In Morgantown, the Eastern Panhandle and the river cities, West Virginia investors often buy older houses with short-term money and fix them up. 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 West Virginia, 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.
With a rate-and-term refinance, the new loan pays off the old one and covers closing costs, and that is about it. You are not pulling equity out, so programs allow higher leverage: up to 80% LTV on some programs, versus up to 75% for cash-out. Any cash you receive at closing is capped at a small amount that varies by program.
Qualification runs on the property, not your income. The debt service coverage ratio compares monthly rent with the new payment, including taxes, insurance and HOA dues, and standard programs want at least 1.0x. You need a 620 or higher credit score, but no tax returns or W-2s, and the loan can close in your LLC on a 30-year term.
| 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) |
Hard money and bridge loans are interest-only and short, and the clock keeps running after the work is done. The usual exit is a refinance into a DSCR loan once the property is leased, which turns a maturity date into a 30-year payment.
West Virginia's rental stock is mostly older single-family homes and small multifamily, with frame houses in Charleston, Huntington, Parkersburg and Wheeling, student rentals in Morgantown, and newer suburban homes in the Eastern Panhandle around Martinsburg and Charles Town.
Lower prices in many West Virginia towns mean a single house may not reach the $150,000 minimum loan size. A duplex, fourplex or several rentals refinanced together can bring the loan into range.
West Virginia's real estate excise tax applies to deeds on a sale, so a refinance where the owner stays the same usually avoids it. Expect lender's title insurance, county recording fees for the new deed of trust and settlement charges.
Your title company or closing attorney will handle the payoff and record the new deed of trust. Older properties in rural counties can have title gaps or old mineral rights reservations, so ask title to flag anything unusual early.
Get a written closing estimate early, since these items can usually be financed into the new loan as long as the total stays within the program's LTV.
West Virginia property taxes are relatively low, and non-owner-occupied residential property is generally taxed in a higher class than owner-occupied homes. Use the investor tax bill. Many towns sit in river valleys, so flood zones are common, and a required flood policy counts in the payment.
Lenders escrow these costs and count them in the payment, so an outdated tax bill or a stale insurance quote can make the ratio look better than it will be. Use current figures from the start.
This example is illustrative and not a quote. An investor bought and renovated a Martinsburg-area duplex using a hard money loan that now has a payoff of $223,000 interest-only, or about $2,137 a month in interest. The property now appraises at $320,000 and rents for $2,450 a month, with taxes and insurance of about $430 a month.
A rate-and-term loan of $231,000 covers the payoff plus $8,000 of closing costs, which is about 72.2% LTV, inside the 80% limit some programs allow. On 30-year amortization, principal and interest is about $1,576, so the total payment is about $2,006 and the DSCR is about 1.22x, 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 | $320,000 |
| Hard money payoff | $223,000 |
| Closing costs financed | $8,000 |
| New loan amount | $231,000 |
| Loan-to-value | About 72.2% |
| Principal and interest | About $1,576 |
| Taxes and insurance | $430 |
| Total monthly payment | About $2,006 |
| Monthly rent | $2,450 |
| DSCR | About 1.22x |
How soon you can refinance depends on the program. Some use the new appraised value right away, while others look at purchase price plus documented rehab costs until you have owned the property for a set period. Rate-and-term loans tend to be more flexible here than cash-out.
Rent is usually taken from the signed lease and checked against the appraiser's market rent estimate. A lease well above market may be cut back to the estimate, so price the lease realistically.
Morgantown has steady student and healthcare demand from West Virginia University. The Eastern Panhandle draws commuters toward the Washington, D.C. area and has newer housing. Charleston and Huntington offer low prices and older stock.
Parkersburg, Wheeling and smaller towns have the lowest entry prices, which can produce strong rent relative to value but small loans. Check the $150,000 minimum before you start.
Having these ready before you apply keeps the appraisal and underwriting moving.
Rate-and-term is the right tool when the goal is a lower, longer payment. If you want equity out, a cash-out refinance up to 75% LTV is the better fit. If a unit is still vacant, it often pays to finish leasing before you apply. On 5-8 unit buildings, maximum LTV can be lower and 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 West Virginia, starting at $150,000.
Only a small amount set by the program. If you want to pull equity out, a cash-out refinance up to 75% LTV is the better option.
It depends on the program. Some use the new appraised value soon after purchase; others base the loan on purchase price plus documented improvements until a seasoning period passes.
Generally not. It is tied to deeds on a sale, so a refinance where the owner stays the same usually avoids it.
In river valley towns, yes. If the property is in a special flood hazard area, flood insurance is required and the premium counts in the ratio.
Standard programs look for 1.0x, meaning rent at least equals the full payment. Sub-1.0 programs exist for rentals that fall slightly short.
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.
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