Advice on cash out refi on non warrantable condos

Member since 2020 · 7 posts · 1 vote

Hello, I could use some advice on my current situation. I’m finishing up renovation on 2 non warrantable condos that won’t qualify for traditional financing. What would be the best loan product to seek to cash out refi?

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Andrew Garcia
Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
4y
Hi @William Charles, you will have to utilize a non-QM loan on this. You have two options:
Option 1: Full Doc. Lower rate but stricter underwriting.
Option 2: DSCR. Higher rate but more lenient underwriting.
There are obviously a lot more differences but, in a nutshell, if you value speed and ease over rate, go with DSCR. If you value rate over speed and ease, go with full doc.
Please let me know if I can be of any assistance.
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Nick BelskyBusiness Member
Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
4y
@William Charles
A few DSCR lenders are competing right along with full doc loans. Keep shopping around or get with a mortgage broker to shop for you.
NWCs add a variable but are still able to be reasonably financed. The LTVs for the Cash Out may be a bit lower compared to SFR or 1-4 unit.
Cheers!
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William Charles
OP
Member since 2020 · 7 posts · 1 vote
4y
Quote from @Andrew Garcia:

Hi @William Charles, you will have to utilize a non-QM loan on this. You have two options:
Option 1: Full Doc. Lower rate but stricter underwriting.
Option 2: DSCR. Higher rate but more lenient underwriting.
There are obviously a lot more differences but, in a nutshell, if you value speed and ease over rate, go with DSCR. If you value rate over speed and ease, go with full doc.
Please let me know if I can be of any assistance.

Thank you for the advice!
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William Charles
OP
Member since 2020 · 7 posts · 1 vote
4y
Quote from @Nick Belsky:

@William Charles
A few DSCR lenders are competing right along with full doc loans. Keep shopping around or get with a mortgage broker to shop for you.
NWCs add a variable but are still able to be reasonably financed. The LTVs for the Cash Out may be a bit lower compared to SFR or 1-4 unit.
Cheers!

Thank you for the advice!
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