suppose i want to refinance a fully paid for rental property that is actively occupied by tenants. what does the bank require when approving a refinance?
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
5y
Dannison,
You do not need tax returns or income if you use the rental income of the property. That would be a Debt Service loan where the rental income qualifies. The rental income would have to be 115% greater than the proposed PITI (principal, Interest, Taxes, insurance)There are a lot programs that help borrowers finance/refinance their primary/investment properties.
Rental Property Investor · Madison, WI · Member since 2019 · 15 posts · 10 votes
5y
@Dannison Arias
It's just like getting a mortgage, so you'll most likely need those things, yes. If this property is not in an LLC and just in you personally, you'll provide work history and pay stubs, information about your current mortgage loan if there is one, data on how the rental is doing (lease, vacancy rate, monthly rent), etc. We just did a refinance and needed almost everything we needed for the original loan.
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
5y
Dannison,
You do not need tax returns or income if you use the rental income of the property. That would be a Debt Service loan where the rental income qualifies. The rental income would have to be 115% greater than the proposed PITI (principal, Interest, Taxes, insurance)There are a lot programs that help borrowers finance/refinance their primary/investment properties.