Cash-out refi issues in TX

[Dmitri L.]

Hi All,

I have a TX rental (~250k market value, ~80k loan balance) and want to pull some cash out of the equity via a cash-out refi/heloc/2nd mortgage. 

Unfortunately it looks like there's some rule against the combination of:

- conventional loan

- cash-out refi

- investment property

- borrower does not own a primary residence in TX

Has anyone ran into this type of issue before? Anyone aware of a lender that could help?

TIA!

Dmitri

[Alex Bekeza]

@Dmitri L. Texas has some unique cash out refi laws that only pertain to loans which are governed by Dodd Frank (Fannie/Freddie conventional/primary residence).  

NONE of these apply to investor DSCR loans.

Most DSCR products will allow up to 75% cash out in Texas assuming you stay cash flow positive. We don't require you to own your primary residence.

However, you wouldn't be able to incorporate any subordinate or secondary financing. We (most DSCR lenders) would need to be the only lien in 1st position.

Happy to chat through your scenario offline if you'd like. I think you'll be surprised how close the best DSCR loans are to Fannie/Freddie investments rates right now without the vast majority of red tape. (LLC vesting not just allowed but preferred, no cap on # of rentals, no DTI requirements or tax returns, etc... totally based on FICO/DSCR).