All Forum Posts by: Weng L.

@Weng L. I understand your pain. I was going through a cash out refi of a BRRRR and was about to close at 75% LTV 30-year fixed at 3.625% under my LLC. Then Covid happened, and they said, sorry can't do 75%LTV, only 65%. Sigh. Decided to go through with it anyway even though I'm only cashing out 1/4 of what I put into the property, since I'm saving over a point. Close next week.

75% LTV 30-year fixed at 3.625% (investement property I assume) is sweet! I have never seen it below 4% at all time. If you don't mind, could you please PM me the lender?

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Originally posted by @Navid A.:

@Weng L.

I spent over 8 hours today calling new lenders to find a solution to the same problem. My typical portfolio lenders on the secondary market have halted operations or they have changed their terms significantly. Their new terms are almost laughable, they might as well just stay closed. Who would be willing to do a 55% LTV cash out at rates above 7% with a 2% origination? Get out of here...

Made the decision on my end to pivot our strategy all together. The deals are coming gents,now is the time to stay liquid. For this reason, I'm doing flips now rather than rentals. Just my 2 cents

Lol, 7% with a 2% origination mortgage, what a joke! Suntrust Bank offerred me no-cost unsecured personal line of credit $52500 for prime+1.25

I don't do flip because I don't have a good project manager, I have to manage progess of remodleing myself, so hourly income of repair-and-sell is very low, unlike repair-and-rent's hourly income from rental profit is really good over past 2 years - barely get a service call from tenants but mostly from HOA about paiting, roof cleaning, etc. You case many be different then

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Originally posted by @Matt Nico:

Originally posted by @Weng L.:

Today I am looking to do 30-year conventional cash-out refinance on my 6th property after rehab. My broker told me that they updated policy lately on rental property

-- 70% LTV (was 75%)

-- Can't do any loan if owner owns more than 5 properties. (was ok with up to 10 loans on 10 properties)

So basically I am rejected. Is this a broker specific rule or it is the same across all lenders during COVID-19? I don't see any change in Fannie Mae guild line regarding max of 10 properties that have mortgages.

Property is located in Fort Lauderdale BTW. Anyone happens to know lenders or brokers that can do 30-year conventional 75% LTV cash-out refinance with around 4% rate on rental property?

If you are in a big hurry to cash out then I would say call a bunch of lenders. I know a handful of them told me that the loan programs were either put on pause or adjusted for the lower 65%-70% LTV. However, I'm hearing a lot of the normal programs will start to become available in the first week of June.

If you can wait a month or two, I would just say to stay patient, rent your place out, and get the appraisal in a month or so when everything gets more back to normal.

Also you dont have to do a Fannie / Freddie loan. There are no doc loans that I see interest rates in the low 5%'s

No I am not in rush whatsoever. My 6-month seasoning time on this property ends on July 10th

Getting 5% rate makes no sense to me, I have good amount of HELOC avaiable on my primary home (at prime rate) and other rental properties (at prime + 1)

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I did 30-year fix 75% LTV cash-out on Feburary with 4.125% rate on my 5th investment property, that is why I thought it is going to be around 4% as well. I didn't know the impact of COVID-19 on lending until yesterday when I was about to start the same refinance on 6th property. I will let you know if I have a lender does it. Other folks mention that the policy will start to get back to normal after June 1st so we may just have to wait a little bit. My 6-month seasoning time ends on July 10th so I am not in rush actually.

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Originally posted by @Karen A.:

All of my loans for rental properties were 30 year fixed. I also put down at least 20%; I'm not sure if that was a factor or not.

Are they fannie mae/freddie mac loan or other loan?

fannie mae/freddie mac requires 20% down for first 4 properties and 25% down for 5th to 10th property

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Today I am looking to do 30-year conventional cash-out refinance on my 6th property after rehab. My broker told me that they updated policy lately on rental property

-- 70% LTV (was 75%)

-- Can't do any loan if owner owns more than 5 properties. (was ok with up to 10 loans on 10 properties)

Property is located in Fort Lauderdale BTW. Anyone happens to know lenders or brokers that can do 30-year conventional 75% LTV cash-out refinance with around 4% rate on rental property?

0 Votes

Today I am looking to do 30-year conventional cash-out refinance on my 6th property after rehab. My broker told me that they updated policy lately on rental property

-- 70% LTV (was 75%)

-- Can't do any loan if owner owns more than 5 properties. (was ok with up to 10 loans on 10 properties)

I am in Florida BTW. Anyone happens to know lenders or brokers that can do 30-year conventional 75% LTV cash-out refinance with around 4% rate?

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Yes all lenders will pull credit during approval, all conventional loan lenders will also pull credit one more time right before closing. But I am not sure if HELOC lenders pull credit right before closing or not.

Originally posted by @Chris Coleman:

At closing? They will generally pull credit check earlier, during the approval.

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Quorum Credit Union 80 LTV, rate is high, prime+4 for LTV>75 with many fees

Signature Credit Union 75 LTV, prime+1, origination fee 1%, borrower pay closing cost, can only process one loan at at time

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I know this is case by case, but I am wondering if your HELOC lender pull credit report at closing? And how many credit bureaus do they pull?

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All Forum Posts by: Weng L.

Weng L. has started 24 posts and replied 87 times.

Post: Cash-out Refinance - Policy Changed During COVID-19?

Post: Cash-out Refinance - Policy Changed During COVID-19?

Post: Cash-out Refinance - Policy Changed During COVID-19?

Post: Cash-out Refinance - Policy Changed During COVID-19?

Post: Conventional Loans terms

Post: Cash-out Refinance - Policy Changed During COVID-19?

Post: Cash-out Refinance - Policy Changed During COVID-19?

Post: Does your HELOC lender pull credit report at closing?

Post: HELOC on Rental Properties

Post: Does your HELOC lender pull credit report at closing?