Florida Rentals - Refinance to Conventional Loan 85% LTV?

Question

Are there any lenders out there that can provide a cash-out refinance for an investment property at 85% LTV?

For example, I have a property worth 200k. PP = 110k + Rehab = 30k (All-in 140k). We want to keep it as a rental but the loan companies I'm talking to won't budge from a 25% down payment upon the refinance, leaving a small margin to avoid coming out of pocket when paying off the hard money.

I am a new investor and obviously need to do my homework but any insights will help!

Caroline Gerardo · Answer

You are going to get stuck with lenders not wanting to touch this refinance because is a high cost loan. Cash out non owner SFR if FICO is 720 middle pricing adds as follows: .5 refi non owner 2.625 Cash out 1 = 4.625 title $390 escrow $590 recording $140 notary $200 appraisal $450 + maybe tie in $130 and... total percentage in points and fees is about 6.5% makes the APR too high to pass the test. A small loan with lots of exceptions becomes HIGH PRICED Mortgage no conventional lender wants to touch HOEPA https://www.consumerfinance.go...    Let me explain: there are so many layered pricing additions because it is considered high risk plus title, escrow, recording, appraisal that it exceeds what the law allows for a conventional loan to be sold to Fannie/Freddie.   A few non QM lenders will do this if your income is strong with that 720 score

Griffin Goudreau · Answer

SFR

@Erica Larence

Erica Larence-Penna · Answer

@Griffin Goudreau is it a single family or multifamily?