Conventional Cash out Refi for MFRs??

[Tara Miles]

We have 5 Duplexes that we're looking to cash out refi. Have some quotes going the DSCR route however fees and rates seem on the higher end, we have 790 credit score, good W2 jobs so documentation is not a problem and we don't have an issue putting them in our personal names, but have had the MFRs for less than a year and operate out of MD. Is there any conventional residential loan options anyone is aware of that would allow cash out refi with less than 12 mths seasoning? Appreciate any information!

[Erik Estrada]

Quote from @Tara Miles:

Under 12 months (3 since August and 2 since November) so the conventional route won’t work. I’m open to DCSR if it makes sense but have been told I won’t find one that doesn’t have a PPP. The total fees we were quoted from one lender initially were $50k on a $6ook DCSR between origination, closing/admin and title, seems excessive?

You can price out a DSCR loan with no PPP. There is a couple of ways to do it. You can either buy it out in points or have a higher rate for a decreased PPP. The most common structure is a 3,2,1 given our current outlook on rates and the flexibility of only having it for 3 years.