Portland, Salem and Eugene investors often buy older houses with short-term money and refinance once the work is done. A DSCR rate-and-term refinance replaces that loan with long-term financing based on the rent.
In short: Yes, LendingStreet offers DSCR rate-and-term refinances on 1-8 unit investment property in Oregon, 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.
The idea is simple: trade the current loan for a better one. The new balance covers the payoff and closing costs, can reach up to 80% LTV on some programs (cash-out tops out), and any cash back is held to a small allowance set by the program.
Underwriting centers on the DSCR: rent divided by principal, interest, taxes, insurance and HOA dues. The standard minimum is 1.0x, with sub-1.0 programs for rentals just under that line. Minimum credit is 620, LLCs are standard, terms run up to 30 years, and you do not need W-2s or tax returns.
| 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) |
A bridge or hard money loan gets the property bought and fixed, but it is not meant to be held. The standard exit is to refinance into a DSCR loan once the unit is rented, rather than paying higher short-term interest or asking for an extension.
Oregon's rental stock includes older bungalows and small multifamily in Portland, Salem and Eugene, newer suburban construction in Hillsboro, Beaverton and Gresham, and homes in Bend and southern Oregon. Many investors add accessory dwelling units, which can add rent.
Oregon limits annual rent increases on most residential buildings more than 15 years old, and Portland has its own tenant rules, including relocation payments in some cases. Underwriting will use the current lease rent, so plan around what you can legally charge.
Oregon generally prohibits local real estate transfer taxes, with Washington County the main exception, and that tax applies to sales. A refinance usually does not trigger it. Expect lender's title insurance, county recording fees for the new deed of trust and escrow fees.
Oregon closings typically run through an escrow or title company, which handles the payoff, lien release and recording of the new deed of trust. Ask for an estimate early, and if you bought recently, ask whether a reissue rate applies on the title policy.
Because closing costs are usually rolled into the balance, they affect both the LTV and the ratio, so ask title for real numbers before you lock.
Oregon property taxes are based on assessed value, which is limited in how fast it can grow, so the tax bill often trails market value. Use the current bill. Wildfire risk in southern and central Oregon has pushed some insurance premiums up, and some carriers have pulled back, so get a quote early.
When a file is close to the line, the fix is usually on the expense side: shop the insurance, confirm the actual tax bill and check whether any special assessments are scheduled.
This example is illustrative and not a quote. An investor bought and renovated a Salem single-family rental with ADU using a hard money loan that now has a payoff of $325,000 interest-only, or about $3,115 a month in interest. The property now appraises at $460,000 and rents for $3,050 a month, with taxes and insurance of about $560 a month.
A rate-and-term loan of $334,000 covers the payoff plus $9,000 of closing costs, which is about 72.6% LTV, inside the 80% limit some programs allow. On 30-year amortization, principal and interest is about $2,301, so the total payment is about $2,861 and the DSCR is about 1.07x, 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 | $460,000 |
| Hard money payoff | $325,000 |
| Closing costs financed | $9,000 |
| New loan amount | $334,000 |
| Loan-to-value | About 72.6% |
| Principal and interest | About $2,301 |
| Taxes and insurance | $560 |
| Total monthly payment | About $2,861 |
| Monthly rent | $3,050 |
| DSCR | About 1.07x |
Programs differ on seasoning. If you closed on the property recently, some will use the after-rehab appraisal and others will base the loan on what you paid plus documented improvements. Because rate-and-term only needs to cover the payoff, the lower figure is often still enough.
Expect the appraisal to include a market rent estimate alongside the value. Underwriting compares it with your lease, and the figure it uses depends on the program.
The Portland metro is the state's main rental market, including Gresham, Beaverton and Hillsboro. Salem has steady demand from state government. Eugene has university-area demand. Medford and Grants Pass offer lower prices in southern Oregon.
Bend and the Oregon coast have active vacation rental markets, and many cities regulate short-term rentals. Confirm local rules before qualifying on nightly income.
Having these ready before you apply keeps the appraisal and underwriting moving.
Choose rate-and-term when you mainly want out of short-term debt or into a lower payment. Choose cash-out, up to 75% LTV, when you want to pull equity. If the ratio is short, a sub-1.0 program or finishing the lease-up may solve it. Leverage on 5-8 unit properties and larger balances 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 Oregon, starting at $150,000.
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.
Yes. LLC borrowers are standard. We will ask for the operating agreement, formation documents and good standing for the entity.
Oregon limits annual rent increases on most buildings more than 15 years old. The underwriter will use the current lease rent, so the ratio has to work at what you can legally collect.
It can. A legally permitted ADU with its own lease adds rent to the ratio. Have the permit and lease ready.
Yes. Residential DSCR programs cover 1-8 units. Maximum LTV may be lower on 5-8 units and varies by program.
Up to 80% LTV on some programs. Maximum LTV can be lower on 5-8 unit properties and larger balances, and it varies by program.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.