Wichita, Topeka and the Kansas side of the Kansas City metro all have investors who bought with short-term money. A DSCR rate-and-term refinance replaces that loan with a long-term payment qualified on the rent.
In short: Yes, LendingStreet finances DSCR rate-and-term refinances on 1-8 unit investment properties in Kansas, up to 80% LTV on some programs, qualified on the property's rent with no W-2s or tax returns. The new loan pays off your existing hard money, bridge or higher-rate loan plus closing costs, with only a small amount of cash back allowed on most programs. Our investor loans are business-purpose loans on non-owner-occupied property, starting at $150,000 with a 620 minimum credit score. In Kansas, hail and wind insurance and the property tax bill are the lines that move the ratio most.
In a rate-and-term refinance, the new DSCR loan retires your existing debt and nothing more, apart from closing costs and, on most programs, a small amount of cash back. You are changing the price and shape of the debt, not the amount of equity you hold.
Leverage can reach up to 80% LTV on some programs, compared with up to 75% on a cash-out. The loan qualifies on the property's rent, not your W-2s or tax returns. The ratio of rent to the full new payment, including taxes, insurance and HOA dues, needs to be at least 1.0x on standard programs.
Kansas rental stock is mostly single-family ranches and split-levels, with duplexes and small multifamily in older parts of Wichita, Kansas City, Kansas and Topeka. Prices are moderate, which makes buy-rehab-refinance common. Investors in Johnson County suburbs also refinance out of higher-rate loans to lock a fixed 30-year payment.
Rate-and-term is also the cleaner choice when the property's rent only modestly exceeds the payment. Adding cash-out raises the balance and lowers the ratio, while a rate-and-term keeps the debt where it is and focuses on better terms.
Short-term loans are interest-only and come due quickly, which works during a rehab but not for a long-term hold. A rate-and-term DSCR refinance replaces that debt once the property is stabilized and leased.
Timing matters. Lenders consider how long you have owned the property when deciding whether to use the new appraised value or your cost basis, and that rule varies by program. Order the appraisal early and keep invoices and receipts for the work you did.
Kansas phased out its mortgage registration tax and replaced it with recording fees, and the state has no real estate transfer tax. Refinance costs are mostly recording, title, appraisal and lender charges, which keeps them relatively low.
If you are moving title into an LLC at the same time, Kansas deeds usually need a sales validation questionnaire at recording unless exempt. Confirm with the title company.
Hail and wind are frequent, and many Kansas policies use percentage deductibles for wind and hail. Roof age and material can drive the premium. Get a current quote and note the deductible.
Kansas property taxes are moderate to fairly high depending on county and school district, and rentals pay the full residential rate. Johnson County taxes and values run higher than Wichita, so use the actual bill.
This example is illustrative and not a quote. An investor owns a three-bedroom ranch rental in Wichita appraised at $235,000. The existing hard money loan used for the purchase and rehab has a payoff of $170,000, costs about $1,560 a month interest-only and matures in 4 months. Rent is $1,800 a month, and taxes, insurance and any HOA dues run $390 a month.
Rolling about $6,000 of closing costs into the loan gives a new balance of $176,000, or about 74.9% LTV, inside the 80% ceiling some programs allow. On a 30-year term, principal and interest is about $1,216, so the full payment is about $1,606 and the DSCR is about 1.12x. The short-term maturity is gone and the payment is fixed. The rent could fall by about $194 a month before the ratio hit 1.0x.
| Item | Amount |
|---|---|
| Appraised value | $235,000 |
| Existing loan payoff | $170,000 |
| Closing costs rolled in | $6,000 |
| New loan amount | $176,000 |
| Loan-to-value | 74.9% |
| Principal and interest (30 years) | About $1,216 |
| Taxes, insurance and HOA | $390 |
| Total monthly payment | About $1,606 |
| Monthly rent | $1,800 |
| DSCR | About 1.12x |
The two refinances use the same DSCR underwriting, but the limits differ. Here is how they line up on a typical 1-8 unit rental.
If you are unsure which fits, ask for a quote on each. The difference in loan amount, payment and DSCR on the same Kansas property usually makes the choice clear, and the form below can request either.
| Feature | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing loan and costs | Pay off loan and take equity |
| Maximum LTV | Up to 80% on some programs | Up to 75% |
| Cash at closing | Small allowance, varies by program | Up to the LTV limit |
| Minimum DSCR (standard) | 1.0x | 1.0x |
| Minimum credit score | 620 | 620 |
| Income documents | Rent only, no W-2s or tax returns | Rent only, no W-2s or tax returns |
Wichita is the state's largest rental market, with steady aviation and healthcare employment. Overland Park, Olathe, Shawnee and Kansas City, Kansas make up the Kansas side of the KC metro. Topeka offers lower prices, and Lawrence and Manhattan draw university renters, with Fort Riley near Manhattan adding military demand.
Most delays come from missing paperwork. Pull these together before you request a quote. Call (877) 298-1001 or use the form below to get a quote.
Yes. LendingStreet refinances non-owner-occupied 1-8 unit rentals in Kansas with DSCR loans starting at $150,000, up to 80% LTV on some programs.
No. Kansas phased out its mortgage registration tax and uses recording fees instead, and there is no state transfer tax.
Most programs allow a small amount of cash back at closing, but the limit varies. Taking more turns the loan into a cash-out refinance, which has a 75% LTV ceiling.
Insurance is part of the DSCR payment. Hail-driven premiums and percentage deductibles can lower the ratio, and a newer roof often helps.
Seasoning varies by program. Recently purchased properties may be sized on purchase price plus documented improvements rather than the new appraised value.
Yes. Manhattan and Junction City rentals with long-term leases are standard DSCR properties, as long as the loan is at least $150,000.
Standard programs need at least 1.0x. Sub-1.0 DSCR programs exist, or you can lower the balance by bringing cash to closing.
No. The loan qualifies on the property's rent, not your personal income. You still need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
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