A short-term loan with a maturity date in January is a different problem in Fairbanks than in most places. Appraisers, inspectors and title work all slow down in deep winter, and a refinance that should take weeks can stretch. Planning the move to long-term debt early is half the job.
In short: LendingStreet refinances Fairbanks 1-8 unit rentals with DSCR rate-and-term loans that pay off hard money, bridge, seller-financed or existing loans, 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 aim is a lower or more predictable payment and no balloon, rather than cash out.
Fairbanks rate-and-term requests 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 loan replaces a balloon date with a payment you can plan around.
This example is illustrative and not a quote. An investor bought a triplex near College Road with a bridge loan and has all three units leased at $1,300, for $3,900 a month. The bridge balance is $330,000 with estimated interest-only payments of about $2,888. The building appraises at $440,000.
A new DSCR loan of $336,000, about 76% LTV, pays off the bridge and closing costs. Estimated principal and interest is about $2,321, the total payment with assumed borough taxes and insurance is about $2,996 and the DSCR is about 1.30x.
The new payment is higher than the interest-only payment, but it pays down principal every month, removes the maturity date and ends extension fees. The ratio stays comfortably above the standard minimum.
| Item | Bridge loan | New DSCR loan |
|---|---|---|
| Balance | $330,000 | $336,000 |
| Payment type | Interest-only | 30-year amortizing |
| Estimated principal and interest | $2,888 | $2,321 |
| Taxes and insurance (assumed) | $675 | $675 |
| Total monthly payment | $3,562 | $2,996 |
| Maturity | Short-term | 30 years |
Start a refinance at least a couple of months before your short-term loan matures, and earlier if that date falls in winter. Exterior inspection of roofs and siding is harder under snow, and appraisers may schedule further out. A refinance started in late summer or early fall often moves most smoothly.
For university-area buildings, leases often follow the school year. Refinancing when units are freshly leased in late summer gives you the strongest rent roll.
If your bridge or hard money loan matures in December or January, aim to have the appraisal ordered by early fall. That gives room for any snow-season delays in scheduling.
Rate-and-term can reach up to 80% LTV on some programs, compared with 75% for cash-out. If you have owned the property briefly, the lender may limit the loan to your purchase price plus documented improvements rather than the new appraised value. Seasoning varies by program.
Keep invoices, permits where required and photos of every improvement. They help whether the loan is based on value or on cost.
Fairbanks appraisers pay close attention to items that matter in a cold climate.
Have the boiler or furnace serviced before the appraisal and keep the record. A clean, documented system supports value and the insurance quote.
On a stabilized triplex or fourplex, the higher rate-and-term limit can be what lets a full bridge payoff fit without bringing cash to closing.
Leases at market rent with on-time payments are the best support. Military tenants often have leases with early termination on orders, which lenders understand; they compare the lease with market rent. Student leases near the university are common too, and a full building at the start of the school year presents well.
Avoid starting a refinance right after a tenant gives notice. A fully leased building with current payments presents best.
Alaska has no real estate transfer tax, so costs mainly cover title, recording, appraisal and lender fees. Escrows for borough taxes and insurance are usually set up at closing. Reasonable costs can often be rolled into the loan if the LTV allows.
Ask your title company for a cost estimate early so you know the cash to close, if any, before setting the new loan amount.
Your first payment date and escrow deposits affect cash to close, so read the closing estimate line by line before signing.
If the appraisal or rent does not support a full payoff, options include bringing cash to closing, a structure with a lower payment or a sub-1.0 DSCR program where it fits. Starting early leaves time to choose.
We would rather show you a smaller, workable loan early than have you find a shortfall days before your bridge matures.
Send the address, payoff statement, leases, rent roll and estimated value. Call (877) 298-1001 or use the form below.
If you also want to take cash out, ask us to price both structures so you can compare.
Yes, once the property is leased and seasoning requirements, which vary by program, are met. A full rent roll and a serviced heating system make the file stronger.
Up to 80% on some programs, lower on some larger balances and 5-8 unit properties.
Winter refinances work, but scheduling can be slower. Start early if your maturity date falls in winter. Appraisers may schedule further out and exterior details can be harder to see under snow.
Yes. A DSCR loan can pay off a private note on an investment property. Bring the note, the payoff figure and a record of recent payments.
Yes. Lenders compare them with market rent, as with any lease.
No. The loan qualifies on rent. You will still provide a credit report, entity documents and bank statements.
Often, if the LTV leaves room.
No. These are business-purpose loans on non-owner-occupied property. The borrower, usually an LLC, holds the property as a rental or resale investment.
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