Refinance at 90% LTV

[Kyle Smith]

Do some banks or credit unions let you refinance at 90% LTV? I'm trying to do a BRRRR, but the numbers don't make as much sense when refi at 80% LTV. I want to do the project for the long term hold and cash flow aspect. I'm just worried it won't cover my cost to pay my lender back for the flip and I would have to come out of pocket or sell the house for minimal gain.

[Dominic Pizzi]

Hey Kyle!

Many cases of 90% LTV anything do not exist, and 80% LTV anything do not exist much either (unless it is a purchase on a rent ready property or a delayed purchase). A 75% cash out refi is more likely the higher scenario of the two, however when you do the refi they are paying off the total loan amount on the 12 month flip loan and netting the difference. You said you could go the conventional route and try to get the maximum a bank will let you get on a cash out, however there's different stipulations with a bank cash out refi than a HML.

[Jonathan Taylor]

@Kyle Smith Im in agreement. 90% Cash out does not exist. With the rates where they are, most properties dont debt cover at 80% LTV. This may be the case to either leave cash in the deal or if you are unable to cover the payoff of the first mortgage, you may have to sell.

A lot of borrowers are in this position so ask yourself what is the amount you are willing to leave in the deal.

[Kyle Smith]

Quote from @Dominic Pizzi:

Hey Kyle!

Many cases of 90% LTV anything do not exist, and 80% LTV anything do not exist much either (unless it is a purchase on a rent ready property or a delayed purchase). A 75% cash out refi is more likely the higher scenario of the two, however when you do the refi they are paying off the total loan amount on the 12 month flip loan and netting the difference. You said you could go the conventional route and try to get the maximum a bank will let you get on a cash out, however there's different stipulations with a bank cash out refi than a HML.

 Thank you for the info.

[Luis Maqueira]

we are refinancing 3 properties and Did some research.

long term after 6 month of owing the property  cash-out 

condos only upto 75% loan to value

SF properties 80% loan to value

Rental market is strong for the next 3 years so don't worry to get the income...

Do it BRR is the game changer

[Matthew Crivelli]

No 90% LTV cash-outs. Why would you want to take such a high LTV loan? @Kyle Smith

[Mark Fein]

Quote from @Kyle Smith:

Do some banks or credit unions let you refinance at 90% LTV? I'm trying to do a BRRRR, but the numbers don't make as much sense when refi at 80% LTV. I want to do the project for the long term hold and cash flow aspect. I'm just worried it won't cover my cost to pay my lender back for the flip and I would have to come out of pocket or sell the house for minimal gain.

If you occupy the property as your primary residence, you can potentally do a HELOC or fixed second mortgage up to 90% CLTV.

[Melvin List]

You can now do a primary residence and cash out to 89.99%.