BRRRR deal loan terms

[Kristi Wolfe]

I'm a newbie in the "learning and assembling me team" stage, and I found a lender who had a loan that was structured for BRRRR deals. Back in early March (pre Covid), details were:

Minimum downpayment: 10% of the total of purchase price + rehab budget

HML interest only-rate for an unseasoned investor: 11.5%

conversion to 30-year fixed rate: 6.75% (or could buy down the rate), and I can pull out a maximum of 80% of the ARV.

BUT NOW.....as of today, the new terms are:

Minimum downpayment: **25%**** of the total of purchase price + rehab budget!!!!!!

HML interest only-rate for an unseasoned investor: 12% (only a 1/2 percent increase - understandable)

conversion to 30-year fixed rate: 7-8%, (varies, based on debt service ratio) and I can pull out a maximum of 75% of the ARV.

In March, it looked fabulous. Now it looks totally unappealing. I haven't been following the market since the spring - is this how it looks everywhere these days, or do I need to start from scratch and try to find a new lender at this point? I can come up with a 25% downpayment, but it'll be hard (have to sell stocks to get it), but the worst part is the 8% APR on the fixed rate 30 year loan...that seems ridiculous to me!