Rental investor programs
Rate-and-Term Refinance for Rental Properties
A rate-and-term refinance replaces an existing rental loan with a new loan on different terms. Investors use it to move out of a bridge or hard-money loan, change the amortization, or stabilize the payment. The property still has to support the new loan.
At a glance
| Best for | Investors refinancing a bridge, hard-money, or short-term rental loan |
|---|---|
| Property types | Single-family rentals, 2-4 units, condos, townhomes |
| Loan purpose | Rate-and-term refinance |
| Term options | 5, 7, 10, or 30-year fixed |
| LTV | Up to 80% LTV; confirm with the investor |
| DSCR | 1.20+ typical |
| Credit | 680+ typical |
| Entity | LLC, corporation, or limited partnership |
| Documentation | Payoff, property income, entity docs, insurance, reserves |
| Close time | 30-45 days typical |
Who it fits
This program fits investors who already own a rental and want to change the debt structure, not pull cash. It is common after a bridge loan, a rehab, or a short-term acquisition loan.
- Refinancing out of a bridge or hard-money loan
- Moving to a longer amortization
- Stabilizing the payment after a renovation
- Cleaning up a short-term or balloon structure
What the investor reviews
The investor reviews the property's income, the payoff, the new LTV, credit, and reserves. If the property was recently renovated, the appraisal and rent support matter.
- Payoff and current loan terms
- Appraised value and market rent
- DSCR on the new loan
- Credit, reserves, and entity structure
- Seasoning and property condition
How the process works
We compare take-out options and flag prepayment, seasoning, and appraisal issues before you commit.
- Scenario review: current loan, value, rent, timeline
- Investor match: LTV, DSCR, seasoning
- Application and documents: payoff, entity, reserves
- Appraisal and underwriting
- Closing and funding
What to prepare
Rate-and-term files need a clean payoff and a clear income story.
- Current mortgage statement and payoff
- Rent roll or lease
- Entity documents and guarantor information
- Insurance declaration
- Reserves documentation
Frequently asked questions
When can I refinance a bridge loan?
Seasoning and stabilization requirements vary by investor. Some allow a refinance after a short holding period; others require more history.
Can I refinance a hard-money loan?
Yes, take-out financing is common. The investor reviews the payoff, appraisal, and DSCR.
What if the property is vacant?
Some investors use appraised rental income for a vacant property. Availability varies.
Will I pay a prepayment penalty?
The existing loan may have a penalty. Review the payoff; the new loan may also have a prepayment structure.
How long does it take?
30-45 days is typical. Payoff coordination and appraisal can extend the timeline.
What documents are needed?
Payoff, appraisal, entity documents, insurance, and reserves are common.
Related programs
Tesni, LLC is a U.S. business lending marketplace and broker, not a direct lender. We do not approve loans, fund loans, or set pricing. All credit decisions are made by third-party investors subject to their own underwriting and program availability. Guidelines, eligibility, and availability vary by investor and state.