Wyoming investors in Cheyenne, Casper and Laramie often buy and update rentals with short-term money. A DSCR rate-and-term refinance replaces that loan with long-term financing based on the property's rent.
In short: Yes, LendingStreet offers DSCR rate-and-term refinances on 1-8 unit investment property in Wyoming, 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.
A rate-and-term refinance replaces the loan you have now with a new one, usually to get a lower rate, a longer term or a fixed payment. The new balance is sized to pay off the existing loan plus closing costs, and it can go up to 80% LTV on some programs, compared with up to 75% on a cash-out. Cash back at closing is limited to a small amount set by the program.
The loan qualifies on the debt service coverage ratio, the property's rent divided by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Standard programs look for 1.0x or better, and sub-1.0 programs exist for rentals that fall a little short. There are no W-2s or tax returns, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available.
| 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) |
Short-term loans are built to be replaced. They are interest-only, priced higher and due on a short maturity. Once the rehab is finished and a tenant is signed, a rate-and-term DSCR loan pays off that balance and puts the property on a long-term amortizing payment.
Wyoming's rental stock includes older single-family homes and small multifamily in Cheyenne, Casper and Rock Springs, student rentals in Laramie near the University of Wyoming, and higher-priced resort properties around Jackson. Energy towns like Gillette have rental demand tied to mining and drilling.
Rents in energy-driven towns can move with activity in the coal, oil and gas sectors. The appraiser's market rent estimate reflects current conditions, so build some cushion into the ratio.
Wyoming does not have a real estate transfer tax, which keeps refinance costs modest. Expect lender's title insurance, county recording fees for the new mortgage and settlement charges.
Your title company will handle the payoff and recording. Rural properties with acreage, wells or access easements may need extra title review.
Your term sheet will show lender costs separately from title and government charges. Confirm the final figures with your title company or closing attorney.
Wyoming has no state income tax and relatively low property taxes, which helps the ratio. Insurance is usually moderate, but hail and wind on the plains and wildfire risk in some mountain areas can affect quotes.
Every dollar of tax and insurance lowers the ratio the same way a higher rate would. If the numbers are tight, a better insurance quote or a corrected tax figure can be the difference between clearing 1.0x and falling short.
This example is illustrative and not a quote. An investor bought and renovated a Cheyenne single-family rental using a hard money loan that now has a payoff of $266,000 interest-only, or about $2,549 a month in interest. The property now appraises at $380,000 and rents for $2,500 a month, with taxes and insurance of about $360 a month.
A rate-and-term loan of $274,000 covers the payoff plus $8,000 of closing costs, which is about 72.1% LTV, inside the 80% limit some programs allow. On 30-year amortization, principal and interest is about $1,846, so the total payment is about $2,206 and the DSCR is about 1.13x, 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 | $380,000 |
| Hard money payoff | $266,000 |
| Closing costs financed | $8,000 |
| New loan amount | $274,000 |
| Loan-to-value | About 72.1% |
| Principal and interest | About $1,846 |
| Taxes and insurance | $360 |
| Total monthly payment | About $2,206 |
| Monthly rent | $2,500 |
| DSCR | About 1.13x |
Seasoning varies by program. Some will refinance soon after purchase using the new appraised value; others want several months of ownership or cap the loan at purchase price plus documented improvements. On a rate-and-term refinance this matters less than on a cash-out, but it can still limit the loan if you bought recently.
The appraiser will also estimate market rent. Underwriting generally uses the lease rent, the market rent estimate or the lower of the two, depending on the program, so a signed lease at a realistic rent helps.
Cheyenne, the state capital, has steady demand from state government, F.E. Warren Air Force Base and nearby Colorado commuters. Casper is the state's other main rental market. Laramie has student demand.
Jackson and Teton County have very high prices and limits on short-term rentals in many areas. Elsewhere, local rules vary. Confirm before relying on nightly income.
Having these ready before you apply keeps the appraisal and underwriting moving.
If the property has gained a lot of value and you want to fund the next purchase, a cash-out refinance up to 75% LTV may fit better. If the rent does not yet cover the payment, finishing the lease-up first, or looking at a sub-1.0 DSCR program, is usually smarter than forcing the numbers. Larger 5-8 unit properties may also see lower maximum LTV, which 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 Wyoming, starting at $150,000.
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.
Wyoming does not have a real estate transfer tax. You will still pay title insurance, recording fees and settlement charges.
Possibly, but prices are high and short-term rental options are limited in many areas, so the ratio often has to work on long-term rent.
Yes. LLC borrowers are standard. We will ask for the operating agreement, formation documents and good standing for the entity.
Yes. Residential DSCR programs cover 1-8 units. Maximum LTV may be lower on 5-8 units and varies by program.
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