Recommendations for Refinance Companies in Cleveland, OH Area

[Eva Zino]

Hi everyone,

I'm exploring refinancing options for a property in the Cleveland, OH area and would love some recommendations.

Thanks a lot!

[Jaycee Greene]

Hi @Eva Zino. Welcome to the BP Forum! What type of property do you want to refinance, what is your current loan balance, and how much do you think the property is worth?

[Eva Zino]

Single-family home, no loan, property value ~$120,000

[Chris Seveney]

Quote from @Eva Zino:

Single-family home, no loan, property value ~$120,000

 Is it rental or owner occupied? Lenders here on BP that could assist with both but it is two different types of lenders typically.

[Eva Zino]

Used for Rental (currently rented)

[Stacy Raskin]

If a rental property a DSCR loan can be a good option.

More on DSCR loans: DSCR loans won't use your income to underwrite the loan. DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

[Dalton Summers]

I'd be happy to provide you a free loan estimate. Sounds like you need a Conventional or DSCR loan for your refinance.

[Erik Estrada]

Quote from @Eva Zino:

Used for Rental (currently rented)

 Hi Eva, 

When was the property purchased? Are you looking to cash out at the max LTV?

[Mary Ainsworth]

Quote from @Eva Zino:

Hi everyone,

I'm exploring refinancing options for a property in the Cleveland, OH area and would love some recommendations.

Thanks a lot!

 Hi Eva, I offer refinances in Ohio! I spend a lot of time in Cleveland too actually. I’ll send you a DM with more info, let me know if you’d like a quote or just have questions about the process :)

[Alfath Ahmed]

Quote from @Eva Zino:

Hi everyone,

I'm exploring refinancing options for a property in the Cleveland, OH area and would love some recommendations.

Thanks a lot!

I have some really good lenders that have rates between 6.875 to 7.5 % for DSCR that I can connect you with. I am personally doing a couple re-fi and purchases so that is what I am seeing from the best lenders.

[Dalton Summers]

Quote from @Alfath Ahmed:

Quote from @Eva Zino:

Hi everyone,

I'm exploring refinancing options for a property in the Cleveland, OH area and would love some recommendations.

Thanks a lot!

I have some really good lenders that have rates between 6.875 to 7.5 % for DSCR that I can connect you with. I am personally doing a couple re-fi and purchases so that is what I am seeing from the best lenders.

Alfath, what's the APR?

[James Wise]

Quote from @Eva Zino:

Hi everyone,

I'm exploring refinancing options for a property in the Cleveland, OH area and would love some recommendations.

Thanks a lot!

 HoltonWise can assist with investor financing in the Cleveland market. CLICK HERE.