Looking for a Lender to cash out refinance Philadelphia Property

[Milissa Kernahan]

Hello,

I own a free and clear property in Philadelphia that is completely renovated and rented to a tenant paying $1250 per month. Looking to pull the equity out to pay off some debts (cash out refinance). Credit score is on the lower end from the debts but still above a 600. Any advice or lenders that lend these types of deals? Any advice is appreciated. 

[Brandon Beardt]

Quote from @Milissa Kernahan:

Hello,

I own a free and clear property in Philadelphia that is completely renovated and rented to a tenant paying $1250 per month. Looking to pull the equity out to pay off some debts (cash out refinance). Credit score is on the lower end from the debts but still above a 600. Any advice or lenders that lend these types of deals? Any advice is appreciated. 

 Hi Milissa,

Yes there are different loan options for you to consider. If you're looking for a more business purpose, low/no doc type of loan product, DSCR can be an option for you. As long as the monthly rent is greater than or equal to the projected monthly mortgage payment, you're good to go. HOWEVER, credit plays a huge factor with qualification & pricing from lender to lender. Cash-out refinance is not an issue. Max LTV for cash-out is typically 75%, but may be reduced due to your credit, so make sure to check on that when shopping around. I would almost recommend trying to get credit up a bit more ASAP, maybe in the higher 600's, as that'll open you up for more lending opportunities/programs.