Does a cash-out refi product exist that will exceed 75% LTV?

[Kenneth Croisetiere]

Good Morning everyone! I'm in the middle of a flip right now and ran into some unexpected major expenses so I'm considering holding onto this property for a few years as a rental then possibly selling in 5+ years. I purchased the property for $138k (including closing costs) and the renovations will come in around $90k. The ARV of this property should be $265k. If I seek a conventional 30-year fixed mortgage I believe the LTV limit is 75% (which would leave me with $30k invested in this deal). I really don't wish to leave that much capital in this deal if possible so I'm wondering if anybody has seen a lender go to 80-85% LTV in an non-owner-occupied investment property. Thanks in advance everyone!

[Stephanie P.]

Originally posted by @Kenneth Croisetiere:

Good Morning everyone! I'm in the middle of a flip right now and ran into some unexpected major expenses so I'm considering holding onto this property for a few years as a rental then possibly selling in 5+ years. I purchased the property for $138k (including closing costs) and the renovations will come in around $90k. The ARV of this property should be $265k. If I seek a conventional 30-year fixed mortgage I believe the LTV limit is 75% (which would leave me with $30k invested in this deal). I really don't wish to leave that much capital in this deal if possible so I'm wondering if anybody has seen a lender go to 80-85% LTV in an non-owner-occupied investment property. Thanks in advance everyone!

 You won't find that in a conventional loan.  Maybe a local credit union, but I doubt it.  I'm thinking you're going to max out at the regular conventional ltv of 75%.  There are alternatives like an interest only loan through a national hard money lender, but you'll end up spending a good amount in points and then closing costs for a refinance after the renovations are complete.  You will probably find that it's more cost effective to either sell the property or just leave the 30K in there if you're going to keep it.