Good evening everyone - I would like to know if anyone has been able to refinance during this pandemic? Im in the middle of a rehab and will be looking to refinance in several weeks but unable to find a lender that’s offering a 30 year p&i product. If anyone has any suggestions, I would love to hear it!
Savannah, GA · Member since 2016 · 58 posts · 108 votes
6y
@Monte Watson I closed one at the end of February and I am working on one right now which should close in the next 2 weeks. Just like @Yoni Benimetzky said it is still available but more costly (rates, points, etc...).
Savannah, GA · Member since 2016 · 58 posts · 108 votes
6y
@Monte Watson I closed one at the end of February and I am working on one right now which should close in the next 2 weeks. Just like @Yoni Benimetzky said it is still available but more costly (rates, points, etc...).
@Rashad Luckett & @Yoni Benimetzky, you guys are 100% correct. I found a lender that is currently lending @ 70%LTV, 7.5% interest rate & 2.5-3.5 points, this might be my best option but I'm still searching for that 75%LTV....strictly due to the margins surrounding this particular property. @Rashad Luckett, do you invest in Savannah, GA or out of state? The reason I ask is b/c I'm not far from the area....I do all my investing in Charleston, SC. Do you either one of you guys have any recommendations?
Savannah, GA · Member since 2016 · 58 posts · 108 votes
6y
@Monte Watson all of my investments are in Savannah GA. Most recently I have been working with Ridge Lending Group. I believe they are nationwide. I have also worked with @Harjeet Bhatti on several loans as well and she is also great.
@Rashad Luckett thanks for the information. Alta Capital Group is the lender I referenced in my earlier post, they seemed to be helpful but I'll reach out to both lenders you mentioned. Thanks again.
@Rashad Luckett, I've reached out to Ridge Lending Group and hopefully they can offer something. Thanks for reaching out and also letting me know that they may not lend to an LLC.
Rental Property Investor · Beaufort, SC · Member since 2016 · 30 posts · 12 votes
6y
I'm in a similar boat. I finished a flip project circa Jan/Feb utilizing a 1yr interest only bridge loan to get into the property and conduct the rehab. My alternate exit for this (in case things went poorly) was refi into 30 yr fixed and throw a tenant in there. However, it seems the secondary non-QM lending market has no appetite for 30yr fixed products... I'm in Beaufort SC, so not far from you. If you make any headway with your refi, please let us know! I'm calling every bank/lender I can find. If I find one, I'll shoot them your way as well.
To get around the LLC thing (which i also put everything into LLCs), I'm considering doing a Quit-Claim into my name at closing to open me up to the residential lending space. Can always quit-claim back to the LLC later... But it might be worth considering in your case as well just to get the deal done.
@Eric Berman, the lenders mentioned in this thread didn't work for me but you should give them a try. The lender that I found that offered the 30 year product is Alta Capital Group however the rate is ridiculous at 8 - 9.5%.....which is borderline predatory. If I were you, I would ask for an extension or a conversion into an 18 or 24 month product, your lender should most definitely understand. I've also found, during my massive search, Investor rehab funding, Lending Home, RCD Capital, BridgeWell Capital & StraightLine Funding that all offer bridge products just not long term 30 year products. I hope everything pans out for you.
I'm wondering did you ever find a lender that was willing to reference you into a longer term 30 year loan? I'm in the same boat as you. I'm finding most banks have entirely suspended all of the 30 year product/programs. =(
Please let me know if you've found someone. Thanks!
Rental Property Investor · Beaufort, SC · Member since 2016 · 30 posts · 12 votes
6y
Even a 7.5% isn't terrible considering the choices out there right now. From what I'm seeing on the non-QM side, folks still in the game are quoting around 8.5% w/ a max 60-65% LTV and only a 5/1 ARM amortized at 30yrs WITH a 5-year step-down payment penalty. Also, minimum loan amounts around 150k I think. ^That's literally the only non-QM product I've found that's longer than 1-2 years. Definitely not great...
I think it's going to take some time before the non-QM secondary market comes back at competitive rates. If/When the secondary market comes back, both them and originators will likely try and keep rates inflated as long as possible...It took several years after the 08/09 recession for enough companies to jump into the non-QM sector before rates really started to drive down into the 6s and 5s...
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Monte Watson. Why are you looking at 30 year fixed rate mortgages? My LLC (with a personal guarantee) is taking out 25 year amorts, with a 10 year balloon, for 3.6% (local bank, 80% LTV). I know it depends on peoples situations, but who here is buying a rental and simply keeping one mortgage for the next 30 years? Look at other options and terms, and get that interest rate way down.
@Anthony Wick thanks for the insight. I may have been laser focused strictly on long term P&I products but the 10 year balloon option is something I never considered. Would you happen to have any lenders you can recommend or does your bank only deal in IA?
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Monte Watson. Local bank only. But, if I was you I would absolutely shop around to your local credit unions and smaller banks. Many people want the security of a long term fixed rate mortgage, but I'm plenty happy with my 10 year balloons. I'm refinancing a 7 year balloon right now that is only 2 years old, due to the lower interest rates.
Investor · Member since 2019 · 110 posts · 51 votes
6y
aww same boat. Also FYI if you are in the middle of a Refi traditionally DO NOT GET forbearance for any of your Rentals. we completely drop the ball here and getting a hold of these banks to be removed its been a pain. Been in forbearance for 2 wks and although I'm making all payments the wording in my statements that does fly for Traditional Banks.
Investor · Member since 2019 · 110 posts · 51 votes
6y
@Monte Watson thanks for starting this conversation. Any input, I have contacted all of my contacts and nothing. I too need to get from a Hard Money loan to a LLC portafolio loan.