Cash out Refinance using DSCR loan without seasoning period

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Cash out Refinance using DSCR loan without seasoning period

Ola Owoyemi
Investor · Member since 2019 · 8 posts · 8 votes

Any lender offering cash out refi using DSCR loan without seasoning period. The rental property is in MD.

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Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
2y

I do this all the time with banks. But you have to buy the property a certain way for it to work. Don't buy it at the discounted amount. Buy it at the ARV with a rehab credit. Then refinance it as soon as it is finished.

480-206-1209Podcast Guest on Show #287
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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    2y

    90% of lenders are going to want to see at least a six-month seasoning before giving you this loan. Some may be able to do it sooner, but the loan to value will be terrible.

    0Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 661 posts · 320 votes
    2y
    Quote from @Ola Owoyemi:

    Any lender offering cash out refi using DSCR loan without seasoning period. The rental property is in MD.


     Hey Ola,

    There are a few, and honestly they are pretty competitive as long as you can show that you did some rehab to the property to improve the value. 

    Did you purchase it with a 'fix and flip' or rehab loan that you are looking to refinance out of? Or did you just buy it in cash and are wanting a refinance?

    [email protected]417-427-2612
    0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 690 posts · 236 votes
    2y

    Hey Ola, it depends on your situation but sometimes have no value seasoning up to 80% Loan To Value.  If you have a specific scenario, let us know and we would be happy to see if we could possibly help.

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group547 Reviews
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    1Reply
  • Vadim F.
    Investor · Member since 2020 · 337 posts · 213 votes
    2y

    Are you planning on doing a cash-out refi or rate/term? If its rate/term you don't need seasoning and is done current appraised value.

    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 677 votes
    2y
    Quote from @Ola Owoyemi:

    Any lender offering cash out refi using DSCR loan without seasoning period. The rental property is in MD.


     The minimum seasoning period for most reputable lenders is 30-90 days post-close. There are limitations on the value ad - appraised value for max leverage. 

    [email protected]860-538-3672
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    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    2y
    Quote from @Eliott Elias:

    90% of lenders are going to want to see at least a six-month seasoning before giving you this loan. Some may be able to do it sooner, but the loan to value will be terrible.

    I wouldn't say 90%. I'm about to close my 250th DSCR mortgage as a broker in 36 months, and of the 20 or so lenders I work with, I'd say 10-12 only require 3 months.

    If you purchase the property in cash, then yeah. Most require 180-day seasoning.

    My lowest rate lender offers the following if it's not seasoned: 100% of the purchase price + 100% of the reno amount.
    0Reply
  • Ola Owoyemi
    OP
    Investor · Member since 2019 · 8 posts · 8 votes
    2y
    Quote from @Vadim F.:

    Are you planning on doing a cash-out refi or rate/term? If its rate/term you don't need seasoning and is done current appraised value.


     I am planning to do a cash out refi. 

    0Reply
  • Ola Owoyemi
    OP
    Investor · Member since 2019 · 8 posts · 8 votes
    2y
    Quote from @AJ Exner:
    Quote from @Ola Owoyemi:

    Any lender offering cash out refi using DSCR loan without seasoning period. The rental property is in MD.


     Hey Ola,

    There are a few, and honestly they are pretty competitive as long as you can show that you did some rehab to the property to improve the value. 

    Did you purchase it with a 'fix and flip' or rehab loan that you are looking to refinance out of? Or did you just buy it in cash and are wanting a refinance?

    I got an off market BRRRR project that was mostly cosmetic and completed in about 10 days with a  HML. It’s a rehab loan and I’m looking to cash out refi. 
    1Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 661 posts · 320 votes
    2y

    Great, 

    Will send you a DM to get some more information.

    [email protected]417-427-2612
    0Reply
  • Brandon BeardtPro Member
    Lender · La Crescenta, CA · Member since 2021 · 261 posts · 157 votes
    2y
    Quote from @Ola Owoyemi:

    Any lender offering cash out refi using DSCR loan without seasoning period. The rental property is in MD.


     Hi Ola,

    You can do a refinance before 90 days of Title seasoning, however, leverage will be based on original purchase price + verified rehab. If you're looking to refinance based on the property's NEW appraised value of the property, you'll need to wait the 90 days of Title seasoning. Best of luck.

