BRRR Conventional Financing Info.... Buy Rent Rehab Refinance.

3 Replies

  • The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
  • On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
  • On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
  • On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
  • If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
  • PROPERTIES LISTED FOR SALE
    For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
    For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
  • Cash Reserves Required For Other Properties Owned by Investor;
    • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
    • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.
Jerry Padilla, Lender in NY (#NMLS 1084877)
585-204-6923
Very useful information. Thank you

@Jerry Padilla , can you clarify what you mean by "#1-4 mortgages" and "#5-10 mortgages?"

I am guessing you meant "mortgages #1-4" and "mortgages #5-10," but wanted to make sure... The way it is written it sounds like you're talking about certain types of mortgages, in the same way that a pencil might be graded as a "#2 pencil," but I'm 95% sure that's not what you mean.

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