Why? Lending Question on Loan %

[Dan Cournoyer]

When purchasing investment properties I've found lenders will allow 80% and in some cases 85% loan on the purchase price. I'm closing on one next week using 80% loan. My next property I'm hoping to do a BRRRR - purchase in cash and then refinance after 6 months. I just learned that the amount of loan on a 6 month cash out refi is only 75%. Does anyone know why it's lower? Have you used a lender that allows 80% or more on a 6 month cash out refi? Have I not been listening close enough to the podcast? I never heard them mention this. Thanks!

[Caleb Heimsoth]

Originally posted by @Dan Cournoyer:

@Caleb Heimsoth I know the Fannie rules. I’m wondering if anyone knows why Fannie rules go from 80% down to 75% for purchase vs refi. And I’m asking if anyone has found a lender who will offer 80% on a refi, maybe a portfolio lender.

Refinances will always me more conservative in both refinancing LTV and appraisals because it's "harder" to determine value since there's no purchase price.

Commercial lenders should be a To get you 80 LTV