80/20 30yr does it exist?

[Clay Smith]

Where in the world is everyone on BP finding non-OO, 80/20, and 30yr cash out loans?

I have contacted 13 lending institutions (banks, credit unions) and inquired about cash out loans. Here are the results

• 2 - of them do not do those loans
• 6 - left multiple messages with no call back
• Hard to even find the right person (small banking, relationship managers, etc.)
• 5 - of them I set meetings and talked

Nowhere could I find a 30yr loan, 75/25 is possible without seasoning, and 80/20 is possible with 6 months + seasoning. Many of them prefer 5y-10yr loans, or a 5yr balloon with 15yr amoritization. Of the 5 prospective lenders, only 2 are willing to lend in 'war zones' and won't touch sub 50k loans.

I buy "all cash" 30k-40k properties, fix them up, rent them, and then cash out. Do I need to change my business model and approach lending a different way? I have been counting on the added equity to "refund" my cash and allow me to begin a new on the next purchase.

[Brie Schmidt]

It is illegal to not lend in a area - even a "war zone" it is called redlining and a massive lawsuit waiting to happen.

That being said I have not seen a lender in a long time willing to do a 80/20