Looking for a lender in TX for Cash out refi Conventional loan

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Looking for a lender in TX for Cash out refi Conventional loan

Jose Mora
Member since 2022 · 14 posts · 13 votes

Hello, 

I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points. 

Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things. 

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Jesse Rodriguez
Rental Property Investor · Los Angeles, CA · Member since 2020 · 141 posts · 61 votes
3y

@Jose Mora Try Rain City Capital. I was quoted in the 6% range

1Reply
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Jose Mora:

    Hello, 

    I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points. 

    Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things. 


    You can get nearly the same rate with fewer points on a DSCR loan. Also the minimum seasoning is 6 months on a DSCR.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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    1Reply
  • Dennis Muno
    Lender · Denton, TX · Member since 2023 · 349 posts · 80 votes
    3y
    Quote from @Jose Mora:

    Hello, 

    I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points. 

    Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things. 


     Hello Jose,

    You can cashout after 6 months usually. 

    0Reply
  • Jose Mora
    OP
    Member since 2022 · 14 posts · 13 votes
    3y
    Quote from @Erik Estrada:
    Quote from @Jose Mora:

    Hello, 

    I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points. 

    Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things. 


    You can get nearly the same rate with fewer points on a DSCR loan. Also the minimum seasoning is 6 months on a DSCR.


    The rate is high, but I think that is the average right now. Any DSCR lenders you recommend?

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Jose Mora:
    Quote from @Erik Estrada:
    Quote from @Jose Mora:

    Hello, 

    I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points. 

    Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things. 


    You can get nearly the same rate with fewer points on a DSCR loan. Also the minimum seasoning is 6 months on a DSCR.


    The rate is high, but I think that is the average right now. Any DSCR lenders you recommend?


     Just Pm'd

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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    0Reply
  • Jose Mora
    OP
    Member since 2022 · 14 posts · 13 votes
    3y
    Quote from @Dennis Muno:
    Quote from @Jose Mora:

    Hello, 

    I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points. 

    Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things. 


     Hello Jose,

    You can cashout after 6 months usually. 


     What rates are you seeing right now for a conventional cash out refi? 

    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
    3y

    you could get the same benefits of a dscr loan as a conventional loan. I would consider DSCR for sure much easier process!

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
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    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Jose Mora:

    Hello, 

    I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points. 

    Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things. 

     @Jose Mora Texas lender here. For a conventional loan you have to wait 12 months unless you use our no seasoning program. or, yes, you can do a DSCR loan after 6 months for a lot of programs. But, there are pro's and con's to DSCR.

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    0Reply
  • Tanner Lewis
    Lender · Austin, TX · Member since 2021 · 448 posts · 441 votes
    3y

    Depending on what lender you use the seasoning requirements may be different. I suggest using a "hard money" private lender and, depending on your credit score, you could do a DSCR loan based on the appraised value of the property.

    Additionally, I would not limit yourself to only Texas lenders, many are able to loan nationally. 

    0Reply
  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    3y

    @Jose Mora

    If you plan to stay with conventional financing, then as of earlier this year, you will need to have held title for 12 months before you will eligible for cash out proceeds.

    If you are looking at DSCR, then 6 months is pretty standard.

    We are in a rare time where DSCR is pricing much better than conventional right now. Normally, DSCR runs 0.25-.075% higher than conventional.

    The largest differences in the two are conventional is a full doc loan where DTI is calculated and involves a much deeper dive for the underwrite. Conventional loans do not come with any prepayment penalties.

    DSCR is a lite doc loan where no DTI, income, or employment is required. The loan is based on credit worthiness, liquidity, and cash flows of the subject property only. These loans do come with a prepayment penalty that usually vary between 3 or 5 years, but many will allow between 0 and 7. All ways to play with the rate and tailor the terms to your needs.

    Regardless of what many think or say, the two loans cost about the same, the differences are very comparable.

    Cheers!

