All Forum Posts by: Nicholas Misch

UPDATE - Since I last posted in this thread 5 years ago we've since started operating out there in Lorain county. Doing a decent chunk of business in both Lorain and Elyria. Elyria is what I'd consider a C class neighborhood with Lorain being rougher than that.....My recommendation is for investors to utilize the Section 8 program when investing in both of these locations. Especially Lorain.

@Paul Sanchez Well, I have alarms going off in my head at the 85% cash out, LTV on a 4-plex...I have never heard of any lender doing that - ever. It's hard enough finding lenders that will write 80% LTV on single family homes right now. So this one broker saying that they can write 85% cash out on a 4-plex...that sounds impossible. I'm assuming this is an investment property - so if it's anything different let me know.

However, if they have prequalified you...they should be able to provide you a prequalification letter. Make sure that letter states 85% LTV, cash out refinance. MAKE SURE.  And will your rate be higher than your purchase loan?  This is a question for your broker.  If they can in fact do this, they would be the only lender in existence who can, and if we assume that they can write this - that means they are the only one that can answer that question.  For all other loans, a cash out loan will carry a higher interest rate than a purchase.  I mean, I cannot answer for all 8,000 lenders here - but in 99% of the scenarios a cash out loan will have higher rates or higher fees with them.

Hope all of that makes sense.