Savannah's growth around the port and new manufacturing has pushed long-term rental demand well beyond the historic district. A DSCR rate-and-term refinance lets investors who rehabbed with short-term money move into a 30-year loan sized on that demand.
In short: Yes. A DSCR rate-and-term refinance from LendingStreet can pay off a hard money loan, a bridge loan or an existing mortgage on a Savannah-area rental and replace it with a 30-year option qualified on the property's rent. Programs go up to 80% LTV on some rate-and-term loans, start at $150,000 and require a 620 minimum credit score.
Savannah's rental stock ranges from historic homes in the Landmark District and the Victorian District to early 1900s houses in Thomas Square, the Starland District and Midtown, mid-century homes in Ardsley Park and the Eastside, and newer subdivisions in Pooler, Richmond Hill, Rincon and Garden City.
The Port of Savannah, Hunter Army Airfield and Fort Stewart, Gulfstream, the new automotive plant in Bryan County and SCAD all feed long-term rental demand. Investors often buy and renovate with hard money and refinance once a lease is signed.
Here is how the main areas tend to look for a refinance.
| Area | Typical rental stock | Refinance angle |
|---|---|---|
| Thomas Square, Starland District | Early 1900s homes and cottages | Rehab and refinance; check historic overlays |
| Midtown, Ardsley Park, Eastside | Mid-century single-family | Steady long-term demand; BRRRR candidates |
| Pooler, Rincon, Richmond Hill | Newer subdivisions | Military and port tenants; replace bridge debt |
| Landmark and Victorian districts | Historic homes and carriage houses | STVR limits; most refinances on long-term rent |
A DSCR rate-and-term loan takes out the debt already on the property, whether that is a hard money note, a bridge loan or an older mortgage, and replaces it with a long-term loan. You do not take equity out as cash, beyond small amounts some programs allow, so leverage can go up to 80% LTV on some programs.
The new loan is underwritten on the property, not your personal income. The lender divides rent by the full monthly payment, principal, interest, taxes, insurance and HOA dues, and looks for 1.0x or better on standard programs.
Investment property does not get the homestead exemption, so budget Chatham County, city and school taxes on the full assessed value. Assessments follow sale prices, so a recently bought property may see a higher assessment notice.
Georgia charges an intangible recording tax on long-term notes secured by real estate. On a refinance, how much applies can depend on the new balance and the lender. Ask the closing attorney for an estimate; Georgia closings are handled by attorneys.
Savannah limits non-owner-occupied short-term vacation rentals in many residential areas and caps them by ward in the historic district. If a property cannot hold a certificate, plan to refinance on a long-term lease.
Much of the area is low-lying, and flood zones are common near marshes and rivers. Flood insurance and wind coverage both count in the DSCR, so get quotes before applying.
In Pooler, Rincon and Richmond Hill, newer subdivisions often have HOA dues and covenants on leasing. Check the covenants for rental limits and include the dues in the payment. Older homes in Thomas Square and the Starland District can fall under historic overlays, so close out any exterior permits before ordering the refinance appraisal.
This example is illustrative and not a quote. An investor owns a Midtown single-family home renovated with a hard money loan. It appraises at $330,000, the payoff on the existing loan is $235,000, and estimated closing costs of $7,000 are rolled into the new loan, for a balance of $242,000, about 73.3% LTV. Rent is $2,400 a month.
Estimated principal and interest on a 30-year loan comes to about $1,651. Adding taxes of $300 and insurance of $190 gives a total payment of about $2,141, for a DSCR of about 1.12x, above the 1.0x standard minimum. Compared with the old loan, the monthly payment drops by about $499, and the balance now amortizes.
Run the numbers backward too. Rent would have to fall to about $2,141 for the ratio to reach 1.0x, and at $2,400 the property could carry roughly $280,000 before hitting 1.0x. That cushion is what lets you choose a balance with confidence.
| Item | Hard money loan (interest-only) | New DSCR loan |
|---|---|---|
| Appraised value | $330,000 | $330,000 |
| Loan balance | $235,000 | $242,000 |
| LTV | 71.2% | 73.3% |
| Principal and interest (or interest-only) | $2,150 | $1,651 |
| Taxes, insurance and HOA | $490 | $490 |
| Total monthly payment | $2,640 | $2,141 |
| DSCR at $2,400 rent | About 0.91x | About 1.12x |
Lenders differ on seasoning. On some programs, a renovated property can be refinanced on its new appraised value fairly soon; on others, the loan is limited to what you paid plus documented improvements until a set period passes.
Plan backward from your maturity date. Give yourself time for an appraisal, a rent analysis, title and insurance, and avoid letting a bridge or hard money note run into extension fees.
A unit that is not yet rented can sometimes be underwritten on market rent from the appraisal, depending on the program. A lease in hand at a supportable rent is still the simplest way to show the ratio.
Gather these before you request a quote.
Our investor loans are business-purpose loans on non-owner-occupied property. We look at the rent, the payoff, the value and the local costs, and show what balance the property supports at the 1.0x standard minimum.
When the refinance is one of several, ask about a blanket portfolio loan. Five or more rentals can share one loan, one closing and portfolio pricing.
More statewide detail is on our Georgia rate-and-term refinance page. Request a quote with the form below or call (877) 298-1001.
Only if it holds a valid short-term vacation rental certificate and the program allows it. Most Savannah refinances use long-term rent.
A closing attorney. They also calculate Georgia intangible recording tax and other recording costs.
Yes. We refinance 1-8 unit rentals across Chatham, Effingham and Bryan counties when rent and value support the loan.
The minimum is 620. Stronger credit and lower leverage can improve terms.
Yes. DSCR loans cover 1-8 units; maximum LTV can be lower on 5-8 unit properties and varies by program.
Usually the lower of the signed lease and the appraiser's market rent, though policies vary by program.
Yes. Starting early avoids extension fees and gives time for the appraisal and title work.
Many programs ask the owners of the borrowing LLC to sign for the loan personally. Your term sheet will spell it out.
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