Cash Out Refinance? But My Credit From the Buy and Rehab!!!

[Howard Montaque]

So what happens when you go to cash out refinance and you have used your HELOC and personal loans to buy the property and rehab while keeping your liquid cash on hand. The bank runs your credit for the cash out refinance and sees youre over $100k in debt?!!!

[Greg Scott]

Sounds like you walked into a bank. They will treat you like you are buying a home to live in and if you have a lot of debt, they go "tilt".

A mortgage broker will apply 75% of the income from rent towards your Debt-to-Income. If you are buying rent properties right, your DTI improves with every purchase so refinancing should not be a problem.