BRRRR Refinance step - Which bank has the highest LTV ratio?

Question

I have an investment property in Washington DC that I'm trying to refinance and get cash out of now that it is fully rented. I've heard from another local investor that there are commercial banks that will refinance you out at 90% LTV but he wants me to buy into his training program for $5k for this information and other guidance.

Does anyone know of a regular bank or commercial bank that does a 90% cash out refinance for an investment property?

Does anyone know of a regular bank or commercial bank that does a 90% cash out refinance for an investment property?

Nick Belsky · Answer

@Paul Jones

There are a handful still doing 80LTV cash outs on investments.  I've seen HML doing 85LTV here and there, but never heard of 90LTV.  It's probably out there, but likely not with terms worth considering.  Plan on 75LTV, as they are still very common, hope for 80LTV, and abandon the 90LTV idea.

Working with a mortgage broker can help you get to where you are looking much quicker...

Cheers!

Upen Patel · Answer

@Paul Jones Its likely that there is some lender out there doing a 90% LTV cash-out, though I wouldn't put my money on it. Been in the business for a while and done all types of loans. Haven't come across a 90% LTV cash-out refi on an investment property. To make things worst for your chances, markets are getting tighter. 2 huge Non-QM lenders went under in the last 2 weeks.

As the saying goes, "if it's too good to be true it usually is".

Christian Ehlers · Answer

Seems to good to be true especially on a cash out refinance, even when using private money it can be tough to convince anyone to let you have such little equity in the property.

Brittany Minocchi · Answer

I haven't seen any lenders higher than 75% on investments. Primary residence yes, but not investment. Maybe your guy misunderstood?

Issac San Miguel · Answer

DSCR is typically up to 75% depending on a few factors.

Paul Jones · Answer

I tried calling you but looks like your offices are closed.  Do you have a cell number that I can call you on?

Paul Jones · Answer

I do know that the investor is legit but agree with you, I'm not going to sign up for his program at $5k just to get that information.

Matt Cartwright · Answer

We can do up to 75% C/O on properties in DC under a DSCR loan if interested I can provide more guidance. As far as DSCR loans go it might be tough to find anything higher than 75%, I have not heard of any lenders that will do a straight loan up to 90. Are you sure you trust the person asking you for $5k just to get guidance? I would be careful about that situation it sounds a little too good to be true.

BRRRR Refinance step - Which bank has the highest LTV ratio?

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