Rate term refinance

[Steven Gebhardt]

Hey guys,

I am looking to refinance a 5/1 ARM commercial loan into a 30 year fixed conventional rate. A lot of online lenders are saying "the rules" state they can only lend 75% LTV on investment properties. I have a local bank that is saying I can do 80% LTV. Do you guys know if it's just a Fannie/Freddie rule that you can only get 75% LTV for conventional rate term refinance?

[Nicholas Covington]

@Steven Gebhardt

Banks, especially smaller banks, tend to lend their own money. If they are selling to secondary (fannie/freddie) they will be stuck at offering up to 75%. If they are lending their own money with their own rules, then it is indeed possible for them to be able to lend up to 80%. You are assuming that they are selling their loans, though they could as there are other investors that buy as well.

I broker to lenders that offer 80-85% LTV so it indeed is possible. If they say they offer it, then I would believe that they do. We cannot advertise programs that we cannot offer, that is a violation.