Investor · Dalton, GA · Member since 2010 · 8 posts · 8 votes
I have 3 duplexes appraised for $197,500 combined, that were purchased for $111,000 in June 2016. How much seasoning is needed for a cash out refinance loan and what LTV is expected? All have been rehabbed and are occupied.
What are rules for a cash out refinance for commercial properties?
Investor · Almont, MI · Member since 2015 · 360 posts · 302 votes
9y
Duplexes are not considered commercial...only 5+ units are. These are residential and terms depend on the bank and program. Usually a minimum of 6 months seasoning is needed.
Investor · Almont, MI · Member since 2015 · 360 posts · 302 votes
9y
Duplexes are not considered commercial...only 5+ units are. These are residential and terms depend on the bank and program. Usually a minimum of 6 months seasoning is needed.
Flipper/Rehabber · Los Angeles, CA · Member since 2015 · 128 posts · 37 votes
9y
I would call around some smaller portfolio lenders on this one, usually at least 6 months seasoning, and they usually pick the lower of the appraisal or the purchase price to determine value. I say usually because it depends. If they're held in your personal name you may be able to refi them into an LLC but again, it all depends on your situation. Just start calling!
Lender · Mokena, IL · Member since 2014 · 1k+ posts · 261 votes
9y
Hello Eugene,
In the unconventional lending world value seasoning in anywhere from none to 90 days. The LTV is generally based on credit score and cash flow of the property. The cash flow may support 75% LTV or less. This is determined by monthly rents/PITI.
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
9y
In this case, @Dante Pirouz is right. These are just 2 unit properties that are easily financed with conventional financing after 6 months; I would add, if you qualify.
It seems, running the numbers from your post, the loan amounts will be too small for investor/commercial financing like we offer (minimum loan amount 75K).