Investor · Greenville, SC · Member since 2015 · 8 posts · 0 votes
I've BRRR-ed a few houses in the past three years and never had issues with either local or national banks (BofA) doing an 80% cash out refi to get my money back out. This past month all three of my local bankers said they've stopped doing them due to Covid concerns (economic, not viral, I assume).
Anyone else in the same boat? Anyone have a good lender for a cash-out refi?
Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
6y
@Will H. It's my experience that credit from local, smaller banks are tightening up.
I can usually get 80% LTV on loans from my portfolio lenders but they seem to be sliding down to the 70-75% range. I typically borrow from places like Arthur State, Coastal Carolina, Security Federal, GrandSouth Bank, Caro Financial etc in the Columbia area. So small, local-ish type places.
If you can wait a few months that may be helpful. I've found that commercial lenders are more motivated at the end of and the year due to lender bonuses based on the amount of loans made.
1) Call more places (happy to recommend some-just shoot me an email)
2) Wait if at all possible. I really think it will likely loosen up later on this year. I've had 3 different lenders tell me specifically to wait if I could.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
6y
@Will H.
From my understanding (I'm in the middle of a cash out refi) Fannie and Freddy aren't allowing cash out refi right now. Thru a friend I would have had to refi the current mortgage for a lower rate and take a HELOC. I went with my small bank that I have commercial mortgages for my rentals, they lend in house so cash out refi was no problem.