Many Eugene investors finish a project on short-term money: a bridge loan to buy, a rehab loan to renovate, a construction loan to add an ADU or a middle housing unit. The rate-and-term refinance is how that project becomes a long-term hold, with a payment the rent can carry and no maturity date hanging over it.
In short: LendingStreet offers DSCR rate-and-term refinancing on 1-8 unit rentals in Eugene, Springfield and Lane County, qualified on the property's rent rather than your personal income. Rate-and-term goes up to 80% LTV on some programs, the standard minimum DSCR is 1.0x and loans start at $150,000. It is used to pay off hard money, bridge or construction loans, or an existing loan with less favorable terms.
A rate-and-term refinance pays off existing debt and closing costs without meaningful cash back. These are the loans Lane County investors most often replace.
| Existing loan | Typical reason | Key documents |
|---|---|---|
| Bridge loan | Bought fast before leasing season | Payoff letter, new leases |
| Fix and flip or rehab loan | Renovation finished, keeping as a rental | Payoff, final permits, lease |
| Construction loan | New ADU or middle housing unit complete | Certificate of occupancy, leases |
| Balloon or adjustable bank loan | Payment uncertainty at reset | Note terms, current statement |
| Loan in personal name | Moving to an LLC borrower | Entity documents |
This example is illustrative and not a quote. An investor owns a house in the Cal Young area and used a short-term loan to buy it and build a detached ADU in the back yard. The short-term balance is $398,000, with estimated interest-only payments of about $3,482 a month. The main house now rents for $2,350 and the ADU for $1,450, $3,800 a month together, and the property appraises at $615,000.
A DSCR rate-and-term loan of $404,500, about 66% LTV, pays off the short-term loan and closing costs. Estimated principal and interest is about $2,691. With taxes of $467, reflecting the added ADU value, and insurance of $150, the total payment is about $3,308 and DSCR is about 1.15x.
| Item | Before | After |
|---|---|---|
| Loan | $398,000 short-term | $404,500 DSCR |
| Payment type | Interest-only | Amortizing, 30-year |
| Monthly loan payment | $3,482 | $2,691 |
| Taxes and insurance | Paid separately | $617 |
| DSCR at $3,800 rent | Not applicable | About 1.15x |
Oregon's housing laws have made extra units common in Eugene, and refinancing those projects is now routine. The appraisal needs to treat the new unit as legal, which means final permits and, for new construction, a certificate of occupancy. An ADU without final sign-off may not be counted for value or rent.
The rent the appraiser credits for an ADU depends on comparable rentals, and in some neighborhoods there are not many. A signed lease at a market rent, plus a short list of similar ADUs you know of, helps.
Refinance once the work is finished, permits are closed and tenants have signed leases. Near campus, that often means refinancing in late summer after fall leases start, when the rent roll is full. Off campus, any month works as long as the property is leased.
Make sure the new unit is set up as a true rental before the appraisal: separate entrance, kitchen, bath and, ideally, a signed lease. If your short-term loan matures soon, start the refinance well ahead. Appraisals, title and insurance all take time, and a maturity date that arrives during a slow appraisal can force an extension fee or a rushed decision.
Measure 50 does not reset value on a sale or refinance, but new construction and major improvements add assessed value. After an ADU or addition, the next Lane County statement may be higher than the one you had when you bought. Use the latest statement, and if the new value has not been added yet, ask the assessor's office what to expect.
Investors who build ADUs or middle housing on more than one lot often end up with several short-term loans maturing within a year. Refinancing them one by one means multiple appraisals, title orders and closings on different schedules. If you have five or more rentals ready for long-term debt, a blanket portfolio loan can refinance them together, qualified on combined cash flow, with one payment and release provisions if you later sell one.
Separate DSCR loans still make sense when properties are on different timelines or when you plan to sell some of them soon. The right answer depends on your plans for each property, not on the number alone.
Whichever route you take, line up the documents early: final permits and certificates of occupancy, leases for each unit, current tax statements, insurance for every property and payoff letters from each short-term lender. A complete package keeps every maturity date comfortably ahead of you.
If the property is now worth well above what you owe, a cash-out refinance up to 75% LTV may suit you better, and the rent may support more than the payoff. Seasoning rules differ between the two and vary by program. Many investors take rate-and-term first to get off the short-term loan quickly and revisit cash-out later with more history. See our Eugene cash-out page for that path.
Once you hold the property long term, Oregon's rent stabilization and just-cause rules apply to most tenancies. Newly built units are exempt from the annual cap for their first 15 years, which can matter for a new ADU or middle housing unit. Confirm current rules, since thresholds and notice requirements are set by state law and can change.
Send the address, payoff amount, maturity date, rents and estimated value through the form below, or call (877) 298-1001. Include the permit numbers and the date of final inspection for any new unit, and copies of the leases for both the main house and the ADU if you have one. For multiple properties coming off short-term loans, ask about a blanket portfolio loan. For statewide terms, see our Oregon rate-and-term page.
A refinance that pays off existing debt and closing costs, without meaningful cash back, and qualifies on the property's rent.
Yes. Once the property is leased, a DSCR loan can pay off the bridge.
Yes, if it is permitted and finaled. Both units' rent can count toward the ratio.
Up to 80% LTV on some programs, as long as the rent covers the payment at the program minimum. Many Eugene files land lower because of the price-to-rent ratio.
The refinance itself does not change them. New construction or major improvements can add assessed value.
No. The loan qualifies on the property's rent.
Often after fall leases start, when the rent roll is full.
Often yes. LLC borrowers are standard. Ask your title company how the transfer is handled.
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