Credit Unions/Banks in Houston that will do Cash Out Refi's?

[Haley Henderson]

I have a few properties in my portfolio that I am needing to complete the Refinance part of the BRRRR. I have never done a Refi before, but I have learned through books, podcasts, etc that credit unions are the best place to build relationships for financing- which I completely agree. However, I have been on the hunt for local credit unions who complete cash out refinances, and all the ones I have talked with only offer home equity loans. As well as, do not lend to LLC's...

My question is- does anyone know of a credit union in the Galveston/Houston area that will work with investors and offer cash out refinances? If credit unions will not work with LLC's, how do you get around the DTI requirements with your personal finances on multiple properties?

Is DSCR refinances the best option if I can not find a local credit union/bank to work with me on these cash out refi's?

Thank you ahead of time!! 

[River Sava]

Hi Haley - 

It can be difficult finding the right lender, especially when credit unions aren't aligning with your needs. Sounds like a DSCR loan could be a great option for your cash-out refinance. Unlike traditional loans, DSCR loans focus on the property's income rather than your personal DTI, making them ideal for investors with multiple properties. They are also more flexible with LLCs and can streamline the underwriting process, focusing on the cash flow of the property which further assists scaling your portfolio.

I have included an article below about how DSCRs play into BRRRRs. Happy to connect and chat further!

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...