Up to what LTV are lenders refinancing?

Question

BP,

Probably been asked before but for those who have refinanced investment properties, up to what LTV will most lenders refinance?

Thanks.

Jeff B. · Answer

Very regional and bank sensitivity; Purchase will be different than Refi, SFR different than MFU. I've see LTV as low as 65% on cash-out refi.

Best answer will be found by calling (DUH).

Arthur Samoylovich · Answer

I recently asked Chase Bank and they stated for Townhomes (Condominiums) and SFR, Rate/Term refinance LTV is 80%.

Additionally, there are points involved when refinancing if you are trying to buy down your rate or conversely giving you money towards refinance closing costs for raising the rate somewhere in between the lowest you can obtain and where you are now.

Russell Austin · Answer

Chris,Thanks for the response. That greatly helps.Russ

Chris Mason · Answer

Hi @Russell Austin,

Rate/term refinances: SFR 85%, MFR 75%.

Cash out refinances: SFR 75%, MFR 70%.

Using in all cases, the more generous of Freddie or Fannie, fixed rate mortgages, and assuming you have an REI friendly lender. If there is some reason that you only qualify for Fannie, and not Freddie, or vice versa, or if you want an ARM, max LTV may be lower. I put SFR 85% in bold because not many are aware of that little guy.

Up to what LTV are lenders refinancing?

4 Replies