All Forum Posts by: Nate Herndon

Hi Hannah, the DSCR loans that I utilize for investor clients will allow for as little as 90-day seasoning to access 75% LTV of the full appraised value. Unfortunately, those loan programs do not accommodate owner-occupied properties - and that will be a common theme for all private lender DSCR programs.

My local banks here in Missouri offer 6-month seasoning on their 30-year fixed conventional programs, and no seasoning requirements for their 5-year balloon commercial programs.

If you have not done so already, I would recommend checking in with your local banks on which programs would be a good fit for your personal residence refinance.

Hey Jordan, 30-year fixed DSCR programs that I utilize for clients have the following seasoning limits on cash-out refinances:

-Less than 90 days: 75% LTV or 100% LTC, whichever is less.

-90 days or greater: 75-80% LTV

Hey Austin, you nailed it. 75% LTV on that $100k property would cover your payoff and give you $10k to cover down on closing costs. Let's say your payoff was $70k instead, an 80% LTV rate/term refinance (or no cash-out refi) would be possible; that would still cover down on the payoff and closing costs. Typically your max LTV for cash-out will be 75%, while 80% is available for limited or no cash-out. Whatever funds remain after the payoff + closing costs are covered is yours to take home.

Man, that is a great question. Following this thread as I am interested to hear any advice. You can't be the first person who rolls 1031 funds from one fix-and-flip to the next in under two years.

I just wrapped up financing a quadplex and duplex for someone on a 1031 and learned more about what the exchange funds can/cannot pay for via the HUD. Pretty interesting!

Hi CJ, I quoted some 5+ unit multifamily this week between 8.50-9.25% (depending on prepayment penalty). That was at 75% LTV.

80% LTV = 9.50%
75% LTV = 8.75%
70% LTV = 8.50%

Those are 30-year fixed rates. The 5/1 ARM program will be -0.25% on rate. DSCR requirement is 1.15 minimum, or 1.00 for a higher rate.

@Michael Hamby I would utilize a program that only looks for the property to be leased (regardless of use) and does not have a DSCR requirement for loans under $500k. How much do you owe on the house?

Hi @Samantha Storz, welcome and congrats on setting 2024 as your year to start investing! I routinely work with new investors and have closed a number of rehab loans in Philly for first-timers. 10-15% down payments are pretty attainable, even for someone with limited experience. 

I know that this forum is chuck full of resources. You are welcome to shoot me an email for a property data tape to track prospective deals, example scope of work templates, and a list of program options for BRRRR investors.

I also have clients that I can put you in touch with in the Philly area who are BRRRR professionals.

@Brian G. On the 90/100/75 program, 2.5-3.5 points (depending on loan amount) + $1995 underwriting/admin/legal fees. Rates vary from 10.5-12% with interest on drawn funds only. The example below does not have an upfront appraisal cost.

Hey Dylan, even for a first-time investor there are programs I utilize often that offer financing for the following:

90/100/75
o 90% of purchase price
o 100% of rehab budget
o 75% loan-to-ARV max loan amount

Hi @Jordi Valado, happy to provide some information on that. My clients in Memphis (and Southhaven, MS) are routinely looking for 75-80% LTV on their BRRRR refinance. That is totally doable.

Here are where those maximum loan amounts will land:

o Under 90-day seasoning:
75% LTV or 100% LTC (lesser of)

o 90+ day seasoning:
75-80% LTV for cash-out refinance
80% LTV for rate/term refinance