    [email protected]
    Belsky Mortgage, LLC522 Reviews
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    1Reply
  • Zachary Ware
    Member since 2022 · 405 posts · 455 votes
    3y

    Hey Jose, 

    Have you looked at other types of loans? Sound like a lot of points to me. As others have mentioned, I would recommend looking at a DSCR loan as I see lower rates and points right now depending on the credit score and the property's performance.

    0Reply
  • Jesse Rodriguez
    Rental Property Investor · Los Angeles, CA · Member since 2020 · 141 posts · 61 votes
    3y

    @Jose Mora Try Rain City Capital. I was quoted in the 6% range

    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Jesse Rodriguez:

    @Jose Mora Try Rain City Capital. I was quoted in the 6% range


     6%? 

    FHA at par is at 6% now. How many buy down points are they charging?

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Brayden Hrycko
    Lender · Allentown, PA · Member since 2023 · 207 posts · 38 votes
    3y

    Hello @Jose Mora,

    As others mentioned DSCR sounds like it may actually be a better option while being less hassle. There are plenty of us that would love to help.

    1Reply
  • Doug Conway
    Member since 2023 · 1 post · 0 votes
    3y
    Quote from @Erik Estrada:
    Quote from @Jesse Rodriguez:

    @Jose Mora Try Rain City Capital. I was quoted in the 6% range


     6%? 

    FHA at par is at 6% now. How many buy down points are they charging?

    Erik, he did say 6% range and depending on leverage amounts I have a couple of hard money lenders on rate/term that can get to 6.475% at 50-60% LTV with .5-1.5 BPS.
    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    3y
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.
    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    3y
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 


    yeah, all DSCR loans do, but aren't reported on credit and are low doc.
    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 


    yeah, all DSCR loans do, but aren't reported on credit and are low doc.

     so, if a personal guarantee why does it matter if it is on your credit report or not? Credit report is not the arbiter if the borrower is responsible for a payment. If a small credit union does not pay to have their loans report to the credit agencies for a primary home or an auto loan does that mean it does not exist? 

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    3y
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 


    yeah, all DSCR loans do, but aren't reported on credit and are low doc.

     so, if a personal guarantee why does it matter if it is on your credit report or not? Credit report is not the arbiter if the borrower is responsible for a payment. If a small credit union does not pay to have their loans report to the credit agencies for a primary home or an auto loan does that mean it does not exist? 


    It's not reported on credit for the sake of the borrower. This means it won't effect your DTI or credit.

    There has to be a personal guarantor to ensure someone is held accountable if a foreclosure leads to court.
    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 


    yeah, all DSCR loans do, but aren't reported on credit and are low doc.

     so, if a personal guarantee why does it matter if it is on your credit report or not? Credit report is not the arbiter if the borrower is responsible for a payment. If a small credit union does not pay to have their loans report to the credit agencies for a primary home or an auto loan does that mean it does not exist? 


    It's not reported on credit for the sake of the borrower. This means it won't effect your DTI or credit.

    There has to be a personal guarantor to ensure someone is held accountable if a foreclosure leads to court.

    But, you are incorrect. It DOES effect DTI. It is still a loan you are responsible for therefore effect the DTI. The credit report does NOT dictate what debts the borrower has in full. It is just one source used to find debts. And if a borrower does not disclose the loan on an application that is fraud. And do you think lenders will not see the income on the tax return when applying for a full doc loan?

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    3y
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 


    yeah, all DSCR loans do, but aren't reported on credit and are low doc.

     so, if a personal guarantee why does it matter if it is on your credit report or not? Credit report is not the arbiter if the borrower is responsible for a payment. If a small credit union does not pay to have their loans report to the credit agencies for a primary home or an auto loan does that mean it does not exist? 


    It's not reported on credit for the sake of the borrower. This means it won't effect your DTI or credit.

    There has to be a personal guarantor to ensure someone is held accountable if a foreclosure leads to court.

    But, you are incorrect. It DOES effect DTI. It is still a loan you are responsible for therefore effect the DTI. The credit report does NOT dictate what debts the borrower has in full. It is just one source used to find debts. And if a borrower does not disclose the loan on an application that is fraud. And do you think lenders will not see the income on the tax return when applying for a full doc loan?

