In Manchester, Nashua and the old mill cities, plenty of New Hampshire rentals are bought with hard money and brought back to life. A DSCR rate-and-term refinance swaps that short-term loan for long-term financing based on the rent.
In short: Yes, LendingStreet offers DSCR rate-and-term refinances on 1-8 unit investment property in New Hampshire, up to 80% LTV on some programs, qualifying on the property's rent instead of your income. It is the standard way to pay off a hard money, bridge or higher-rate loan and move into a long-term payment, with cash back limited to a small allowance. The rent has to cover the new payment at 1.0x on standard programs, the minimum credit score is 620, LLC borrowers are standard and loans start at $150,000.
A rate-and-term refinance replaces the loan you have now with a new one, usually to get a lower rate, a longer term or a fixed payment. The new balance is sized to pay off the existing loan plus closing costs, and it can go up to 80% LTV on some programs, compared with up to 75% on a cash-out. Cash back at closing is limited to a small amount set by the program.
The loan qualifies on the debt service coverage ratio, the property's rent divided by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Standard programs look for 1.0x or better, and sub-1.0 programs exist for rentals that fall a little short. There are no W-2s or tax returns, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available.
| Rate-and-term | Cash-out | |
|---|---|---|
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to borrower | Small allowance only | Equity above payoff |
| Typical goal | Lower rate or payment, exit short-term debt | Pull equity for the next deal |
| Qualifies on | Rent (DSCR) | Rent (DSCR) |
Short-term loans are built to be replaced. They are interest-only, priced higher and due on a short maturity. Once the rehab is finished and a tenant is signed, a rate-and-term DSCR loan pays off that balance and puts the property on a long-term amortizing payment.
New Hampshire's investor stock leans old: two- to four-family houses and small apartment buildings in Manchester, Nashua, Concord, Dover and Rochester, many built more than a century ago. Updating heat, electrical and windows is common, and hard money is a frequent way in.
Older multi-family buildings can raise questions about heating systems, oil tanks and lead paint. Have documentation of the work you completed ready, because it supports both the appraisal and the condition review.
New Hampshire's real estate transfer tax applies to transfers of property, so a refinance where the owner stays the same generally does not trigger it. If you are moving the property from your name into an LLC at the same time, ask your attorney or title company whether that transfer changes the answer.
Expect lender's title insurance, recording fees at the county registry of deeds and settlement charges. New Hampshire uses mortgages, and the closing agent will handle the payoff and discharge of the old one.
Your term sheet will show lender costs separately from title and government charges. Confirm the final figures with your title company or closing attorney.
New Hampshire has no general sales tax and no broad income tax on wages, and local property taxes fund much of government, so tax bills are often high. That tax line goes straight into the DSCR payment. Older buildings with oil heat or aging roofs can draw higher insurance quotes, so get a current one.
Every dollar of tax and insurance lowers the ratio the same way a higher rate would. If the numbers are tight, a better insurance quote or a corrected tax figure can be the difference between clearing 1.0x and falling short.
This example is illustrative and not a quote. An investor bought and renovated a Manchester three-family using a hard money loan that now has a payoff of $378,000 interest-only, or about $3,780 a month in interest. The property now appraises at $520,000 and rents for $4,200 a month, with taxes and insurance of about $1,150 a month.
A rate-and-term loan of $388,000 covers the payoff plus $10,000 of closing costs, which is about 74.6% LTV, inside the 80% limit some programs allow. On 30-year amortization, principal and interest is about $2,614, so the total payment is about $3,764 and the DSCR is about 1.12x, above the 1.0x standard minimum. The investor stops paying short-term interest and starts paying down principal, with no cash taken out.
| Item | Amount |
|---|---|
| Appraised value | $520,000 |
| Hard money payoff | $378,000 |
| Closing costs financed | $10,000 |
| New loan amount | $388,000 |
| Loan-to-value | About 74.6% |
| Principal and interest | About $2,614 |
| Taxes and insurance | $1,150 |
| Total monthly payment | About $3,764 |
| Monthly rent | $4,200 |
| DSCR | About 1.12x |
Seasoning varies by program. Some will refinance soon after purchase using the new appraised value; others want several months of ownership or cap the loan at purchase price plus documented improvements. On a rate-and-term refinance this matters less than on a cash-out, but it can still limit the loan if you bought recently.
The appraiser will also estimate market rent. Underwriting generally uses the lease rent, the market rent estimate or the lower of the two, depending on the program, so a signed lease at a realistic rent helps.
Manchester and Nashua are the main multi-family markets, with steady demand from workers commuting toward the Boston area. Concord, Dover, Rochester and Keene offer smaller-scale rentals at somewhat lower prices.
Portsmouth and the Seacoast have high prices and some short-term rental activity, and the Lakes Region and White Mountains have seasonal vacation rentals. Local zoning and STR rules vary by town, so confirm what is allowed.
Having these ready before you apply keeps the appraisal and underwriting moving.
If the property has gained a lot of value and you want to fund the next purchase, a cash-out refinance up to 75% LTV may fit better. If the rent does not yet cover the payment, finishing the lease-up first, or looking at a sub-1.0 DSCR program, is usually smarter than forcing the numbers. Larger 5-8 unit properties may also see lower maximum LTV, which varies by program.
Yes. Our investor loans are business-purpose loans on non-owner-occupied property, and we offer DSCR rate-and-term refinances on 1-8 unit rentals across New Hampshire, starting at $150,000.
Standard programs look for 1.0x, meaning rent at least equals the full payment. Sub-1.0 programs exist for rentals that fall slightly short.
No. The loan qualifies on the property's rent. You need a 620 or higher credit score, reserves and entity documents if you use an LLC.
Generally not when the owner stays the same, because the tax is tied to transfers. If you are also deeding the property into an LLC, ask your attorney or title company.
New Hampshire relies heavily on local property taxes, so bills are often high, and the full tax amount is part of the payment the rent has to cover.
Yes. LLC borrowers are standard. We will ask for the operating agreement, formation documents and good standing for the entity.
Yes. Residential DSCR programs cover 1-8 units. Maximum LTV may be lower on 5-8 units and varies by program.
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