Cash Out Refi Lower Than Expected

[Chris Marette]

Hi Everyone,

I need some guidance or tips or any ideas in regards to an appraisal that did not come in as expected during a cash out refi. I have done several in the past and most I have been satisfied with the outcome however this one was not as expected therefore I am trying to get creative. Long story short I disagree with the appraisers value of the home and will place rebuttal however that appraiser also completely messed up rental values so the DSCR has really impacted what I was expecting to get out of the property. I was able to rent the home for $2600 but the lender is accepting the appraisers rental value of $2050. Is this standard practice or is there any lenders out there that actually accept what the home is rented for? Additionally this hard money lender is at 75% loan to value are there any lenders offering 80%? I appreciate any input or suggestions.

[AJ Wong]

Hi Chris, that's not ideal but it happens. 

- If you have a lease they should be utilizing that rental amount not common rents. If it's not an active lease..generally just needs to be signed. Some lenders will even allow the 'vacation rental' projections. 

-Most lenders have an appraisal appeal process.

- See if another lender can use a lower qualifying DSCR ratio and 80LTV is possible on a cash out refi. They would likely want a new appraisal but some will accept an appraisal transfer.

Check in with @Joseph Chiofalo they have a wide range of no ratio programs..