Mississippi offers some of the lowest home prices in the country, and investors in Southaven, Jackson, the Gulf Coast and college towns often start with short-term money. A DSCR rate-and-term refinance replaces it with long-term debt qualified on the rent.
In short: Yes, LendingStreet finances DSCR rate-and-term refinances on 1-8 unit investment properties in Mississippi, 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 Mississippi, the $150,000 minimum loan size and Gulf Coast wind insurance are the items that shape most files.
A rate-and-term refinance pays off the loan you have now and replaces it with a new one, changing the rate, the term or both, without pulling out equity. The new balance usually covers the payoff plus closing costs, and most programs allow only a small amount of cash back at closing. The exact allowance varies by program.
Because you are not taking cash out, some programs allow a higher ceiling than a cash-out refinance, up to 80% LTV on some programs. Qualification runs on the debt service coverage ratio, the property's rent divided by the new monthly payment including principal, interest, taxes, insurance and any HOA dues. The standard minimum is 1.0x.
Mississippi rental stock is mostly single-family brick ranches and newer subdivision homes, with duplexes in Jackson, Hattiesburg and the college towns. Prices are low, so many investors bundle work into one property worth enough to support the loan minimum. Rate-and-term refinances help investors exit hard money or a short-term bank loan.
In each case the goal is the same: a stable, long-term payment the rent can carry, without raising the balance. Keeping the loan close to the payoff also leaves more room under the ratio if taxes or insurance rise after closing.
Hard money and bridge loans are built to be replaced. Once the rehab is done and the unit is leased, a rate-and-term DSCR refinance pays off the short-term loan and sets a 30-year payment. Start the refinance a couple of months before maturity so appraisal and title do not run up against the deadline.
If you bought recently, expect the lender to look at your purchase price and documented improvements, not just the new appraisal. Seasoning requirements differ by program, and they can change how much of the after-repair value you can use.
Mississippi has no real estate transfer tax and no mortgage tax, so refinance costs are mostly recording, title, appraisal, attorney and lender charges. That keeps the cost of refinancing relatively low.
Attorneys are commonly involved in Mississippi closings. If you are moving title into an LLC at the same time, recording is usually simple, but confirm vesting with your closing attorney.
Mississippi assesses rental property at a higher ratio than homes owners live in, and homestead exemptions do not apply to rentals. That means the tax bill on a rental can be noticeably higher than a seller's homestead bill.
Gulf Coast properties in Harrison, Hancock and Jackson counties carry wind and hurricane exposure, and some owners rely on the state's wind pool. Flood zones are common along the coast and rivers. Get a current quote before applying.
This example is illustrative and not a quote. An investor owns a four-bedroom single-family rental in Southaven appraised at $265,000. The existing hard money loan used for the purchase and repairs has a payoff of $192,000, costs about $1,680 a month interest-only and matures in 4 months. Rent is $1,950 a month, and taxes, insurance and any HOA dues run $360 a month.
Rolling about $6,000 of closing costs into the loan gives a new balance of $198,000, or about 74.7% LTV, inside the 80% ceiling some programs allow. On a 30-year term, principal and interest is about $1,368, so the full payment is about $1,728 and the DSCR is about 1.13x. The short-term maturity is gone and the payment is fixed. The rent could fall by about $222 a month before the ratio hit 1.0x.
| Item | Amount |
|---|---|
| Appraised value | $265,000 |
| Existing loan payoff | $192,000 |
| Closing costs rolled in | $6,000 |
| New loan amount | $198,000 |
| Loan-to-value | 74.7% |
| Principal and interest (30 years) | About $1,368 |
| Taxes, insurance and HOA | $360 |
| Total monthly payment | About $1,728 |
| Monthly rent | $1,950 |
| DSCR | About 1.13x |
If you need equity out of the property, a cash-out refinance is the tool. If you only need to retire the existing loan, rate-and-term usually offers more leverage room and a lower balance.
The underwriting is the same, but the outcome is not. A larger cash-out balance raises the payment and lowers the ratio, so ask for both options on the same property and compare the payment, the DSCR and the cash you would net side by side.
| 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 |
Southaven, Olive Branch and Horn Lake in DeSoto County draw investors tied to Memphis jobs. Jackson and suburbs such as Madison and Brandon offer a range of prices. Gulfport and Biloxi have coastal rentals, and Hattiesburg, Oxford and Starkville have university demand. Because loans start at $150,000, lower-priced homes may not fit, while newer suburban homes often do.
Having these ready keeps the appraisal, title and underwriting moving, especially if a short-term loan is nearing maturity. Call (877) 298-1001 or use the form below to get a quote.
Yes. LendingStreet refinances non-owner-occupied 1-8 unit rentals in Mississippi with DSCR loans starting at $150,000, up to 80% LTV on some programs.
No. Mississippi has no real estate transfer tax or mortgage tax. Costs are mostly recording, title, appraisal, attorney and lender charges.
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.
Rentals are assessed at a higher ratio than homesteads and do not get homestead exemptions.
Seasoning varies by program. Recently purchased properties may be sized on purchase price plus documented improvements rather than the new appraised value.
DSCR loans start at $150,000. Lower-value homes may not support that at the program LTV.
Standard programs need at least 1.0x. Sub-1.0 DSCR programs exist, or you can lower the balance by bringing cash to closing.
Yes. LLC borrowers are standard on DSCR loans. Expect to provide the operating agreement, articles of organization and an EIN letter, and to sign for the loan personally.
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