All Forum Posts by: Account Closed

@Derek Williams If you want to keep your property for rental income, you should refinance when the construction is done and the tenants are in. Construction loan is short term loan with high interest rate, you don't want to pay high interest for years. Refinance it into a rental loan which gives you much lower interest rate make more business sense. If you don't want to keep your property for rental income, you can simply sell it and pay off the construction loan. You lock your profit when you sell the property and no refinance will be involved.

It can be done with one commercial loan. 80% LTV, 30-year fixed rate starting from low 4s depending on your credit scores and the cash flow of the properties.

Is the construction loan for your primary home or for an investment property? You can always look at commercial loan for investment property construction and NO DTI will be looked at.

@Steven Gebhardt Well, the majority of the bank loans follow Fannie/Freddie guidelines. There are some local banks that they service the loans on their book, so no Fannie/Freddie rules need to follow. Also, different banks have different strategies to pack the loans and sell them, so slightly different rates/LTVs can be allowed for some loans. 

@Steven Gebhardt terms/LTVs vary from lender to lender, bank to bank. Different lender has different business model, that's why you see the differences.

If just rate/term refinance and you have 700+ credit score, you should be able to get 80% LTV. Max 75% is limited to cash-out refinance.

There are 30-year fixed rate commercial loan available for investment properties, single or portfolio. Rates can be as low as 4%. Just need to find the right lender. I have some contacts if you dm me.

For portfolio loan, taking one out is easy, just do a partial release. You may need to pay a certain percentage (15-20%) over the loan amount you owe for that property just to pay down the principal. But adding one to a portfolio loan is not easy. Usually just get a new loan with the new property. Not much benefit to add one later on.

For purchase, you don't have to have the rent up to market rent. The lender can use 90% of the market rent to assess the NOI. For refinance, most of the lenders require active leases to support the NOI.

@Caroline Ragan When looking for a cash-out refinance, you are looking at a long-term loan. People normally care about the LTV, fixed interest rate for as long as possible terms as people want to lock the low interest rate at this era. Investors usually want 30-year fixed rate. Other than those, you should still compare the other fees to close, how easy and straightforward the process is.