Fort Worth has grown into one of the fastest-growing big cities in the country, and investors have followed the new subdivisions north and west. A DSCR rate-and-term refinance replaces short-term or high-cost debt on a leased Fort Worth rental with long-term financing sized on the rent.
In short: LendingStreet's DSCR rate-and-term refinance replaces short-term or older debt on a Fort Worth rental with a long-term loan qualified on rent, not tax returns. Loans start at $150,000 with up to 80% LTV on some programs, a 1.0x standard minimum DSCR, 620 minimum credit, and LLC borrowers are standard. Fort Worth investors often buy older homes near TCU or the Near Southside for rehab, or buy newer homes in north Fort Worth and Alliance-area subdivisions.
Fort Worth investors often buy older homes near TCU or the Near Southside for rehab, or buy newer homes in north Fort Worth and Alliance-area subdivisions. When a bridge or hard money loan comes due, or an existing loan no longer fits, a rate-and-term refinance resets the payment without taking cash out, which helps when high property taxes keep the ratio tight.
With rate-and-term, the new loan covers the payoff and closing costs and nothing more. The payoff is a predictable long-term payment instead of a looming balloon or an extension fee.
Investors buy in Fairmount, Ryan Place, Berkeley, the TCU area, Arlington Heights, Ridglea, Wedgwood and Riverside, and across north Fort Worth, Saginaw, Haltom City, North Richland Hills, Keller, Benbrook, Crowley and Burleson. The Alliance corridor and the Walsh development to the west add new-home rentals.
Older neighborhoods have 1920s to 1950s bungalows and Tudors, while the suburbs are full of brick homes built since the 1990s, often in subdivisions with HOAs and special districts. Foundation movement on clay soils and roof condition are common appraisal items.
Fort Worth appraisals are typically supported by many recent sales in newer subdivisions, and builders' own incentives can affect comps. In older neighborhoods near TCU and the Near Southside, renovated sales vary more. Rent schedules in north Fort Worth compare with plenty of similar leased homes, often listed through professional property managers.
If the goal is ending a short-term loan, rate-and-term is usually the cleaner path. If you want equity out for another purchase, a cash-out refinance is the tool, at a lower max LTV.
Before choosing, compare the payoff with what the appraisal is likely to show. If the loan you need is under 75% of value, either option works; if it is closer to 80%, rate-and-term may be the only fit.
| Item | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing debt and closing costs | Pull equity out as cash |
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to you | Little or none | Equity above the payoff |
| Seasoning | Varies by program | Varies by program; often longer |
| Best fit | Ending hard money or bridge debt | Funding the next purchase |
This example is illustrative and not a quote. An investor owns a 2018 four-bedroom in a north Fort Worth subdivision with a MUD, appraised at $345,000, with a $225,000 balance on a short-term loan. Rent is $2,600 a month. The new loan pays off the existing balance and rolls in about $5,600 of closing costs, for a loan of $230,600, or about 67% of value.
On 30-year amortization, estimated principal and interest is about $1,573 a month. Adding taxes of about $700, insurance of about $190 and HOA dues of $45 brings the total to about $2,508, so the DSCR is about 1.04x against the 1.0x standard minimum. With Texas taxes and MUD assessments, the tax line is more than a quarter of the payment here. A successful protest is one of the best ways to raise the ratio.
| Item | Amount |
|---|---|
| Appraised value | $345,000 |
| Existing loan payoff | $225,000 |
| Closing costs rolled in | $5,600 |
| New loan amount | $230,600 (about 67% LTV) |
| Estimated principal and interest | $1,573 |
| Taxes, insurance and HOA | $935 |
| Total monthly payment | $2,508 |
| Monthly rent | $2,600 |
| DSCR | About 1.04x |
Texas investors pay full property taxes without a homestead exemption, and many north Fort Worth subdivisions sit in MUDs or PIDs whose taxes or assessments are on the bill. Tarrant Appraisal District reappraises regularly and owners can protest each spring. The tax line often decides the ratio.
Texas has no state transfer tax or mortgage tax, so refinance closing costs are mainly title, recording, appraisal and lender fees.
North Texas is one of the most hail-prone regions in the country. Premiums and percentage wind and hail deductibles have risen, so get the quote early and check the roof age.
Fort Worth has long limited short-term rentals in single-family residential zoning, so most refinances here qualify on long-term leases; check current city rules before planning on short-term income. Suburbs and HOAs set their own leasing limits.
Our investor loans are business-purpose loans on non-owner-occupied property. Most borrowers close in an LLC and sign for the loan personally.
The appraisal includes a rent schedule, which sets market rent. The ratio uses the lower of the lease and market rent on many programs, so a lease well above market may not count in full.
Use the form below to get a quote, or call (877) 298-1001. Share the payoff, the leases and your tax and insurance numbers, and we will run the ratio and tell you what the appraisal needs to show. Our Texas rate-and-term page covers the statewide rules.
We look at the whole picture, including whether a sub-1.0 DSCR program, a lower loan amount or a blanket loan across several rentals would fit better than a single refinance.
Usually because of property taxes. Investors pay the full rate with no homestead exemption, and MUD or PID assessments add to it in many newer subdivisions.
Fort Worth has restricted short-term rentals in single-family zones, so most borrowers qualify on a long-term lease. Check current city rules and HOA restrictions.
Yes. We refinance rentals across Tarrant and Johnson counties, including Burleson, Crowley and the southern suburbs.
Yes. A new roof often helps the insurance quote and the appraisal. Keep the invoice and the insurer's documentation.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Seasoning rules vary by program. Some allow a refinance soon after purchase if the property is leased.
Up to 80% LTV on some programs, with loans from $150,000 and no stated maximum. The rent must cover the payment at the program minimum, usually 1.0x.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.