Manchester investors often buy multi-families with short-term money: a hard money loan for a unit-by-unit rehab, a bridge loan for a half-empty building, or a local bank loan with a five-year term. Sooner or later each of those needs a long-term replacement.
In short: LendingStreet refinances 1-8 unit rentals in Manchester and nearby towns with DSCR rate-and-term loans that pay off existing debt without taking cash out, up to 80% LTV on some programs. The loan qualifies on the property's rent, with no W-2s or tax returns, a 620 minimum credit score and 30-year terms available. Since a refinance is not a transfer, New Hampshire transfer tax does not apply, and the main costs are the usual closing costs.
A rate-and-term refinance replaces your loan with a new one to change the payment, the term or the structure. You can roll in normal closing costs, but you do not take meaningful cash out. LTV limits are often higher than on a cash-out, up to 80% on some programs.
For Manchester multi-families, the usual goal is to replace interest-only short-term debt or a loan with an upcoming reset with a 30-year loan that the rents carry comfortably.
Because the loan qualifies on the building, not your personal income, it suits investors who own several properties, are self-employed or simply do not want to hand a bank two years of tax returns every time a loan matures. The question underwriting asks is whether the rent covers the payment.
These are the loans we see paid off most often in the city.
| Existing loan | Common situation | What to bring |
|---|---|---|
| Hard money after a rehab | Units renovated and re-leased | Completed work, leases, payoff letter |
| Bridge loan | Vacant units now leased | Leases, payoff and maturity date |
| Local bank loan with a reset or balloon | Five- or seven-year term ending | Note, statement, reset terms |
| Private or seller note | Lender wants to be paid | Note, payment history, payoff |
This example is illustrative and not a quote. An investor bought a three-family on the East Side with a short-term rehab loan that now has a balance of $395,000 and an interest-only payment of about $3,950 a month. After lead-safe work, new kitchens and separate heating systems, the units lease for $1,650 each, or $4,950 a month, with tenants paying heat. The property appraises at $560,000.
A rate-and-term DSCR loan of $400,000, about 71% of value, pays off the rehab loan and covers closing costs. Estimated principal and interest is about $2,729, and with taxes of $680 and insurance of $260, the total payment is about $3,669, a DSCR of about 1.35x. The monthly payment falls by about $281, and the loan amortizes over 30 years.
| Item | Before | After |
|---|---|---|
| Loan balance | $395,000 | $400,000 |
| Monthly payment | $3,950 interest-only | $3,669 with taxes and insurance |
| Term | Short-term, maturing | 30 years |
| DSCR at $4,950 rent | Not used | 1.35x |
Local banks in New Hampshire often finance multi-families with loans that run for five or seven years before the rate resets or the balance comes due. When that date approaches, the new payment may be unknown or the bank may want a new application with full personal financials. A DSCR refinance qualifies on the property's rent and offers 30-year terms, removing the reset from your planning.
Compare the full cost of refinancing with what your bank offers. If the bank terms are better, keep them; if not, the DSCR option is there.
Start the conversation several months before the reset date. An appraisal, title work and a review of leases take time, and it is much easier to compare options calmly than in the last few weeks before a balloon.
Many Manchester multi-family rehabs happen one unit at a time as tenants leave. A refinance works best when all units are finished and leased, so the appraiser sees full rents. If one unit is still under renovation, ask how your program counts it, or wait until it is leased.
Seasoning rules vary by program, so check how soon after purchase the new appraised value can be used.
If the appraisal comes in lower than you hoped, a rate-and-term refinance can still work at a lower LTV, as long as the new loan covers the payoff or you bring the difference to closing. That is a common outcome on older buildings where the appraiser finds fewer renovated comparables than expected.
Converting owner-paid oil or steam heat to separate tenant-paid systems is one of the most valuable upgrades in a Manchester multi-family. It does not enter the ratio directly on most programs, but it lowers your operating costs, which buyers and appraisers notice. Keep invoices and permits for the conversion to show the appraiser.
The same goes for other improvements that make a Manchester multi-family easier to own: rebuilt porches and stairs, updated electrical service, new roofs and lead-safe windows. Each one reduces risk for the next owner and for the insurance carrier, and a documented list helps support value.
Manchester's assessments, like those in every New Hampshire municipality, must be revalued at least every five years. Underwriting uses your current tax bill. If a revaluation raised your bill since you bought, include the new figure when you estimate the ratio, since taxes are one of the largest items in the payment here.
In the example above, taxes are about a fifth of the total payment. A significant increase after a revaluation can move the ratio, so build in a cushion rather than refinancing at the very edge of 1.0x.
Gather these items to keep the refinance moving.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the property, payoff, leases and tax bill, and we will size the refinance and show the new payment. If your maturity date is close, tell us on the first call so the appraisal and title can be scheduled around it. Call (877) 298-1001 or use the form below.
Up to 80% on some programs. Larger balances and 5-8 unit buildings may have lower limits.
No. The transfer tax applies when property changes hands, not when you refinance a property you own.
Often yes, once the work is complete and units are leased. Seasoning rules vary by program.
No. The loan qualifies on the property's rent.
Yes. A DSCR refinance can pay off the bank loan and replace it with a 30-year term.
Ask how your program counts it. A refinance is usually simplest once every unit is finished and leased.
Usually yes, within the LTV limit.
Yes, in Bedford, Goffstown, Hooksett, Auburn, Londonderry and other nearby towns, with a $150,000 minimum loan.
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