Before I go and do something else stupid I wanted to put it out to the group and see if anyone had a creative idea. I recently purchased a rental property using HML and then refinanced with a conventional lender about a month ago. I work for a Big 4 audit/consulting firm with strict independence rules. I failed to check out the conventional lender "before" getting the loan. I honestly thought they were a small local lender and it would be fine. Big mistake. They are restricted and looks like I need to refinance....again!
Since it was literally just a month ago is there anything I can try to salvage? Title insurance / appraisal / etc to keep my closing costs down?
I was trying to think if there was something I could do with my LLC (since there is separation there). Or maybe it's time to bite the bullet and refinance all my properties (I have three now and buying a fourth) into a portfolio loan. Thoughts?
@Tony Castronovo Sorry to hear about the conflict of interest. I am well aware of what you are talking about. Used to be a consultant for PwC.
Unfortunately, you are out of luck. The refi is a new loan and nothing can be saved.
Why do you think you need to go to a portfolio loan? Fannie/Freddie allow you to have up to 10 financed properties.
With 5 properties including my primary residence I am pushing the personal DTI limits. So I would eventually need to move my properties into a portfolio loan or start to consider other options such as low doc loans (asset based) or private money. I figured if I needed to refi this one property again then maybe it makes sense to refi them all under a portfolio (or commercial) loan to free up my personal DTI. Otherwise I am just throwing away closing costs.
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