Refinancing from STR to LTR in Akron NOW!

Refinancing from STR to LTR: Your Authoritative Guide to Specialized Lenders

AKRON, OH – AUGUST 1, 2025: For savvy real estate investors, the flexibility to adapt to market shifts is a cornerstone of success. One of the most powerful strategies in your arsenal is the ability to pivot a short-term rental (STR) property into a long-term rental (LTR). But this transition requires a specialized financing partner. If you’re searching for lenders that specialize in refinancing from STR to LTR, you’ve come to the right place. This comprehensive guide will equip you with the knowledge and resources to make this transition seamless and profitable, with a special focus on the thriving Akron, Ohio market.

Refinancing from STR to LTR:

The Strategic Advantage of Pivoting to LTR

The move from STR to LTR isn’t just a reaction to a changing market; it’s a proactive strategy to secure stable, long-term cash flow. STRs, while often lucrative, are susceptible to seasonal fluctuations, economic downturns, and increasingly restrictive local regulations. By refinancing to an LTR, you lock in consistent monthly income, reduce operational demands, and build a more resilient portfolio.

This is where a specialized lender becomes indispensable. You need a partner who understands that your STR’s robust income history, not your personal W-2, is the true measure of a property’s financial strength.

Introducing the DSCR Loan: Your Bridge to Stability

The ideal financial product for this transition is the Debt Service Coverage Ratio (DSCR) loan. This non-QM (non-qualified mortgage) loan is designed for investors and is a game-changer for those refinancing from STR to LTR.

Current Market Insights & Requirements (August 2025)

As of August 2025, DSCR loan interest rates for a refinance typically range from 8.5% to 10.5%. However, this is a broad range, and your specific rate is influenced by several critical factors:

• LTV (Loan-to-Value): The higher the down payment (and thus, the lower the LTV), the lower your interest rate will be.
• DSCR Score: This is the most important factor. A DSCR of 1.25 or higher is generally considered strong, while a DSCR below 1.0 may still be approved at a higher rate. A DSCR is calculated by dividing the property’s projected rental income by its mortgage payment (including PITI).
• Credit Score: While DSCR loans don’t rely on your personal income, a strong credit score (typically 660+) will secure a better rate.
• Property Type: Rates can vary based on the property type (e.g., single-family, multifamily, short-term rental).

Key Requirements & Investor-Friendly Features:

• No Personal Income Check: The primary focus is on the property’s cash flow, not your personal income. This is a huge benefit for self-employed investors or those with complex financial profiles.
• Entity Requirements: Loans are often made to an LLC, corporate entity, or partnership, providing a layer of legal protection.
• Property Types: These loans are versatile and can be used for single-family homes, 2-4 unit properties, and even larger multifamily assets.

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

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If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

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Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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GHC Funding: Your Premier Partner for the Pivot

When it comes to navigating the complex world of investor financing, especially the nuanced shift from STR to LTR, you need a lender with deep expertise. This is where GHC Funding stands apart. GHC Funding has a proven track record as lenders that specialize in refinancing from STR to LTR, offering flexible underwriting and a streamlined process tailored to the modern investor.

Our team understands the unique challenges of this transition and is uniquely positioned to help you succeed. We offer not only DSCR loans, but a full suite of financing solutions for your portfolio, including SBA 7a loans, SBA 504 Loans, Bridge Loans, and a variety of Alternative Real Estate Financing options. Our goal is to be your single-source partner for all your investment needs.

Tapping into the Akron, Ohio Market: A Geo-Targeted Strategy

Akron, Ohio, often called the “Polymer Capital of the World,” presents a compelling opportunity for real estate investors. Its strong economic drivers, including major employers like Goodyear, Summa Health, and Akron Children’s Hospital, create a steady demand for both long-term and short-term rentals. To maximize your investment, you need to understand the local landscape.

Promising Neighborhoods and Investment Scenarios:

• Highland Square (44303): Known for its artsy, walkable vibe, this neighborhood is ideal for multifamily properties or single-family homes targeting young professionals and artists who want a vibrant community.
• Merriman Valley (44313): Nestled along the Cuyahoga River, this area appeals to families and outdoor enthusiasts. It’s a great location for single-family homes where you can secure a reliable long-term tenant.
• Firestone Park (44301): With its rich history and affordable housing, this neighborhood is perfect for acquiring buy-and-hold rental properties, providing consistent cash flow and long-term appreciation potential.

