Advice on cash out refi on non warrantable condos

[William Charles]

Hello, I could use some advice on my current situation. I’m finishing up renovation on 2 non warrantable condos that won’t qualify for traditional financing. What would be the best loan product to seek to cash out refi? 

[Andrew Garcia]

Hi @William Charles, you will have to utilize a non-QM loan on this. You have two options:

Option 1: Full Doc. Lower rate but stricter underwriting.

Option 2: DSCR. Higher rate but more lenient underwriting.

There are obviously a lot more differences but, in a nutshell, if you value speed and ease over rate, go with DSCR. If you value rate over speed and ease, go with full doc.

Please let me know if I can be of any assistance.