St. Louis is known for its brick two-family and four-family flats, and a renovated four-family is one of the most common small rental buildings refinanced here. A DSCR rate-and-term loan qualifies it on the combined rent of every unit.
In short: LendingStreet offers DSCR rate-and-term refinances on 1-8 unit investment properties in the St. Louis area, replacing hard money, bridge debt or an existing loan with a long-term payment sized on rent. Rate-and-term goes up to 80% LTV on some programs, the standard minimum DSCR is 1.0x, and no W-2s or tax returns are required.
The City of St. Louis has dense brick housing in Tower Grove South, Bevo Mill, Dutchtown, Benton Park, Soulard, Shaw and Princeton Heights, much of it two- to four-unit flats. St. Louis County adds post-war single-family in Florissant, Affton and Lemay and higher-end homes in Kirkwood and Webster Groves; St. Charles County adds newer suburbs.
Healthcare, universities and a broad employer base support long-term rentals. Investors often buy flats needing full renovation with hard money or a local bank loan, then refinance once every unit is leased.
The property type and location shape both value and rent.
| Area | Typical rental stock | Refinance angle |
|---|---|---|
| Tower Grove South, Bevo Mill, Dutchtown | Brick two- and four-family flats | Refinance on combined rent after renovation |
| Benton Park, Soulard, Shaw | Historic brick homes and flats | Historic district rules on exterior work |
| North and south St. Louis County | Post-war single-family | Municipal occupancy inspections on new tenants |
| St. Charles County | Newer subdivisions | Replace adjustable or bridge loans |
With cash-out, you borrow more than you owe and keep the difference, up to 75% LTV. With rate-and-term, the new loan pays off what you owe and the closing costs, and the purpose is better terms rather than cash. That is why some programs allow up to 80% LTV on rate-and-term.
Both qualify the same way, on the DSCR: rent divided by principal, interest, taxes, insurance and HOA dues. The standard minimum is 1.0x, and sub-1.0 programs exist for properties where the rent falls a little short.
The City of St. Louis is independent of St. Louis County, and each has its own assessor. Missouri assesses residential property at a 19% assessment ratio and reassesses in odd-numbered years, so a renovated property may see a higher value at the next cycle. Budget on the current assessment and expect it to rise after a major rehab.
Missouri does not charge a mortgage recording tax, so refinance costs are mostly title, recording, appraisal and lender costs.
Many municipalities in St. Louis County require an occupancy inspection when a new tenant moves in, and the city has its own inspection and permit rules. Keep certificates current so the refinance is not held up.
Parts of the city are local historic districts with rules on windows, doors and exterior materials. If your appraisal depends on finished exterior work, get the approvals and close the permits first.
Brick flats in the city often have separate utility meters per unit, which keeps tenant-paid utilities off the owner's books and helps the ratio. If a building still has shared meters, the owner-paid utility cost is not part of the DSCR payment, but it affects real cash flow.
This example is illustrative and not a quote. An investor owns a Tower Grove South four-family flat on a maturing bank balloon. It appraises at $420,000, the payoff on the existing loan is $300,000, and estimated closing costs of $8,000 are rolled into the new loan, for a balance of $308,000, about 73.3% LTV. Rent is $3,600 a month.
Estimated principal and interest on a 30-year loan comes to about $2,101. Adding taxes of $455 and insurance of $230 gives a total payment of about $2,786, for a DSCR of about 1.29x, above the 1.0x standard minimum. Compared with the old loan, the monthly payment drops by about $199, and the balance now amortizes.
It helps to know the limits before the appraisal. At the same taxes and insurance, rent of about $2,786 would put the DSCR at 1.0x, and the current $3,600 rent would carry a loan of roughly $427,000 at that level. Anything well inside those numbers is a comfortable file.
| Item | Maturing bank loan (amortizing) | New DSCR loan |
|---|---|---|
| Appraised value | $420,000 | $420,000 |
| Loan balance | $300,000 | $308,000 |
| LTV | 71.4% | 73.3% |
| Principal and interest (or interest-only) | $2,300 | $2,101 |
| Taxes, insurance and HOA | $685 | $685 |
| Total monthly payment | $2,985 | $2,786 |
| DSCR at $3,600 rent | About 1.21x | About 1.29x |
The best time to start is when the work is finished, permits are closed and a tenant is signed, ideally with a couple of months left before the short-term loan matures. That leaves room for the appraisal and title work without paying an extension.
How long you must own before the lender uses the new value varies by program. Some go by the appraisal soon after a rehab; some limit the loan to cost plus documented improvements early on. A clean record of the rehab budget helps either way.
Vacancy at the time of refinance does not always stop the loan, since some programs use market rent from the appraisal. Still, a signed lease removes a common question and usually makes the file stronger.
Having these ready when you apply avoids most delays.
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us about the St. Louis-area rental, the existing loan and the lease, and we will check the ratio with realistic taxes and insurance before you order an appraisal.
Investors with several rentals can compare a single-property refinance with a blanket portfolio loan, which puts five or more properties on one closing and one payment.
You can also compare with our Missouri rate-and-term refinance page. Get a quote with the form below or call (877) 298-1001.
Yes. DSCR loans cover 1-8 unit properties, and a four-family qualifies on the combined rent of all four units.
If the municipality requires one for new tenants, have it in place. It shows the unit is leased legally.
Yes. We refinance 1-8 unit rentals across the City of St. Louis and St. Louis, St. Charles and Jefferson counties when rent and value support the loan.
It depends on the appraisal, title and how complete the file is. Starting with a full document package shortens the timeline.
DSCR loans start at $150,000 with no stated maximum. Larger balances get more review, and max LTV can vary by program.
Some programs use the appraiser's market rent estimate instead of a signed lease. Terms vary by program.
Yes. That is one of the most common uses of a rate-and-term refinance once the rehab is done and the property is leased.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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