    [email protected]818-726-2418
    0Reply
  • Bobby FeinmanBusiness Member
    Lender · VA Beach, VA · Member since 2019 · 950 posts · 93 votes
    2y

    Hi Ola

    Our DSCR programs have either NO seasoning requirement to 90 day seasoning from date of purchase as long as then property has been improved (rehabbed). Hope this helps!

    Bobby

    [email protected]757-222-5937
    0Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    If there are two comparable sales with a loan, the loan is larger than $100000, loan to value 75%, your FICO is above 690, in your personal name or ESTABLISHED LLC vesting, you have a lease and deposit check- cash out in 60 days is available

    0Reply
  • Katherine Blazer
    Lender · Tampa/St. Petersburg/Sarasota FL and Knoxville/Sevierville/Maryville, TN · Member since 2018 · 361 posts · 178 votes
    2y

    I agree with most of these responses. Most lenders do want at least six months of seasoning. I do work with one larger fund that will allow no season. They want the property occupied already, and we have closed multiple deals with them. 

    0Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    Hey ! Yes there are options upto 80% ltv if DSCR ratio is over 1 and can be no seasoning

    0Reply
  • Carrie Matuga
    Lender · Riverside, CA · Member since 2017 · 248 posts · 98 votes
    2y

    @Ola Owoyemi Congratulations on finding a deal and finishing the updates so quickly! If you can show the different between previous appraised value with your construction budget and new appraisal pictures, you should be able to do up to an 75-80% cash out refinance. I'd love to connect and talk about what that could look like. I sent you a DM.

    0Reply
  • Anthony KingPro Member
    Investor · Charlotte, NC · Member since 2020 · 239 posts · 247 votes
    2y

    @Ola Owoyemi I have a local DSCR lender who does cash out refi with no seasoning and 80% LTV.

    0Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    2y

    I do this all the time with banks. But you have to buy the property a certain way for it to work. Don't buy it at the discounted amount. Buy it at the ARV with a rehab credit. Then refinance it as soon as it is finished.

    480-206-1209Podcast Guest on Show #287
    2Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 498 posts · 131 votes
    2y
    Quote from @Ola Owoyemi:

    Any lender offering cash out refi using DSCR loan without seasoning period. The rental property is in MD.

    Hi Ola,

    We have a couple of programs that may work for this. Let’s connect and see if we can be of assistance!
    0Reply
  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    2y

    We do offer a no-seasoning c/o refi in Maryland.  Do you have a tenant/lease in place?

    0Reply
  • Dallas Sauer
    Lender · Phoenix Arizona · Member since 2018 · 89 posts · 51 votes
    2y
    Quote from @Ola Owoyemi:

    Any lender offering cash out refi using DSCR loan without seasoning period. The rental property is in MD.


     Cash out after 90 days. Before that only rate and term.

    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    2y

    If you completed rehab that'll support the appraised value, I can do up to 80% LTV depending on experience level and FICO with no seasoning. Property value has to be at least $100k.

    [email protected]330-354-6590
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    0Reply
  • Tami Goodwin
    Member since 2024 · 8 posts · 5 votes
    2y
    Quote from @Shiloh Lundahl:

    I do this all the time with banks. But you have to buy the property a certain way for it to work. Don't buy it at the discounted amount. Buy it at the ARV with a rehab credit. Then refinance it as soon as it is finished.


     Shiloh, I need you to expand on this. I need to know because I purchase most of my properties with cash because of the great deals I receive from the seller.

    0Reply
  • Tami Goodwin
    Member since 2024 · 8 posts · 5 votes
    2y
    Quote from @Brittany Minocchi:

    If you completed rehab that'll support the appraised value, I can do up to 80% LTV depending on experience level and FICO with no seasoning. Property value has to be at least $100k.


     Brittany, can you do GA?  I have the same situation. I purchased the property today. I am starting rehab on Friday. It should be complete in 2 -3 weeks at the most. 

    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    2y
    Quote from @Tami Goodwin:
    Quote from @Brittany Minocchi:

    If you completed rehab that'll support the appraised value, I can do up to 80% LTV depending on experience level and FICO with no seasoning. Property value has to be at least $100k.


     Brittany, can you do GA?  I have the same situation. I purchased the property today. I am starting rehab on Friday. It should be complete in 2 -3 weeks at the most. 

    Yes I can - feel free to send a message with more info 
    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC520 Reviews
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    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y

    It's possible but we need to verify the rehab, and there will be a second opinion of value internally from the lender on top of the appraisal report. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 570 Reviews
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    0Reply
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