All Forum Posts by: Kristen L Garner

Hi Johana, Sorry to hear about your contractor situation! You could do a rehab refinance where the refi pays off the original hard money lender and the new rehab loan provides you with the additional funds needed. Terms are generally 12 months IO.

Hey Tyler, depending on your credit, the max LTV for the cash out will be 75-80%. The new appraised value will be used for the LTV calculation. The DSCR ratio is calculated by taking the rental amount (either from a lease or the 1007 page of an appraisal) divided by the new monthly PITI mortgage. If you can hit 1.25+ you will get the best rates. But there are products that go all the way down to .75+ ratio and even no ratio. To have access to the most DSCR options you will want 6 months seasoning. You can refinance sooner than that but you'll need to paper trail all of the improvement costs that lead to the increase in value.

Hi Cody, There are finally some DSCR options available with no loan minimums! It has been a game changer for certain regions. Feel free to DM me if you want to run numbers.

Hello! There are lots of loan options available to investors.  As a non owner occupied property minimum down payments are:

Conventional (single family) - 15%

Conventional (multifamily 2-4 units) - 20%

Non-QM (1-4 units) - 20%

Certain Non-QM DSCR products allow the use of gifted funds for your down payment. Non-QM also allows you to close in an LLC. Some of the funds could come from your LLC partnership.

 Yup!

Hi Shahrouz, There are DSCR loans that offer no seasoning if you can show proof of rehab being complete. There are also some with 6 month seasoning where you don't need to show proof of rehab. Sounds like you are past the 6 month mark! The max LTV on a DSCR cash out is 80%. Feel free to DM if you'd like to run some numbers.

Hi Faiz, The same rules will apply whether the property is paid off or if it has an existing mortgage. It sounds like you may have 2 years of income history on your tax returns but the second year is substantially higher than the first? If this is the case, most lenders would average the two when calculating your income. There are some conventional loan products that will allow you to use just one year of tax returns but it depends on many factors.

Alternatively, there is a category of loans called non-QM. This includes bank statement loans where income is calculated based on 12 months analysis of your bank statements and not taxes. This is most common for self employment situations and in most cases you need to show you have been in that line of work for 2 years (business license or CPA letteR). There are P&L loans where income calculation is based off of a P&L made by your CPA. There are also P&L loans where a self made P&L statement can be used. In that case, most guidelines would require 3 months bank statements to confirm the info. There is also DSCR but it sounds like this will be your primary residence. DSCR is awesome, but only works for investment properties. DSCR (debt service coverage ratio) qualifies you based on the asset itself cash flowing. You take the monthly rental income and divide it by the monthly payment (principal + interest + taxes + insurance) and if that number is greater than 1 you have met the basic requirement for DSCR. There are products that allow you to go under 1, but 1+ will get you the best LTV for a cash out refi.

Lots of options! Best of luck!

 @Rob Schou I sent you a DM.

Hey Rob! It depends on how much equity you need to pull out and how long you think you will need it for. I'd run the numbers for a DSCR cash out refi and compare them next to a HELOC and a HELOAN. If you cannot qualify conventionally for a HELCO or HELOAN you could try a non-QM second mortgage.

@Alan Santini Yes, we do rural DSCR cash outs in North Carolina. If you DM me the address I can review it to see if it meets the rural guidelines for no LTV hit.