Creative financing solution needed in KCMO

[Wouter Erwee]

I have two SFH in KCMO that I need to refinace out of hard money loans into a 30 year product. Each tenanted at $1k. They recently appraised at $125k and my loans are about $100k. The lender did not allow me to roll the closing costs into the loan, and needed about $15k of closing costs for each house. I unfortunately can do that right now.

Looking for someone that is a little bit more flexible on LTV with some creative options.

Any thoughts or recs?

[Jay Hurst]

Quote from @Wouter Erwee:

I have two SFH in KCMO that I need to refinace out of hard money loans into a 30 year product. Each tenanted at $1k. They recently appraised at $125k and my loans are about $100k. The lender did not allow me to roll the closing costs into the loan, and needed about $15k of closing costs for each house. I unfortunately can do that right now.

Looking for someone that is a little bit more flexible on LTV with some creative options.

Any thoughts or recs?

 @Wouter Erwee Likely the reason for the 15k in costs is that the max loan to value for the loan program is 75%. That would be 93,750 for a max loan. So, 6250 of that 15k would be to get your loan amount down to that max loan to value. For a conventional loan, you should be able to go all the way up to 85% loan to value with Freddie Mac for a rate/term meaning you are not pulling any cash out. (Fannie does cap at 75%) If you are doing a DSCR loan a lot will go up to at 80% loan to value for a rate/term refi but the property will need to cash flow so maybe that is requiring more down to lower the PITI?

Ask your loan officer for more details on why their loan to value is what it is.