Rental Property Investor · San Diego, CA · Member since 2008 · 161 posts · 15 votes
With the current market as it is... are there lenders out there that will refi out of a hard money rehab based upon the following:
up to 80% LTV on the new current repaired value
cash out up to 80% only owning the property 6 months or less
have lenient DTI or a stated income program?
Does anything even close to that excist these days?
Not yet. I want to have all my ducks in a row and my exit strategies planned out prior to obtaining the property.
So you think that 70% could be possible?
No seasoning requirements?
Lenient DTI or stated programs?
Cash Out to 70%?
Do tell me more if you have the info.
I would be interested in rate and term as well if cash out is not an option. I am sure it would be less than 70% in those instances.
Stated income is practically gone.
Seasoning is a huge issue right now.
A NOO loan will currently require up to 6 months of seasoning. I am currently seeking creative alternatives around this as it is an issue for some of my current strategies right now. There is another thread about this issue.
Stated income is practically gone.
Seasoning is a huge issue right now.
A NOO loan will currently require up to 6 months of seasoning. I am currently seeking creative alternatives around this as it is an issue for some of my current strategies right now. There is another thread about this issue.
Thanks for the reply!
It seems that all I am getting right now is that things are issues, the programs are gone, or that we are searching. Does anyone have answers?
Care to share what you have found so far?
Have you tried calling lenders in your area? Local info is going to be best, since conditions are different in different parts of the country. Try making some phone calls to local lenders and mortgage brokers and see what they have to say.
Have you tried calling lenders in your area? Local info is going to be best, since conditions are different in different parts of the country. Try making some phone calls to local lenders and mortgage brokers and see what they have to say.
Jon,
Should I be calling where I live, or where I plan to buy/lend? Two different states entirely. Let me know, thanks! :mrgreen:
Slinger,
As Jon mentioned, local small community banks are a great option, particularly ones that will carry their own paper, tehrefore they do not have to go with the Freddie/Fannie guidelines.
You will want to use the bank in the area you are investing, as the bank is familiar with that area and not the bank where you live.
Hate to point out another problem, but be aware that some of these local banks will be more apt to loan to a "local" for the property in that area as opposed to an out of state investor. It is just a sign of the times. Keep searching the banks as there are many local ones and one of them should be able to accomodate you.
Slinger,
As Jon mentioned, local small community banks are a great option, particularly ones that will carry their own paper, tehrefore they do not have to go with the Freddie/Fannie guidelines.
You will want to use the bank in the area you are investing, as the bank is familiar with that area and not the bank where you live.
Hate to point out another problem, but be aware that some of these local banks will be more apt to loan to a "local" for the property in that area as opposed to an out of state investor. It is just a sign of the times. Keep searching the banks as there are many local ones and one of them should be able to accomodate you.
Is there an easy to to find out which local bank (in the area I will invest) carries their own paper? Or do I just try calling and asking or what is the easiest way?
You have to start calling banks. That simple. Be very clear what you want and what you are trying to accomplish so they get a clear picture and you get an accurate reply.
Anthony, have you actually closed on one of these Quicken loans?
They are loan brokers and often times, advertise and promise great rates and terms, then fail to deliver at the final hour, in my experience.
Just wonder if you have personally experienced the loan you outlined.
slinger, i too am in your same spot...i have a HM rehab loan almost ready to go but just need to line up the exit refi, bc i plan on holding onto the property as it will provide excellent cash flow ...
i have also been told the local banks are the way to go...i have 2 calls in and have spoke with two local lenders probably call more this week...
one lender (i have used them 3 times this year for other deals) is my best bet and even though they know me and know my history and experience they are "on the fence" about this type of financing...they have not ruled it out but the broker said yesterday "i wil run it my sr. management"...doesnt sound too good...
this would be my fist HML too...keep you posted...
sling, i just had a face to face meeting w/ a local bank here north of boston...we spoke at first about exit strategy out of hard money into a conventional loan...
he then presents me with the possibility of a staight construction/rehab loan with his bank based on 75% or even possibly 80% LTV based on ARV...with an interest rate of around 7 or under 5/1 ARM & 30 yr...
needless to say i walked out very excited...reasons he is optimistic about lending to me is 1) i have over 5 yrs experience buying/selling and renting multi family property and 2) this is not my primary business, only a secondary form of income 3) MOST IMPORTANTLY they will keep this loan "in house" as i already have over 4 mortgages
so keep calling, yesterday i think i called 6 smaller to mid sized local banks in and around Boston
sling, i just had a face to face meeting w/ a local bank here north of boston...we spoke at first about exit strategy out of hard money into a conventional loan...
he then presents me with the possibility of a staight construction/rehab loan with his bank based on 75% or even possibly 80% LTV based on ARV...with an interest rate of around 7 or under 5/1 ARM & 30 yr...
needless to say i walked out very excited...reasons he is optimistic about lending to me is 1) i have over 5 yrs experience buying/selling and renting multi family property and 2) this is not my primary business, only a secondary form of income 3) MOST IMPORTANTLY they will keep this loan "in house" as i already have over 4 mortgages
so keep calling, yesterday i think i called 6 smaller to mid sized local banks in and around Boston
BG,
Thanks so much for this info! It is really important! It gives me a ton of hope that I will be able to complete this first deal :mrgreen: Just keep me posted with your project and if I get some more info I will post here as well. Thanks again!!!