A Spokane rehab bought in the fall usually finishes in spring, leases in summer and then has one more job to do: get off the short-term loan. A rate-and-term DSCR refinance is how that happens, and in Spokane the timing of the lease matters as much as the appraisal.
In short: LendingStreet offers DSCR rate-and-term refinances on Spokane rentals to pay off bridge loans, hard money, fix and flip loans or an existing mortgage with a long-term loan qualified on rent. Rate-and-term goes up to 80% LTV on some programs, loans start at $150,000, the standard minimum DSCR is 1.0x and the minimum credit score is 620. No W-2s or tax returns are required.
A rate-and-term refinance replaces an existing loan without taking significant cash out. The common Spokane reasons are below.
| Existing loan | Typical Spokane situation | Key documents |
|---|---|---|
| Fix and flip or hard money | Winter rehab finished, unit leased in spring or summer | Lease, final inspections, receipts |
| Bridge loan | Vacant building bought off-season, now leased | Rent roll, leases, payoff letter |
| Adjustable or balloon loan | Rate reset or maturity approaching | Current statement, note terms |
| Loan in personal name | Moving the rental into an LLC | Entity documents, current mortgage |
This example is illustrative and not a quote. An investor bought a Hillyard duplex the previous fall and renovated it over the winter with a short-term loan. The payoff is $270,000, and the interest-only payment is about $2,250 a month. The duplex appraises at $395,000, and the two units lease for $1,225 and $1,175, $2,400 a month.
A rate-and-term refinance of $277,000 covers the payoff and about $7,000 in closing costs, about 70% LTV. Estimated principal and interest is about $1,890. With taxes of $330 and insurance of $140, the total payment is about $2,360, a DSCR of about 1.02x.
The investor trades a short-term maturity date for a long-term payment and starts paying down principal.
The refinance is sized on the rent in place, so lease the units at market before you order the appraisal. A newly leased vacant unit can be set at market rent. Increases on existing tenants are limited under Washington's 2025 rent stabilization law for covered units and require advance written notice.
That makes the first lease after a rehab especially important. Setting it too low to fill the unit quickly can hold the property's rent below market for a long time. Advertise early, show the unit before the last finishes are complete, and price it against similar renovated units nearby.
Spokane's rental demand peaks in late spring and summer, when students, medical residents and relocating households sign leases. A rehab finished in late winter can often lease quickly in spring. A rehab finished in December may sit vacant until the market wakes up, which pushes the refinance back.
Check your short-term loan's maturity and extension terms against that calendar. Starting the refinance 45 to 60 days before maturity leaves room for the appraisal and escrow.
Spokane prices are high relative to rents, so a refinance at the full payoff can fall short of 1.0x. Options include paying down part of the balance at closing, a sub-1.0 DSCR program where it fits, or waiting until all units are leased at market.
Use the current Spokane County assessment, not the pre-renovation bill, since a renovated property may be reassessed at a higher value.
Sub-1.0 programs usually require more reserves or a lower loan amount, so compare the cost of paying down the balance with the cost of waiting a few months for a fully leased building. Extension fees on the short-term loan belong in that comparison too, along with the interest you keep paying while you wait.
If the appraisal comes in well above the payoff, a cash-out refinance up to 75% LTV may be possible, subject to seasoning and the rent test. Rate-and-term is simpler when the goal is to replace a loan, and it can allow higher leverage on some programs. Many Spokane investors refinance rate-and-term first and return for a cash-out later.
For five or more properties, a blanket portfolio loan can refinance them together with one payment.
Have these ready when you apply. Washington refinances close through escrow, so title and escrow will need some of the same items.
When a renovated property is sold or permitted work is completed, the Spokane County Assessor may update its value to reflect the improvements. A duplex taxed on its old condition can see a noticeably higher bill once the new value is applied, and the refinance should be underwritten on the expected bill, not the old one.
If you are not sure what the new assessment will be, estimate taxes using the appraised value and the combined levy rate for your area. Overestimating slightly is safer than being surprised after closing, when a higher escrow payment can quietly push the ratio down.
Insurance can move the other way. A renovation that replaced wiring, plumbing, the roof or the heating system often lowers the premium, so get a new quote that reflects the finished property instead of carrying the vacant or builder's risk policy into the refinance.
Send the address, current payoff, estimated value and rents. We will show you the new payment and ratio. Use the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property.
Up to 80% LTV on some programs, subject to the rent covering the payment at the program minimum.
After the work is complete and the units are leased at market. In Spokane that is often late spring or summer.
The loan uses the rent in place. Lease vacant units at market before the appraisal, since later increases on existing tenants are limited.
No. We qualify on the property rent and your credit, with a 620 minimum score.
You can pay down part of the balance, use a sub-1.0 program where it fits, or wait until all units are leased at market.
It depends on the appraisal and escrow. Start 45 to 60 days before your current loan matures.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. A rate-and-term refinance can pay off an owner-carry note. Bring the note, the payment history and the recorded deed of trust so escrow can arrange the payoff and release.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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