Refinance Immediately? 23 posts by 7 users

Posted: 09/26/2008 at 09:34AM

you can refi as soon as you want but 99% of the banks are going to use the LESSER OF the original sales price or appraised value to determine the value they will lend on.

Posted: 09/27/2008 at 12:05AM

I have 1 lender left still underwriting to Fannie Mae's old guidelines. This will probably be changing by next week. Locked 3 in yesterday. All were over 4 financed properties with less than 6 months seasoning. My understanding is that lenders have until 12/1/08 to sell these off to Fannie. Hopefuly with them locked in they should be grandfathered in when the changes hit.

Of course there's always local banks as well. What city are you in?

There are local banks in OH that do these too.

Posted: 10/06/2008 at 05:25AM

I was recently quoted on a prop that has just seasoned 6 months, 80% ltv at 8% for a 30 yr fixed. Thats off a new appraisal. No, thats not commerical either. Think I will wait until a better offer comes along.

Posted: 10/07/2008 at 07:04AM

"It appears that you're advocating borderline fraud by having investors create a fictitous lien to circumvent the this being cash out instead of a rate/term refinance."

Ben,

Is there an advantage to doing this? Why would a lender look more favorable toward a refinance vs a simply cash out?

Or does a large note on the property just help justify the higher appraisal value after rehab?

Posted: 10/08/2008 at 05:23AM

Ben,

I still don't understand how it's more risky for the lender. If they are the first on a note, whether you are pulling cash out or just doing a refi, isn't the risk the same?

Thanks

Posted: 10/08/2008 at 01:08PM

. Thanks Ben.. That explained it. I didn't realize that it was actually looked at so closely. I thought it was all automated. I am surprised that if loans are actually looked at so closely, then I would think that the lender would see that the note on the home wasn't a legitimate lending source and was actually a fictitious company.

Since apparently they don't. It seems like an awful lot of work just to get slight rate decrease, unless of course there are other advantages to placing a fictitious note on a property?.

Posted: 10/23/2008 at 09:48AM

Hey, I have been doing some research of refinance immediately as well. I have been having some difficulty finding lenders who will refinance a property I own free and clear. I am holding it in an LLC. I am pretty new with finding financing, so any help at all would be great. Where do you suggest I start looking for this type of financing? Any lenders you guys can suggest?

Thanks in advance!

Posted: 10/23/2008 at 11:10AM

Wachovia is the last bank in town to help investors. They want too much. I've asked my credit union over the years about investor financing--they just don't do it and they're the largest credit union in the state.

You have to find and establish a relationshp with a regional bank (commercial division) and they go 15 years 5 year balloon with a decent rate.

BB&T and BOA used to do portfolios but don't know about today.

Ask some realtors that work with investors to give you a banker's name they know will will loan money.

Posted: 10/24/2008 at 09:43AM

Another issue is a personal guarantee; if my understanding is correct, many banks ask you to personally guarantee loans to an LLC. Isn't the limit 4 now? How do you get around this?

Posted: 10/24/2008 at 12:29PM

So if you get all your loans to your LLC you can personally guarantee as many as you want without there being an issue?