Heating costs are not part of the DSCR payment, but a more efficient boiler lowers your operating costs. Keep the invoice and specifications, both for the insurer and for a future buyer.
Start the refinance 60 to 90 days before the short-term loan matures. Appraisals, title work and insurance take time, and Anchorage's smaller pool of appraisers can mean longer scheduling in busy months. Extension fees on a maturing loan add up quickly.
If the property is in Eagle River or the Mat-Su, factor in travel time for the appraiser and any well or septic documentation the appraisal or title work requires.
You can bring cash to closing for a smaller loan, extend the short-term loan to finish leasing, provide better comparables to support value or ask about sub-1.0 DSCR programs where they fit. Talk to us early so the option is chosen before the maturity date forces it.
A low appraisal is not always final. If you have better comparable sales or leases that the appraiser missed, provide them promptly. Clear, local evidence is the most persuasive response.
Many Anchorage rentals are bought with private money or seller financing, sometimes from a retiring landlord. These notes often have balloon dates and can be paid off with a DSCR refinance.
Read the note for any notice requirements, and ask the holder for a written payoff letter early. Private holders sometimes take longer than institutions to respond. If the seller still holds a deed of trust, the title company will need a reconveyance at closing.
Use the form below or call (877) 298-1001 with the address, payoff figure and current rents. Our investor loans are business-purpose loans on non-owner-occupied property. For statewide information, see our Alaska rate-and-term refinance page.
If you are unsure whether rate-and-term or cash-out fits better, we can quote both side by side.
Yes. Once the property is finished and leased, a rate-and-term DSCR refinance is a common exit. Start the process well before the short-term loan matures.
Up to 80% LTV on some rate-and-term programs, enough to cover the payoff and closing costs in many cases. The final amount depends on the appraisal and rent.
No. It is not part of the DSCR payment, but it affects your cash flow and should be in your budget.
Vacant units lower the qualifying rent. You can wait, extend the short-term loan or choose a smaller loan. Signed leases on every unit make the strongest file.
Timing depends on the appraisal and title. Start 60 to 90 days before your current loan matures. Appraisal scheduling can take longer in summer.
In many cases yes, within the program LTV limits. The new loan must still meet the program DSCR minimum.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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