For deeper insights into the Akron market, consult these high-quality local resources:

• Akron Canton Real Estate Investors Association (ACREIA): www.acreia.org – A great resource for networking and local market knowledge.
• Redfin Akron Housing Market Data: www.redfin.com/city/244/OH/Akron/housing-market – Stay up-to-date on median home prices and market trends.
• Ohio Department of Commerce, Division of Real Estate & Professional Licensing: https://com.ohio.gov/divisions-and-programs/real-estate-and-professional-licensing – The official regulatory body for Ohio real estate.
• Akron Metropolitan Housing Authority (AMHA): www.summitdjfs.org/outreach/amha.html – A key local agency for understanding housing needs and programs.

Test Your Ohio Investor Prowess!

Ohio, often called the "Buckeye State," is a diverse and strategically important state in the American Midwest. Known for its strong manufacturing heritage, growing tech sector, and significant role in American history, Ohio offers a stable and attractive real estate market for investors. If you're considering expanding your portfolio in this region, especially with flexible financing options like no income verification rental property loans for new investors, understanding the state's key characteristics is a valuable asset.

How well do you know the heart of it all? Take our quick quiz about Ohio!

Start Quiz

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1. What is the official nickname of Ohio, derived from a common tree found in the state? A) The Corn State B) The Buckeye State C) The Cedar State D) The Cardinal State

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2. What is the capital city of Ohio, which is also its most populous city? A) Cleveland B) Cincinnati C) Columbus D) Toledo

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3. Ohio borders which of the Great Lakes to its north? A) Lake Huron B) Lake Superior C) Lake Michigan D) Lake Erie

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4. Ohio is famously known as the "Birthplace of Aviation" due to which historical figures? A) Charles Lindbergh B) Amelia Earhart C) The Wright Brothers D) Neil Armstrong

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5. Which major Ohio city is home to the Rock and Roll Hall of Fame? A) Columbus B) Cleveland C) Cincinnati D) Dayton

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6. Ohio's economy has strong ties to manufacturing. Which of these industries has historically been, and continues to be, a major part of its manufacturing sector? A) Textile production B) Automobile and rubber/plastics C) Seafood processing D) Gold mining

Page 7 of 7

7. How many U.S. Presidents were born in Ohio, earning it the nickname "Mother of Presidents"? A) 3 B) 5 C) 7 D) 9

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Q&A: Your Top Questions Answered

1. What exactly is a DSCR loan and how does it differ from a traditional mortgage?

A DSCR loan is a non-QM loan for real estate investors that qualifies a property based on its rental income, not the borrower’s personal income. A traditional mortgage, by contrast, relies heavily on your personal debt-to-income (DTI) ratio.

2. My STR has a great income history. Will that help with a DSCR refinance?

Yes, absolutely. The income from your STR is a strong indicator of the property’s cash-flow potential. Lenders like GHC Funding can use this data to determine the property’s viability for a DSCR loan.

3. What DSCR ratio do I need to qualify?

Most lenders prefer a DSCR of 1.20 or higher. A DSCR above 1.0 means the property’s rental income covers the mortgage payment, which is a great sign for lenders. At GHC Funding, we offer flexible underwriting and may be able to work with lower ratios on a case-by-case basis.

4. Can I use a DSCR loan for a 2-4 unit property in Akron?

Yes, DSCR loans are perfect for multi-unit properties. They allow you to scale your portfolio without the DTI limitations of conventional loans.

5. What are the advantages of working with a specialized lender for this type of refinance?

A specialized lender, like GHC Funding, has a deep understanding of the investor mindset and the intricacies of DSCR underwriting. We can provide faster closings, more flexible terms, and a partnership that goes beyond a single transaction. We understand the specific nuances of refinancing an STR to an LTR.

6. Do I need to be a large-scale investor to qualify?

Not at all. DSCR loans are available to both new and experienced investors. As long as the property’s cash flow supports the debt, you have a viable path to financing.

7. What is the process for a DSCR refinance?

The process is streamlined. You provide documentation on the property and its income (like AirBNB or VRBO statements). The lender assesses the property’s market rent and its DSCR. Once approved, the closing process is often much faster than a traditional loan.

Take Control of Your Portfolio Today

Don’t let market uncertainty dictate your real estate strategy. Take control by pivoting your STR to a stable LTR, and partner with a lender who understands your unique needs.

Ready to secure your long-term wealth in the Akron, Ohio market? Contact the experts at GHC Funding today.

Visit us at www.ghcfunding.com or call us at 833-572-4327 to start your refinancing journey.

Ready to secure your long-term wealth in the Akron, Ohio market?

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

At GHC Funding, we are commercial finance specialists who guide real estate investors and business owners through the world of alternative lending. Our primary focus is on securing the right capital for your specific goals, whether that's a cash-flow-based DSCR loan for your rental portfolio, an SBA loan to grow your company, or a bridge loan to close a deal quickly and efficiently.

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