When purchasing a flip with hml that you would now like to keep for rental and refi with cash out what's the steps and what fees to expect?
Talk to a few different lenders in the area...the fees can vary greatly. I've found local (to the property) banks and credit unions to be the best and have the fairest rates. They can also walk you through the exact process you'll need to go through to refi. Best of luck!
It's really all going to depend on if you qualify for conventional financing or not.
If you do, then find a local bank, a local credit union, a local broker and see who has the best deal.
If you don't qualify for conventional financing for any of the myriad reasons including property seasoning, then go with a portfolio lender that allows loans that were denied for the reason you were denied.
@Stephanie P. Great info thanks
@Michael Albaum thank you
@Michael Albaum the biggest question is I've always heard you get it rented for six months then refinance however customer service with the particular hml I'm using told me to refinance first
It all depends on what the lender will allow and each one has their own specific requirements/guidelines.
Well for conventional are you just refinancing the loan? Or cashing out as well?
For a rate and term refinance, there are no seasoning requirements and for a SFR you would need an LTV of 80% and an LTV of 75% for a multi-family.
If you are looking to cash out as well. You can after 6 months of owning the property with an LTV of 75% for a SFR and an LTV of 70% for a MFR.
As far as rates and fee’s you will see the lowest with conventional financing, typically. As mentioned each lender is going to be different. Most conventional lenders have a will be competitive with rates. A better focus would be on finding an experienced lender that does cash out financing and works with investors.
@Michael Albaum ok got you
@Jerry Padilla thanks makes a lot of since
@Tycee Tyler following. I would like to know as well.
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