A lot of Jackson-area rentals start life on short-term money: a flip loan that turned into a hold, a bridge loan on a fourplex during lease-up, or a seller-financed note with a balloon. A rate-and-term refinance replaces that loan with a long-term one built on the rent.
In short: LendingStreet refinances 1-8 unit rentals across the Jackson metro into DSCR loans that pay off hard money, bridge or existing mortgages, with up to 80% LTV on some rate-and-term programs and 30-year terms available. Qualification is based on the property's rent, not personal income, with a 1.0x standard minimum DSCR and a 620 minimum credit score.
A rate-and-term refinance pays off the existing loan and closing costs without taking significant cash out. In the Jackson metro, the most common cases are:
The goal is usually stability: a predictable payment, no maturity date hanging over the property, and a loan that qualifies on the rent you are actually collecting.
This example is illustrative and not a quote. An investor owes $296,000 on a short-term interest-only loan on a Flowood triplex, paying about $2,590 a month in interest plus taxes and insurance. All three units are now leased at $1,265, or $3,795 a month.
The triplex appraises at $405,000. A new DSCR loan of $303,800 covers the payoff and about $7,800 in closing costs, about 75% LTV. Estimated principal and interest is about $2,124. With taxes of $410 and insurance of $300, the payment is about $2,834 and the DSCR is about 1.34x. The loan now amortizes instead of sitting at a balloon.
| Item | Before | After |
|---|---|---|
| Loan balance | $296,000 | $303,800 |
| Loan type | Short-term, interest-only | 30-year amortizing DSCR |
| Monthly loan payment | $2,590 | $2,124 |
| Taxes and insurance | $710 | $710 |
| Total monthly payment | $3,300 | $2,834 |
| DSCR at $3,795 rent | About 1.15x | About 1.34x |
Rate-and-term programs can go up to 80% LTV on some programs; cash-out tops out at 75% LTV. If your goal is to get out of a short-term loan with the lowest payment, rate-and-term is usually the cleaner path. If the property has gained a lot of value and you want capital for the next deal, compare it with a cash-out refinance.
A rate-and-term refinance can also include modest closing costs in the new loan, as in the example above. The exact limit on cash back to the borrower varies by program.
Rate-and-term refinances also tend to have fewer seasoning hurdles, which matters when you want out of a short-term loan soon after finishing the work.
The new loan is underwritten on rent, so signed leases matter. On a property you just finished, have leases in place and deposits documented. The appraiser will also estimate market rent; in Jackson that estimate can vary sharply between neighborhoods, so local rental comparables help.
For a Flowood, Pearl or Brandon property, appraisers can usually find enough rental comparables nearby. For a city property, especially in neighborhoods with fewer recent rentals, provide your own comparables: listings, signed leases on similar units and any property manager rent survey.
If a property manager handles the units, a current rent roll from the manager is also useful.
If the county has not yet reassessed a property you renovated, the tax bill may rise later. Mississippi uses a 15% assessment ratio for rentals, so budget on the post-renovation value. For insurance, a new roof and updated systems from the renovation can help the premium, so provide that documentation to the carrier.
Flowood, Pearl and Brandon sit in Rankin County, while Jackson and Clinton are mostly in Hinds County, so the same rent can produce different ratios depending on which county bill applies.
Start the refinance before your short-term loan matures, ideally 60 to 90 days ahead. Extension fees on maturing loans add up, and appraisals, title work and insurance all take time. If the property is not fully leased yet, ask whether an extension or a lower loan amount makes more sense.
If the old loan was a seller-financed note, read the note for any notice requirements and ask the seller for a written payoff figure early. Private notes sometimes take longer to get a payoff letter than institutional loans.
Sometimes a newly renovated Jackson rental appraises lower than expected or the rent comes in below the plan. You have a few options.
Payoff statement, signed leases, renovation scope and receipts if recent, insurance quote, county tax bill and LLC documents.
If the units are newly leased, include the deposit records and the first month's rent receipts. They help show the leases are real and the rent is being collected.
Use the form below or call (877) 298-1001 with the address, payoff amount and current rents. Our investor loans are business-purpose loans on non-owner-occupied property. See our Mississippi rate-and-term page for statewide details.
If you are not sure whether rate-and-term or cash-out is the better choice, we can quote both so you can compare the payment, the ratio and the cash at closing side by side.
Yes. That is one of the most common uses, once the property is finished and leased. Start the process before the short-term loan matures. Signed leases and a payoff letter are the two key documents.
Up to 80% LTV on some programs, enough to cover the payoff and closing costs. The final amount depends on the appraisal and the rent.
Signed leases make the strongest file. Some programs can use market rent, but leased units are better. Vacant units lower the qualifying rent.
You may need to bring cash to closing or consider a different loan amount. Strong local comparables help. You can also wait and refinance after more leasing history.
Yes. 1-8 unit rentals qualify on the combined rent. Fourplexes and 5-8 unit buildings are also eligible.
Timelines depend on the appraisal and title. Start well before your current loan matures. Appraisals in the metro usually take a week or two to schedule and complete.
No. Our investor loans are business-purpose loans on non-owner-occupied property. If you are refinancing a home you live in, this program is not the right fit.
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