Looking for Refi referrals 85% LTV Duplex

[Jason Luongo]

Hey BP Folks!,

So I just signed a contract to build a duplex in SW Florida. Purchase price will be $265,000. Instead of getting a short term loan, the builder is financing it themselves (this cost has been built into the price). They have done a few of these in the same area, and they have all appraised between $300k - $305k. So theres a nice chunk of built in equity. I own the lot FREE and CLEAR. I paid $13,500 for it.

I am looking to refinance and get as much cash out as possible once construction is complete. I have spoke to one lender that said they do 85% LTV refi's pretty often. I would just like to talk to as many lenders as possible to get best idea of where I stand.

Please send me any contacts you might know, that do 85-90% LTV refis on investment properties (multi-family).

P.S. I have excellent credit >750 show good income and the property will cash flow GREAT!

[Alex Bekeza]

Be careful with any cash out refis over 80% LTV. Your interest rate will not only be pretty high but your also toeing the line of over leveraging with that.

80% is the highest cash out refi LTV I've seen from commercial lenders who have non hard money type rates. Everyone is noticing lending standards loosening up but beware of max LTV cash out refis at the height of a market cycle.

Sounds like one awesome project though!  How long is the process until you have the building finished and rented out?

Lenders will want to see the property rented out and will want you to have met their specific seasoning requirements.  When basing the loan off of the appraised value rather than purchase + construction costs they will have seasoning requirements of 6-12 months although we are starting to see some of these get reduced.  

I'm assuming the mortgage guy who does 85% LTV Cash Out Refis pretty often is most likely doing owner occupied properties.