Recommendations for Cash-out Refinance Lender for a SFH Rental

[Ben Chung]

I have a SFH rental that I own outright (no mortgage), I want to refinance and cash-out the existing equity in that property. Current tenant's rent is $1200/mo, yr to yr. House is worth approx $150k, and assuming a standard 70-75% LTV would put the loan amount between $105-112k. As a self-employed real estate investor that's taken time off all throughout covid (recently getting back into the game), my income on paper is very minimal. Anyone have any recommendations for the best Cash-out Refi lenders? (Best rates, lowest points, no income verification)

[Brandon Beardt]

Quote from @Ben Chung:

I have a SFH rental that I own outright (no mortgage), I want to refinance and cash-out the existing equity in that property. Current tenant's rent is $1200/mo, yr to yr. House is worth approx $150k, and assuming a standard 70-75% LTV would put the loan amount between $105-112k. As a self-employed real estate investor that's taken time off all throughout covid (recently getting back into the game), my income on paper is very minimal. Anyone have any recommendations for the best Cash-out Refi lenders? (Best rates, lowest points, no income verification)

 Hi Ben,

If you're looking for a program that doesn't require any type of personal income verification, DSCR is one option you should explore. As long as the rent is greater than the property's projected new Principle/Interest, Taxes, and Insurance payment (PITI) then the property can qualify. You won't have to submit any sort of personal income docs such as Tax Returns. Pricing will depend on other factors such as LTV, FICO score, loan amount, etc. It's a business purpose loan, therefore the liability won't show on personal credit, regardless if you're closing in a LLC or your personal name (with us, can't say the same for others). I'd suggest shopping around as there are a ton of DSCR lenders on this platform that have the ability to help you out. Rates/terms and fees will vary lender by lender, so you'll want to know exactly what you'll be paying for and what to expect before committing anywhere. Best of luck.