Getting 25 Year Amms

[Andrew Syrios]

This post doesn't really concern those in higher priced markets where most banks lend with 30 year amms, but in the South and Midwest in particular, most local banks are only at 20 years. For those having trouble hitting DSCR's for refinances or purchase loans with local banks given the higher rates, higher values and 20 year amms most offer.

We've had a lot of luck asking banks to go up to a 25 year amm by dropping the LTV to 70%. We just frame it that they will have more equity in the property that way for about 5 or 6 years and at that time, even with no appreciation, the LTV would only be about 58%.Of course, that means we have to leave a bit more money in the properties but it also means that, well, they actually cash flow.

Just something to think about if you're having trouble getting banks to approve refinances or loans because of DSCR issues.