Suburban/rural SFR rented to 2-families - refinance

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Suburban/rural SFR rented to 2-families - refinance

Saman Pari
Member since 2022 · 14 posts · 2 votes

I have an SFR I'm trying to cash out refi. However being rural I'm running into challenges with lenders. The house itself is split also to support 2 families and gives great cash flow. What type of lenders would work with this? Thanks In advance for help

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Stephanie P.Pro Member
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
3y
Quote from @Saman Pari:

I have an SFR I'm trying to cash out refi. However being rural I'm running into challenges with lenders. The house itself is split also to support 2 families and gives great cash flow. What type of lenders would work with this? Thanks In advance for help


 Saman

If the house is set up to support two families, you may have changed the footprint of the house to create internal obsolescence. If it's not a legal 2 unit meaning the zoning doesn't allow for two units, but you've changed the property to support two families, no lender will do the loan.  Add rural to the equation and you're going to have a tough time on this one.

Stephanie

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  • Saman Pari
    OP
    Member since 2022 · 14 posts · 2 votes
    3y

    Ideally 70-75%. Debt is zero

    0Reply
  • Heith Reade
    Lender · Nationwide · Member since 2022 · 48 posts · 12 votes
    3y

    What state and what is the anticipated value? These can be contributing factors in their consideration. Also, is the home zoned correctly to allow a duplex or is it a 1 unit only zoning?

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Saman Pari:

    I have an SFR I'm trying to cash out refi. However being rural I'm running into challenges with lenders. The house itself is split also to support 2 families and gives great cash flow. What type of lenders would work with this? Thanks In advance for help


     Hey Saman, 

    I work with a few lenders that lend in rural areas. LTV is restricted though, (about 60-65% LTV)

    Happy to connect 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
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  • Saman Pari
    OP
    Member since 2022 · 14 posts · 2 votes
    3y
    Quote from @Heith Reade:

    What state and what is the anticipated value? These can be contributing factors in their consideration. Also, is the home zoned correctly to allow a duplex or is it a 1 unit only zoning?

    This it’s in texas. And no way to set up duplex
    0Reply
  • Heith Reade
    Lender · Nationwide · Member since 2022 · 48 posts · 12 votes
    3y
    Quote from @Saman Pari:
    Quote from @Heith Reade:

    What state and what is the anticipated value? These can be contributing factors in their consideration. Also, is the home zoned correctly to allow a duplex or is it a 1 unit only zoning?

    This it’s in texas. And no way to set up duplex

     When you say it is split to support 2 families? Is it a duplex currently?

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Saman Pari- 1)is home a SFR or a duplex ...if a duplex - should be easy ....if a SFR and home is redisgned to be a 2 plex - then you will likely have an issue ( in additon to it being rural and likely lacking in comparables ) ....you might try contacting the lender that has the loan now for options

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  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y
    Quote from @Saman Pari:

    I have an SFR I'm trying to cash out refi. However being rural I'm running into challenges with lenders. The house itself is split also to support 2 families and gives great cash flow. What type of lenders would work with this? Thanks In advance for help


     Saman

    If the house is set up to support two families, you may have changed the footprint of the house to create internal obsolescence. If it's not a legal 2 unit meaning the zoning doesn't allow for two units, but you've changed the property to support two families, no lender will do the loan.  Add rural to the equation and you're going to have a tough time on this one.

    Stephanie

    1Reply
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