A lot of Fresno fourplexes and duplexes were financed with local bank loans that reset after five or seven years. When the reset arrives, so does a higher payment. A rate-and-term DSCR refinance can replace it with a 30-year schedule based on the rent.
In short: LendingStreet refinances 1-8 unit rentals in Fresno, Clovis and Fresno County with DSCR rate-and-term loans that pay off resetting bank loans, hard money, bridge loans and other existing debt, qualified on rent. Rate-and-term goes up to 80% LTV on some programs, loans start at $150,000 and 30-year terms are available. The goal is a lower or more stable payment without taking cash out.
Rate-and-term refinances in the Fresno area usually start with one of these.
Each of these has a built-in deadline or a payment that can change. Locking in a long-term schedule based on what the property earns removes that uncertainty and makes the rental easier to plan around.
This example is illustrative and not a quote. An investor owns a fourplex with a $455,000 balance on a bank loan that just reset to a higher payment of about $3,818 a month on a 25-year remaining schedule. Each unit rents for $1,450, for $5,800 a month, and the property appraises at $640,000.
A DSCR loan of $462,000, about 72% of value, pays off the bank loan and closing costs. Estimated principal and interest on a new 30-year loan is about $3,152. With $520 in taxes and $240 in insurance, the payment is about $3,912, down from about $4,578, and the DSCR is about 1.48x.
The lower payment in this example comes from a new 30-year schedule and current program terms, but every situation differs. Some owners find the new payment higher than their old one; for them the benefit is a fixed long-term schedule instead of another reset.
| Item | Bank loan after reset | DSCR refinance |
|---|---|---|
| Loan balance | $455,000 | $462,000 |
| Principal and interest | $3,818 | $3,152 |
| Taxes and insurance | $760 | $760 |
| Total monthly | $4,578 | $3,912 |
| Remaining term | 25 years, subject to bank terms | 30 years available |
Under Proposition 13, a California property is reassessed to its purchase price when it sells, and the base tax is 1% of assessed value plus voter-approved bonds and any special assessments. Refinancing is not a sale, so the assessed value generally stays the same. If you bought a few years ago, your tax bill reflects that price, which keeps the payment lower than a new buyer's would be and helps the ratio.
Keep in mind that a change in ownership can trigger reassessment. Moving a property from your own name into an LLC you control is often handled without reassessment under California rules, but confirm the specifics with your tax advisor before you deed the property.
Rate-and-term pays off existing debt and closing costs without significant cash to you, and it allows up to 80% LTV on some programs versus 75% on cash-out. If you also want equity for another purchase, compare it with our Fresno cash-out page, where PACE payoffs and net cash are covered.
Long-held Fresno rentals can have very low tax bills compared with today's values, which is part of why the ratio in the example is strong. The newer your purchase, the closer your tax bill will be to current prices.
If you bought with short-term money and renovated, refinance once the units are leased and any city rental registry requirements are met. Have permits for the work closed out, since unpermitted improvements, such as a garage conversion, may not count in the value. Some programs require a minimum ownership period before using the new appraised value instead of your cost; rules vary by program.
Bring the closing statement from your purchase, the rehab invoices and before-and-after photos. They help show the appraiser what changed and support the value used for the new loan.
Check the title report for PACE assessments, solar agreements and any old mechanics' liens from the rehab. PACE balances usually need to be paid off, which may increase the loan amount needed. Ask your contractors for lien releases when you pay them so the refinance closes cleanly.
Solar systems that are leased or financed may also need lender review. Send the agreement early so the title company can see whether a release or subordination is needed.
Confirm your landlord insurance will renew at a known premium, since California's market has tightened. If your rents are below market and the building is covered by the statewide rent cap, increases are limited, so the ratio is based on current leases. Turnover gives you the chance to lease a unit at market.
If the building has a unit that has turned over recently, a lease at the new market rent helps the ratio. Timing the refinance after a renewal or turnover can make a meaningful difference on a small building.
Confirm the policy names the new lender correctly before closing, since a wrong mortgagee clause is a common last-minute delay in California escrows. Your agent can update it once you have the loan details.
Rate-and-term refinances are available on 5-8 unit buildings too, though max LTV can be lower and varies by program. See our Fresno 5-8 unit page for how those buildings are underwritten.
A blanket portfolio loan is another route if you own five or more rentals and want to refinance them together on one closing.
Send the address, payoff statement, leases, tax bill and insurance through the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. We will compare your current payment with the refinance.
If you have a payoff deadline from the bank, include it so we can plan the timeline backward from that date.
Yes. A DSCR loan can pay it off and replace it with a 30-year term based on the rent.
Generally no. In California, a refinance does not trigger reassessment.
Up to 80% LTV on some programs, enough to pay off existing debt and closing costs.
Yes, once the property is leased. That is one of the most common uses.
Usually, yes. Include it in the payoff amount.
No. The loan qualifies on the property's rent.
Yes. LLC borrowers are standard.
No. These are business-purpose loans on non-owner-occupied property.
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