Many Cheyenne rentals start life on short-term money: a flip that became a rental, a bridge loan on a vacant duplex, or a seller-financed note coming due. A rate-and-term refinance moves that debt onto a long-term loan the rent can carry.
In short: LendingStreet refinances Cheyenne 1-8 unit rentals with DSCR rate-and-term loans that pay off hard money, bridge or existing mortgages, qualified on the property's rent. Some programs go up to 80% LTV on rate-and-term, 30-year terms are available, and the minimum credit score is 620. The goal is a lower or more predictable payment, not cash in hand.
A rate-and-term refinance pays off the existing loan and closing costs without taking meaningful cash out. Because there is less new money, some programs allow higher leverage than cash-out, up to 80% LTV.
Rate-and-term is the usual next step after a BRRRR-style project: buy, rehab, rent, then refinance into long-term debt. If you want to pull equity at the same time, compare it with a cash-out refinance, which caps leverage lower.
| Feature | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing debt | Pay off debt and take cash |
| Max LTV | Up to 80% on some programs | Up to 75% |
| Seasoning | Varies by program | Varies by program |
| Qualifies on | Property rent | Property rent |
Rate-and-term refinances usually follow a short-term phase.
In each case the property is now stable and leased, and the short-term loan has done its job. Moving to a 30-year DSCR loan replaces a balloon date with a predictable payment.
This example is illustrative and not a quote. An investor finished rehabbing a south Cheyenne ranch and leased it for $2,675. The hard money balance is $322,000 with estimated interest-only payments of about $2,818 a month. The home appraises at $420,000.
A new DSCR loan of $328,000 (about 78% LTV) covers the payoff and closing costs. Estimated principal and interest is about $2,265, the total payment with assumed taxes and insurance is about $2,665, and the DSCR is about 1.00x. The investor now has a 30-year amortizing loan instead of a short-term balloon.
Because the hard money loan was interest-only at a higher cost, the monthly payment on the new loan can be similar or lower even though it includes principal and the investor starts building equity.
Your new value depends on the appraisal. In a non-disclosure state like Wyoming, appraisers lean on MLS sales and their own data. Help them with a list of improvements, before-and-after photos and permits for the work.
Make sure permits for roofing, electrical and basement bedrooms are closed. Open permits or unpermitted bedrooms can reduce the value or the bedroom count.
If the new value comes in lower than expected, a rate-and-term refinance can still work at a lower LTV, but you may need to bring cash to pay down the old loan.
A signed lease at market rent makes the strongest case. For military tenants, include the lease and any military clause. If the unit is vacant, the appraiser's market rent estimate is used where the program allows.
Cheyenne rents for updated three-bedroom homes with garages are supported by base housing allowances and local wages. Pull current listings to support your number.
Seasoning rules vary by program. Start the refinance well before your short-term loan matures so a delay in appraisal scheduling or title does not push you past the deadline. Extension fees on hard money add up quickly.
For a bridge loan with an extension option, compare the extension cost with the cost of closing your refinance a few weeks earlier.
Wyoming has no transfer tax, so closing costs mainly cover title, recording, appraisal and lender fees. You can usually roll reasonable closing costs into a rate-and-term loan if the LTV allows.
Escrows for taxes and insurance are usually set up at closing, so plan for the first year of insurance and a tax reserve in your cash to close.
Ask your title company for an estimate early so you know the cash to close, if any, before you lock in the new loan amount.
Most Cheyenne investors choose a 30-year term for the lowest payment and the strongest ratio. Some programs offer other structures, and the right choice depends on how long you plan to hold.
If you own several rentals that all need refinancing, a blanket portfolio loan may combine them into one loan with one payment.
Send the address, current payoff letter or statement, the lease and your estimated value. Call (877) 298-1001 or use the form below and our financing team will show your options.
If the numbers show the property cannot clear the minimum at the needed loan amount, we will tell you what it would take, such as a modest paydown or a sub-1.0 program where it fits.
Often, yes, once the property is leased and the program's seasoning requirement is met. Seasoning varies by program. A signed lease and a completed rehab with permits closed make the strongest file.
Up to 80% on some programs. Larger balances or 5-8 unit properties may be lower.
Usually the appraised value, though some programs look at cost when you have owned the property only briefly. If you have owned the property only a short time, the lender may cap the loan based on your purchase price plus documented improvements.
Yes. A DSCR loan can pay off a private or seller-held note on an investment property. Bring the note, the payoff figure and proof of recent payments so title can clear the old lien.
Often, if the LTV leaves room. Rolling in costs raises the loan amount, so confirm the ratio still clears the minimum.
That is common in Cheyenne. The lease still counts, and lenders compare it with market rent.
Yes. If you have five or more, a blanket portfolio loan can refinance them together. Otherwise each property gets its own DSCR loan.
No. Every loan we make is a business-purpose loan on non-owner-occupied investment property; we do not finance a home the borrower lives in.
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