Refinancing options, local lender changed their policies

[Cory Lucas]

So, I was getting really favorable loans from a local bank. They would finance purchase price on a BRRRR, repair costs, and if I did my figures right closing costs too and I would rarely be out of pocket. Now they've changed to where they're only doing 80% of PP and repair costs, so I'm out of pocket much more and they're telling me they "might" refinance after fix ups, cause they want investors to have more skin in the game. Which is fine, but I feel I should have more options out there and it's a little disheartening for there to be uncertainty there. I have my properties in an LLC, they're currently on 5 year ARMs with a 20 year amoritization.

What are my options? Stay local or is there a nationwide lender that does investment loans? Quit claim to my personal name to obtain better financing options? 

Let me know of other questions I can answer to help...

Thanks in advance for any and all help/feedback

[Nick Hiersche]

Secondary market is in shambles right now so every lender with a secondary department is tightening on credit, ltv, programs and of course raising rates accordingly as much as possible to protect the lenders. Until secondary stabilizes and more liquidity you will continue to see tightening all around. Sounds like your bank may not be portfolioing your loans anymore so are trying to clean it up for secondary sale. 

The terms you are referring to are commercial terms from local banks with commercial divisions. National DSCR lenders will not have the same commercial structure with ballons. No national lenders have ballon options on DSCR so if your looking for similar terms as your commercial rates your best bet would be an ARM with the DSCR as someone mentioned or a 40 year interest only DSCR. Those would be comparable without the balloon feature. Keep in mind that ballon feature is very risky so only commercial offers it and that is why they give you great rates under that of the national lenders because they are offering a balloon which is about triple the risk for you. National lenders will all have standard term loans which are better for you but rates and costs a little higher.