A renovated mill house in Olympia, a brick ranch in Cayce, a bungalow in Earlewood: Columbia's BRRRR investors finish the work, sign a lease and then face a short-term loan with a maturity date. A rate-and-term refinance replaces that loan with one the rent can carry for decades.
In short: LendingStreet offers DSCR rate-and-term refinances on 1-8 unit rentals in the Columbia, SC metro, paying off hard money, bridge loans or existing mortgages up to 80% LTV on some programs. The loan qualifies on the lease, with a 1.0x standard minimum DSCR, a 620 minimum credit score and 30-year terms available. No W-2s or tax returns are required, and LLC borrowers are standard.
The common thread is a stable long-term payment the rent covers, without pulling meaningful cash out of the property.
A rate-and-term refinance pays off existing liens and closing costs with little or no cash back. Because less equity leaves the property, some programs allow up to 80% LTV, versus 75% on a cash-out. That extra room helps when an after-repair appraisal comes in slightly below your estimate, which happens in neighborhoods with few renovated sales.
If you need cash for the next purchase, compare this page with our Columbia cash-out guide; the right answer depends on whether leverage or cash matters more on this property.
This example is illustrative and not a quote. An investor renovated an Olympia mill house and owes $168,000 on an interest-only rehab loan, paying about $1,680 a month in interest. The house is now leased for $1,700 and appraises at $235,000.
A rate-and-term refinance of $172,000, covering the payoff and closing costs, is about 73% LTV. Estimated principal and interest on a 30-year term is about $1,203. With taxes at the 6% assessment ratio of $300 and insurance of $115, the payment is near $1,618 and the DSCR is about 1.05x, compared with about $2,095 a month under the rehab loan.
The change in monthly cost is the real story. The rehab loan's interest alone exceeded the rent; the new payment fits under it with room to spare, and every payment now reduces the balance.
| Item | Rehab loan today | After DSCR refinance |
|---|---|---|
| Balance | $168,000 | $172,000 |
| Monthly loan payment | $1,680 interest only | $1,203 principal and interest |
| Taxes and insurance | $415 | $415 |
| Total monthly | $2,095 | $1,618 |
| Term | Short-term, maturing | 30 years available |
| DSCR at $1,700 rent | 0.81x | 1.05x |
Give yourself 45 to 60 days before your short-term loan matures. A Columbia refinance needs an appraisal, an attorney's title update, an insurance binder and your lease. Extension fees on hard money can be expensive, and an appraisal delay near the deadline leaves little room.
Order the appraisal as soon as the lease is signed and the house is clean and finished. Photos of a completed, occupied home support both the value and the rent.
If your rehab lender charges a fee to extend, ask what it is now, so you can weigh it against any rush charges on the refinance.
Mill houses and bungalows vary a lot in finish and condition, so documentation matters. Provide a list of improvements with costs, before and after photos and closed permits. If the property is in a historic or conservation district, include any design approvals. Open permits can delay the attorney's title work.
A one-page summary of the work, grouped by roof, systems, structure and finishes, is easier for an appraiser to use than a stack of receipts.
Renovation can raise the assessed value, and the rental uses a 6% assessment ratio with full millage. If you bought the house recently, the purchase may already have triggered reappraisal. Use a current estimate from the county, not the prior owner's bill.
Insurance on a freshly renovated house with a newer roof and updated wiring is usually easier to place. Shop the policy before closing; a lower premium improves the ratio directly.
If your county is approaching its next reassessment year, plan for a possible change in the bill and keep the ratio above the minimum with some room.
If the rent does not quite cover the new payment at 1.0x, options include a smaller loan, an interest-only period on some programs or a sub-1.0 DSCR program. Investors with five or more rentals can refinance them together on a blanket portfolio loan.
If the numbers are close, bring them to us before the appraisal. Small changes in loan amount or term can make the difference.
A slightly larger cash contribution at closing is often the simplest fix, and it lowers the payment for the life of the loan.
If you bought the property recently, some programs use the lower of your purchase price plus documented improvements or the new appraised value until a seasoning period has passed. Others allow the appraised value sooner when the work and costs are well documented. Requirements vary by program.
This matters most to investors who buy distressed Columbia houses well below their finished value. Keep every invoice, draw record and closed permit, and share your purchase date and total cost when you apply. That lets us tell you early whether the refinance will pay off your rehab loan in full or whether you should plan to bring some cash.
LendingStreet refinances rentals across the Columbia metro. Our investor loans are business-purpose loans on non-owner-occupied property. Send your payoff statement, lease and rehab summary through the form below, or call (877) 298-1001.
We will show the payment at a few loan amounts so you can see what each option requires at closing.
A refinance that pays off existing loans and costs with little or no cash out, qualified on the rent.
Up to 80% on some programs; lower on 5-8 unit properties and larger balances.
Often yes. Seasoning and value rules vary by program, so share your purchase date and costs.
A lease helps support the rent. Some programs use market rent from the appraisal.
They may, after renovation or reappraisal. Rentals use a 6% assessment ratio, so budget a current estimate.
Often yes, but check with your attorney about whether the transfer affects your assessment.
Yes. We lend across the metro.
If the goal is to pay off the rehab loan and keep the payment low, rate-and-term often allows more leverage. If you need cash for the next deal, compare a cash-out refinance.
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