4Family with FHA, Refinancing is a Nightmare!

[Damian Seguen]

Hello BP, I’m brand new to the Forum. Would love to actually get some advice from people in the industry. Have enough “employee mentality” family steering me away.

I'm 29, 2 years ago, Purchased a 4 family with FHA(345k). Rehabbed my "primary unit" with the intention of renting it and switching into less desirable units while I renovate. Ended up renovating 2 of the 4!

TIME TO CASH-OUT REFINANCE!!!

Here is where the nightmare begins! Went thru a mortgage broker tried FHA Jumbo, they took about 6 months just pushing my file along. First meeting was in July2018, didn't get appraisal until October2018.(635k appraised). I only got calls on Friday's since then. Was told January ‘19 the reserves won't qualify. Now all of a sudden there is an investor loan available 7.5% on a 5/1 Arm AND I CAUGHT A "TYPO" OF 4% ORIGINATION THAT WAS "NEGOTIATED" BY THEM DOWN TO 2% .

Very different from 4.5 30Yr fix ON THE ORIGINAL REFI. Or my current 3.875 30Yr fix.

Needless to say, need the cash out to repay my self back for renovation and begin my next project. It’s now End of Feb’19 and they want me to pay another appraisal for this 5/1 and no closing date in sight. 🙄🙄🙄

I‘D LOVE TO SHARE MY JOURNEY WITH EVERYONE!!

[Jorjio Hopkins]

Hi @Damian Seguen,

Have you tried contacting multiple local banks in your area to see what they can do for you?

Banks ultimately would love to win your business.  With that appraisal you're only ~54% leveraged as well which is low risk for most banks.

I would highly suggest shopping around and talking with at least 3 other banks to see what kind of loans and rates they'd be willing to provide for you.  

Based on your plan to pull out your cash for your next project, any refinance that allows you to still cashflow on your current 4 family while providing you with a 30 year fixed rate mortgage would be ideal.