Scranton's doubles and older two- and three-family homes are some of the lowest-cost rental buildings in the Northeast. Investors who buy and rehab them with short-term money often find the rent supports a long-term loan comfortably.
In short: Yes. LendingStreet refinances 1-8 unit rentals in the Scranton and Wilkes-Barre area with DSCR rate-and-term loans that pay off hard money, a bridge loan or an existing mortgage, up to 80% LTV on some programs. The loan qualifies on the property's rent, not your tax returns, with a 620 minimum credit score, LLC borrowers and 30-year terms available.
The Scranton and Wilkes-Barre area is full of wood-frame homes built for mining and rail workers: side-by-side doubles, two-family stacked homes and older single-family houses in the Hill Section, Green Ridge, West Side and South Side, plus Dunmore, Old Forge, Pittston and Wilkes-Barre.
Hospitals, the University of Scranton and Marywood, logistics warehouses along the interstate corridors, and commuters priced out of New York and New Jersey support rental demand. Prices are low enough that many investors renovate with hard money and refinance quickly into a DSCR loan.
Each part of the Scranton and Wilkes-Barre area brings a different refinance profile.
| Area | Typical rental stock | Refinance angle |
|---|---|---|
| West Side, South Side | Doubles and two-family homes | Low prices; strong ratios once both units lease |
| Hill Section, Green Ridge | Larger older homes, some converted | Student and professional tenants; confirm unit count |
| Dunmore, Old Forge, Pittston | Single-family and doubles | Replace hard money after renovation |
| Wilkes-Barre and Kingston | Older multi-unit and doubles | Similar stock; separate county tax system |
A rate-and-term refinance replaces the loan you have with a new one, without taking equity out as cash beyond small amounts allowed by the program. The new balance covers the payoff of the existing loan plus closing costs. The goal is a lower payment, a fixed rate in place of an adjustable one, or a 30-year term in place of a short-term interest-only loan.
Because it pulls no equity out, rate-and-term can go up to 80% LTV on some programs, higher than the 75% cash-out limit. Qualification runs on the debt service coverage ratio: monthly rent divided by the full payment, including principal, interest, taxes, insurance and any HOA dues.
Scranton-area tax bills combine county, city or borough and school district taxes, and the combined rates are high relative to property values. Lackawanna County has relied on old base-year assessments for a long time, and reassessment has been under way or discussed, so check the current assessment and budget conservatively.
Pennsylvania's realty transfer tax applies to deeds, not to a refinance of the same owner. Refinance costs are mostly title, recording, appraisal and lender costs.
The City of Scranton and many surrounding municipalities require rental registration and inspections. Have the registration current before you refinance, because open code issues can delay closing.
Much of the area sits over old coal mines. Pennsylvania offers state mine subsidence insurance, which many owners carry. If you do, include the premium in the DSCR payment.
This example is illustrative and not a quote. An investor owns a West Side side-by-side double renovated with a hard money loan. It appraises at $185,000, the payoff on the existing loan is $128,000, and estimated closing costs of $5,000 are rolled into the new loan, for a balance of $133,000, about 71.9% LTV. Rent is $1,950 a month.
Estimated principal and interest on a 30-year loan comes to about $907. Adding taxes of $450 and insurance of $140 gives a total payment of about $1,497, for a DSCR of about 1.30x, above the 1.0x standard minimum. Compared with the old loan, the monthly payment drops by about $268, and the balance now amortizes.
Two quick stress tests are worth running on any Scranton refinance. If the appraiser's market rent came in at $1,497 instead of $1,950, the ratio would sit right at 1.0x. And holding everything else the same, this rent supports a balance of roughly $199,000 at 1.0x, which shows how much room the file has.
| Item | Hard money loan (interest-only) | New DSCR loan |
|---|---|---|
| Appraised value | $185,000 | $185,000 |
| Loan balance | $128,000 | $133,000 |
| LTV | 69.2% | 71.9% |
| Principal and interest (or interest-only) | $1,175 | $907 |
| Taxes, insurance and HOA | $590 | $590 |
| Total monthly payment | $1,765 | $1,497 |
| DSCR at $1,950 rent | About 1.10x | About 1.30x |
Seasoning varies by program. Some programs will use the new appraised value soon after a renovation; others cap the loan at the purchase price plus documented improvements for the first several months. Keep receipts, permits and before-and-after photos.
Start the refinance well before a hard money or bridge loan matures. Extension fees are expensive, and appraisal, title and underwriting take time. A signed lease, or a market rent estimate from the appraiser, is what the DSCR is built on.
If the property is still being leased up, some programs can use the appraiser's market rent estimate instead of a signed lease, but terms may differ. A signed lease at or above market rent is the cleanest path.
A complete file keeps the appraisal and underwriting on schedule.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, current payoff, rent and what you want to improve, whether that is payment, term or getting off a maturity date. We run the DSCR at a few balances and come back with options, including sub-1.0 programs where they fit.
If you own five or more rentals, a blanket portfolio loan can refinance them together under one loan with one payment, qualified on the portfolio's combined cash flow.
For statewide details, see our Pennsylvania rate-and-term refinance page. Use the form below or call (877) 298-1001.
Yes. A side-by-side double on one parcel is treated as a two-unit property, and the loan qualifies on the combined rent of both units.
Many owners do, and it is worth considering over mined areas. If you carry it, the premium counts in the DSCR payment.
Yes. We refinance 1-8 unit rentals in Lackawanna and Luzerne counties when rent and value support the loan.
Up to 80% LTV on some programs, enough to pay off the existing loan and closing costs. The rent also has to cover the new payment at the program minimum.
No. The loan qualifies on the property's rent. You need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
You can lower the balance, or look at sub-1.0 DSCR programs, which accept rent slightly below the payment on some files.
Yes. LLC borrowers are standard on DSCR loans, and you sign for the loan personally where the program requires it.
It depends on the goal. Rate-and-term allows higher leverage on some programs and focuses on terms; cash-out lets you take equity out up to 75% LTV.
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