    You forgot one part… these loans close under an entity. Therefore, it’s not your personal income or taxes. It’s a business.

     
    I’m going to take a shot in the dark and say you’re a conventional broker/loan officer?

    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 


    yeah, all DSCR loans do, but aren't reported on credit and are low doc.

     so, if a personal guarantee why does it matter if it is on your credit report or not? Credit report is not the arbiter if the borrower is responsible for a payment. If a small credit union does not pay to have their loans report to the credit agencies for a primary home or an auto loan does that mean it does not exist? 


    It's not reported on credit for the sake of the borrower. This means it won't effect your DTI or credit.

    There has to be a personal guarantor to ensure someone is held accountable if a foreclosure leads to court.

    But, you are incorrect. It DOES effect DTI. It is still a loan you are responsible for therefore effect the DTI. The credit report does NOT dictate what debts the borrower has in full. It is just one source used to find debts. And if a borrower does not disclose the loan on an application that is fraud. And do you think lenders will not see the income on the tax return when applying for a full doc loan?

    You forgot one part… these loans close under an entity. Therefore, it’s not your personal income or taxes. It’s a business.

     
    I’m going to take a shot in the dark and say you’re a conventional broker/loan officer?


    and who guarantees the business??? Does that business not show up on tax returns?? I have originated more DCSR loans back when they were still called "cash flow" loans in 2012. I have a number of DSCR loans in my pipeline right now some in personal names and some in entity. I just understand how they work in the real world when the borrower goes to apply for a primary loan as I also have an NMLS license, and have since 2000. The realty is not how DSCR only brokers frame it.

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    3y
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    Quote from @Jay Hurst:
    Quote from @Timothy Hero:
    My DSCR lenders are offering 8% with 1 pt and it's low doc and not on credit.

    Blow my mind how conventional is screwing investors.

     Curious, do your loans require a personal guarantee? do they have pre-payment penalties? 


    yeah, all DSCR loans do, but aren't reported on credit and are low doc.

     so, if a personal guarantee why does it matter if it is on your credit report or not? Credit report is not the arbiter if the borrower is responsible for a payment. If a small credit union does not pay to have their loans report to the credit agencies for a primary home or an auto loan does that mean it does not exist? 


    It's not reported on credit for the sake of the borrower. This means it won't effect your DTI or credit.

    There has to be a personal guarantor to ensure someone is held accountable if a foreclosure leads to court.

    But, you are incorrect. It DOES effect DTI. It is still a loan you are responsible for therefore effect the DTI. The credit report does NOT dictate what debts the borrower has in full. It is just one source used to find debts. And if a borrower does not disclose the loan on an application that is fraud. And do you think lenders will not see the income on the tax return when applying for a full doc loan?

    You forgot one part… these loans close under an entity. Therefore, it’s not your personal income or taxes. It’s a business.

     
    I’m going to take a shot in the dark and say you’re a conventional broker/loan officer?


    and who guarantees the business??? Does that business not show up on tax returns?? I have originated more DCSR loans back when they were still called "cash flow" loans in 2012. I have a number of DSCR loans in my pipeline right now some in personal names and some in entity. I just understand how they work in the real world when the borrower goes to apply for a primary loan as I also have an NMLS license, and have since 2000. The realty is not how DSCR only brokers frame it.


     I closed a conventional loan in March as the borrower. Bank never asked me to sign anything stating if I have any additional debt.

    0Reply
  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    As others have said, at that rate a DSCR loan would be at lower rates or points. However, even if they were equally priced, there are benefits to going the DSCR route whenever you can. Ask your lender if their DSCR loans are reported to the credit bureaus. A lot of them don't report, which will help keep your DTI low

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @Jose Mora That's worse than the best DSCR pricing right now. 8.25% would not cost 4 points unless you're talking about a tiny loan size perhaps or some sort of other hair on the deal. We could do this with only 3 months of seasoning (not 6 or 12 like most will need).

    [email protected]818-606-8823
    Investor Property Loan5308 Reviews
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    0Reply
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