Cash out refinance on investment property

[David Niu]

Hello BP friends,

I am currently trying to do a cash out refi on a investment property. It’s a duplex I bought couple years back and have done a good amount of renovations to it (roughly 30k, doing a lot of the Reno myself).

This was originally a house hack that I've moved out of after a year, it's currently under a FHA loan at 4.25% interest rate.

That being said, I'm having a lot of trouble finding a lender that will lend me a conventional loan at 80% LTV, I know this is hard to find but for some reason everyone I spoke to caps me out at 70% LTV, saying it's a guideline for penny Mac mortgages. While I hear all the time on BP podcast people can get 80%, is this true??

The ideal situation is that I get a 80% Cash out and take off the PMI. I still owe about 168k on it and I estimate it's worth about 250k. Can someone please advise on what can be done here and what's the best way to pull this money out so I can keep investing?

Please know I no longer live in this duplex and both sides are now rented out, considered as an investment property.

Thank you all for your time! If I missed anything or need to be more specific on something please let me know!

David

[Zack Karp]

@David Niu you won't find a lender to do more than 70% cash out on a investment property 2-unit, because that is the max LTV. This is set by Fannie Mae & Freddie Mac. You will not find a different answer from lender to lender. Your only option for a higher LTV is a different loan...other than Conventional. Period.

Best of luck!