Cash Out Refi in DFW - LTV Limits

[Scott Sloan]

I plan to close on a quadruplex next week in Dallas County with cash. I would like to do a cash-out refi in about a month or so when I finish some renovations. After convincing two lender that a "seasoning" period isnt necessary when the property is bought in cash as an investment property, I am now being told that there's a max 70% LTV on a potential refi. Is anyone else seeing this or know anyone who can do a 75% or 80% LTV refi on a quadruplex? This is for a conventional Fannie/Freddie residential-type loan.

[Chris Mason]

Quote from @Scott Sloan:

I plan to close on a quadruplex next week in Dallas County with cash. I would like to do a cash-out refi in about a month or so when I finish some renovations. After convincing two lender that a "seasoning" period isnt necessary when the property is bought in cash as an investment property, I am now being told that there's a max 70% LTV on a potential refi. Is anyone else seeing this or know anyone who can do a 75% or 80% LTV refi on a quadruplex? This is for a conventional Fannie/Freddie residential-type loan.

 1) FYI just because you can convince a loan officer that guidelines allow for something, doesn't mean you're going to be able to teach them how to use their own mortgage software, to originate/document it correctly, so it doesn't just get denied by underwriting as soon as it gets to that point.

2) 2-4 unit non-owner occupied cash out LTV cap is indeed 70% for both Fannie and Freddie, which is where the best rate/fees/terms/etc are to be found. Outside of that, if you've got strong cashflow, a lot of the DSCR lenders will go to 80%, check with a local mortgage broker, it's no longer anything special (provided you're willing to take the worse rate/fees/terms/etc).

Cheat sheet: