Best cash out refinance lenders?

[Sarah Stapp]

Hello, RE friends! Wanted to see if anyone has insight into the best long term cash out refinance programs right now? Best rate? Highest LTV? Lowest fees? I'm refinancing 2 BRRRR rehabs in Illinois. Thanks!!

[Brittany Minocchi]

How long have you owned them? Conventional refis require 12 months of seasoning now, so many investors are using DSCR loans. Rate, LTV, fees, min loan amount/property value and seasoning requirement will vary by lender. To give an idea though - 75% LTV is pretty common and most (not all) lenders want to see 6 months of seasoning to use apprised value. For term, 30 year fixed and ARMs are available. Consider the prepayment penalty too, they're usually up to 5 years but many lenders give you the option to buy it down or out completely in exchange for a higher rate. I know of at least one lender doing up to 80% LTV with no seasoning requirement as long as rehab was completed for qualified borrowers. The lenders with the more flexible guidelines (allow a lower FICO, higher LTV, less seasoning, etc) tend to have higher rates than the lenders with more strict guidelines.

Hope that helps, feel free to connect if you think of any other questions :)