St. Louis four-families, Kansas City bungalows and Springfield duplexes are common investor buys, and many begin with hard money. A DSCR rate-and-term refinance replaces that loan 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 Missouri, 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 Missouri, low closing taxes help, while city occupancy and rental permit rules in St. Louis and Kansas City are the items to check.
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.
Missouri rental stock includes brick two-family and four-family buildings in St. Louis, bungalows and older single-family homes in Kansas City, and duplexes in Springfield and Columbia. Investors buy, renovate with short-term money and refinance. Rate-and-term also helps investors exit a short-term bank loan with 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.
Missouri has no real estate transfer tax and no mortgage recording tax, so refinance costs are mostly recording, title, appraisal and lender charges. Missouri uses deeds of trust and title companies handle most closings.
If you move title into an LLC as part of the refinance, recording is usually simple, but confirm vesting and any local requirements with the title company.
St. Louis City requires occupancy permits for rental units in many cases, and Kansas City has a rental permit and inspection program. Lenders may ask for current permits. Older brick buildings may raise questions about roofs, tuckpointing and electrical.
Missouri property taxes are moderate and vary by county and city, and rentals pay full residential rates. Hail and tornado risk can affect insurance in much of the state, so get a current quote.
This example is illustrative and not a quote. An investor owns a brick four-family in St. Louis appraised at $360,000. The existing hard money loan used for the purchase and renovation has a payoff of $260,000, costs about $2,300 a month interest-only and matures in 3 months. Rent is $3,500 a month, and taxes, insurance and any HOA dues run $600 a month.
Rolling about $7,500 of closing costs into the loan gives a new balance of $267,500, or about 74.3% LTV, inside the 80% ceiling some programs allow. On a 30-year term, principal and interest is about $1,825, so the full payment is about $2,425 and the DSCR is about 1.44x. The short-term maturity is gone and the payment is fixed. The rent could fall by about $1,075 a month before the ratio hit 1.0x.
| Item | Amount |
|---|---|
| Appraised value | $360,000 |
| Existing loan payoff | $260,000 |
| Closing costs rolled in | $7,500 |
| New loan amount | $267,500 |
| Loan-to-value | 74.3% |
| Principal and interest (30 years) | About $1,825 |
| Taxes, insurance and HOA | $600 |
| Total monthly payment | About $2,425 |
| Monthly rent | $3,500 |
| DSCR | About 1.44x |
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 Missouri 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 |
St. Louis neighborhoods such as Tower Grove South, Dutchtown, Bevo Mill and Carondelet have many two- and four-family buildings. Kansas City areas such as Waldo, Brookside and the Northland offer single-family rentals. Springfield and Columbia have university demand, and Joplin and St. Joseph offer lower prices.
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 offers rate-and-term DSCR refinances on 1-8 unit investment properties in Missouri, from $150,000 with no stated maximum, qualified on the property's rent.
No. Missouri has no real estate transfer tax or mortgage tax. Costs are mostly recording, title, appraisal and lender charges.
Only a small amount on most programs, and the allowance varies by program. If you want to pull equity out, a cash-out refinance up to 75% LTV is the better fit.
Yes. Four-family buildings are standard residential DSCR collateral, and rent from all units counts.
Often, yes, but seasoning rules vary by program. Some use the new appraised value; others cap the loan near your cost basis if you bought recently.
Kansas City has a rental permit program, and lenders may ask for it. Keep it current.
Standard programs require a minimum of 1.0x, meaning rent covers the full payment. Sub-1.0 programs exist for properties that fall short, with tighter terms.
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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