|
POPULAR LINKS
INVESTOR'S FOCUS
REAL ESTATE TOOLS
FORECLOSURE RESOURCES
LANDLORD CENTER
FIND SPECIALIZED PROPERTIES
LOCAL RESOURCES
|
Rehab/Refi question
8 posts by 8 users
Matthew M.Ft. Worth, Texas 
|
I'd like to buy a mutifamily (4plex) REO that needs work using hard money. My question is, when I go to refinance, if LTV is below 80%, am I likely to be able to find a zero-down loan? I emailed one mortgage broker who said no, I wouldn't be able to. I'd like to know more before I get into a situation that may require me to lay out more cash than I'd planned. I don't want to refi and have to put 10-20% down. The property is in Ft. Worth, TX. |
||
|
|||
Eric F.Real Estate InvestorPortland, OR 
|
In today’s market, more than likely you will have to put something down or at least cross collateralize with another property. There are a few rehab loans still out there… Also, sounds like you need to find a lender that will go off of the completed value (after repairs) vs. the purchase price today. I was (key word “was”) doing these with no money down… Now they require some cash in the deal… Search around... |
||
Ryan H.Real Estate LenderLake Wylie, SC 
|
You can try excelmortgagecorp.com but be careful. They offer a rehab to perm no out of pocket deal. I can help also so email if interested. Thanks,
|
||
Christian M.Real Estate InvestorHarrisburg, PA 
 Moderator |
I think you mean, if LTV is ABOVE 80%, correct? Loan to Value (LTV) refers to the bank's portion of the loan, meaning the remaining portion is your responsibility. This may be by cash down, creative financing with a previous owner holding a note, or equity in the property due to a good buy. Remember the definition to help you use it to your favor. It is LTV of what to what? Obviously, the loan portion of the equation is a dollar amount you borrow. The value is an appraisal that you have some control over via the rehab you plan on doing. Theoretically, the rehab will increase the value. This all assumes you buy correctly. The value is the value based on comparable properties in the area. The better work you do up front (purchase price, manage rehab costs, rehab the biggest bang for buck areas, etc.), the more likely you can put " zero-down" on the refi loan. Some banks want 75%, others 80%, but this is the most common range. The lower your LTV the less likely you will need any cash. |
||
Vernon B.Real Estate Investor
|
For residential conventional loans, the underwriting is determined by certain guidelines. In order for some lenders to package the deal for the secondary market, it will need to meet certain qualifications. If you are planning to use a commercial loan, the rules change quite a bit. 75-80 percent LTV is your best bet to avoid down payments. Focus your improvements to the big appraisal areas, kitchens, bedrooms and bathrooms. Add more bedrooms and or bathrooms to a unit if you can. Look at adding a deck or finish a basement. |
||
Michael J.
|
Has anyone used this company for rental property loans? If so what do you think? |
||
Susan L.Real Estate ConsultantDenver, Colorado 
|
Be carefule here - many are saying that you can get 75-80% on the refi but that is typically for a 1-2 unit. On a 4-plex, I've found it to be closer to 70%. |
||
Kristi R.Developeraustin, TX 
|
The reason banks are not lending 0% dwn on Non-owner occupied properties is because the secondary market that is buying the loans in bundles are not making any money off of them. So the only private bank I know that Might give you 90%ltv is Worldsavings that was bought by Wachovia. Its called portfolio loans, and they dont sale the loan so they make the rules on who they lend to or not. Mind that you have to have atleast a 690+ to qualify for non-owner occupied with portfolio there. P.S.
|
||
Posted: 02/01/2008 at 01:21PM