Rental Property Investor · Member since 2021 · 423 posts · 190 votes
My local credit union offers up to 75% LTV. They have 10, 15, 20, and 30 year loans. Anything above 10 years has a 12-year balloon payment. I can always refinance it. The rate is exactly 1% higher than what the rate is for a principal residence. There is also points associated based on the LTV and the term that I select. 30-year would be mid-to-high 5s (1% higher than current 4.625% for a cash out refinance on a primary residence).
Another bank has a year waiting period, up to 75% LTV, needs 3 years of tax returns, $500 application fee, appraisal fee. They look at cash flow and need a DSCR of 1.20.
Another bank has a 12 month wait, 80% LTV. They have an 8% interest rate on non-QM mortgage. They have a Fannie Mae at 5% with 5 points OR 6% with 2.5 points.
Lender · Member since 2022 · 441 posts · 134 votes
4y
Hey Mike, 75% LTV is typically the max for cashout refinance for banks,credit unions or commercial lenders depending on state maximum. Fee's seem high to but that is a new normal now as rates are on the rise industry wide, many lenders are trying to build in a buffer in case of further adjustments that may come. On the note of the bank needing 12 months of "seasoning" that is also pretty standard for banks but some commercial lenders or credit unions do not have that. It just mainly comes down to sourcing the right lender for you and your long term plan.
Lender · Member since 2022 · 441 posts · 134 votes
4y
Hey Mike, 75% LTV is typically the max for cashout refinance for banks,credit unions or commercial lenders depending on state maximum. Fee's seem high to but that is a new normal now as rates are on the rise industry wide, many lenders are trying to build in a buffer in case of further adjustments that may come. On the note of the bank needing 12 months of "seasoning" that is also pretty standard for banks but some commercial lenders or credit unions do not have that. It just mainly comes down to sourcing the right lender for you and your long term plan.
Banker · Huntington Beach, CA · Member since 2018 · 99 posts · 100 votes
4y
@Mike Schorah When considering Non-QM, you are better off talking to brokers who'll shop different lenders to find you a good deal. Banks and credit unions have mostly been stricter with their guidelines. Depending on the property value, DSCRs can be up to 75%ltv on cash out and can allow you use the proceeds as reserves; lending on up to 8units and offer interest only loans based on the rental income covering the interest only payments. (AKA no income loans) The market is more flexible than the banks will lead you to believe. Let me know if you need a referral to a broker
Lender · Phoenix, AZ · Member since 2020 · 19 posts · 0 votes
4y
@Mike Schorah Hey Mike I would definitely shop around a bit more. I'm a direct lender for non qm and since our overhead is so minimal we don't charge any fees except a $1600 fee for processing and underwriting. Also, make sure you go with a reputable non qm lender to avoid getting a lender that fails to fund your loan. I checked rates earlier today and 6% with a couple points is very doable.