All Forum Posts by: Andrew Zamboroski

I want to use my equity in one of my SFRs to purchase a short-term rental (I currently have 8 LTR) . I have been searching for a bank that will do HELOC on a rental, and so far, the only one I have found that could work is Better.com. All the other banks I spoke to, like TD Bank, HSBC, and Signature FCU, have limitations, such as you can't have more than 4 mortgages in your name, or they can only use 3 properties to offset DTI.

Better.com offers a rate of 9.5-11% (depending on loan amount, credit score, etc.), and it also requires the property to be in my name (not in an LLC).

Does anyone know of a bank that will do HELOC on rentals in NC that do not require the property to be in the owner's name and/or is not limited by how many mortgages you already have on other rentals?

Are there other types of loans people use to pull equity from their rental to purchase additional properties?

I appreciate any input in advance.

Not only are helocs harder to find for investment properties, what you intend to do with the money matters. If the money will be tied into a project long term, a higher rate on your heloc can really impact your overall payment on the property (fixed debt plus heloc). Weigh the cost of your current payment plus a heloc payment versus a long term fixed rate on a DSCR loan or whatever route you plan to go.

0 Votes

Quote from @Mike Griffin:

What are you seeing for Lender Fees now? I’m borrowing on a 2 family for a New Hampshire investment property. Being quoted $1500 which seems high. 7.45% rate with 1 point charged.

As others have said it does not seem too bad! On an initial loan estimate, fees can be inflated depending on what they encompass. The rate for one point sounds reasonable though.

1 Vote

Quote from @Amanuel Gebrelibanos:

What are the ways to reduce putting down payment amount less than 25% for multifamily buildings with 6+ units?

Is there anyway putting only 5%-10%? If so, how?

As said by Mike, finding a partner could be a great option. You could also look to raise capital from family or friends as a good start.

1 Vote

Quote from @John Asher:

I am applying for a DSCR loan and am now a renter myself. I'm being asked to provide 12 months of cancelled checks in addition to a lease to prove that I'm renting. Providing a copy of the lease makes sense but having to get together 12 cancelled checks doesn't to me. Is that typical now?

Different programs have different requirements based on their end investor who buys the note. This is most likely to establish your housing expense history/ verification of mortgage (renting in this case). With so many loan programs out there for DSCR now, it’s important to find the right one 😊

0 Votes

Quote from @Hitanshu Shah:

Hi All

We are under contract on a 4-plex and I am shopping for Loan options. The purchase price is $415 K and we can put 20% to 25% down. Few brokers have recommended a 5 year Balloon loan but I want to explore the best option available in the market currently.

Thanks

30-year fixed loans are out there. A balloon may be slightly more attractive terms, but, you will have some inherit trade offs.

1 Vote

Quote from @Alexis Zuniga:

Currently looking at refinancing a property I have 100% payed off, currently running as a mid term furnished rental producing good money so not interested in selling. However my credit score has taken a hit to 620 and most programs require a 700 credit score. Has anyone had luck refinancing with this credit score in the Seattle area or should I just wait to raise credit score before trying?

There are certainly options out there, but, you will see a higher rate and lower ltv. If you can easily raise score, that may make the most sense. You could also review a bridge loan if you needed cash immediately but do not plan to be in the loan long term since you will improve your score.

0 Votes

Seattle, Washington

Quote from @Jalen Wilson:

I want to use the brrrr strategy to buy my first property, but I don’t have a w2 history. The work I do is for a waterslide company and they don’t report anything, and I cut grass as well while being a full time college student. I have a 755 credit score, 20k saved. What are my options?

Hard money loan to acquire and rehab, then refinance into a DSCR loan!

0 Votes

Shreveport, Louisiana

Quote from @Ann Mclean:

Can I find a lender to refinance an investment property that is fully paid off?. I need to pull cash out. Please point me in the right direction. Thanks

As many others have said, you have multiple options! How long have you owned that property and how you need to qualify are two things that may dictate which direction you go! Reach out if we can help, we assist investors in these scenarios all of the time!

0 Votes

Houston, Texas

If all you're concerned about it growth, DSCR loans would help you scale your portfolio without a DTI constraint (let me know if you want more info there). Qualifying on rents covering expenses versus your income is a nice feature!

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Quote from @Andrew Earle:

We currently have a bridge loans for two portfolios that we need to refinance. We have already refinanced one portfolio with an interest only loan and are looking to continue refinancing the next two with the same company but I am looking to make sure we are getting the best loan package for the next two before we proceed. Any suggestions of lenders for something like this would be appreciated!

The 30-year fixed portfolio loan with an intro 10-year IO period has been popular for clients of ours! I’m not sure how your first was structured, but, it offers a good option with a longer term if desired

0 Votes

Greenville, South Carolina

All Forum Posts by: Andrew Zamboroski

Andrew Zamboroski has started 0 posts and replied 275 times.

Post: Should i pull equity from my rentals using HELOC

Post: Lender Fee - How Much?

Post: What are the ways to reduce putting down payment amount?

Post: Being asked to provide proof of rental payments for DSCR loan

Post: Under Contract - Finance options on a 4-plex

Post: Best Refinance option?

Post: Is it possible to get a mortgage with no W2 history

Post: refinancing and pulling cash out of a fully paid off investment property

Post: Buying without counting towards DTI

Post: Refinancing two 20+ single family rental home portfolios