Cash out refi options and FHA

[Josh C.]

Hey BP,

I look pretty good on paper (credit, DTI, etc), but am having a hard time finding someone to do a decent cash out refi on on a couple properties I paid cash for. I have been offered 70% LTV of what money I have put into the property and not what the market or comps say its worth. I have also been offered a portfolio loan (one mortgage for two properties) for 50% LTV. Bush league I say. I have less than 5 mortgages so that's not the problem. I was hoping for 70-80% LTV of comps. Is that asking too much? Anybody know anyone who could help in Indianapolis Indiana? Also, I have owned both for less than six months.

On another note one lender told me FHA won't lend to me because I have more than 4 units. I said, "you mean they won't lend on something bigger than a 4 plex." He said, "No because you hold more than 4 units regardless of what they are or how they are financed or even if they are financed you can't get a FHA." I said, "If I own 4 sheds with deeds I can't get an FHA?" He nodded his head. That's incorrect right?

Thanks again!

[Shawn Holsapple]

Originally posted by @Rodney Kuhl:

@Josh C. I'd try Crane Credit Union or Financial Center Credit Union. I haven't used them myself (not at the point of a cash out refi yet), but I've heard they are good. If you give them a try, let me know what you find out please.

I'm closing my first two with CFCU next week. They offer 75% LTV [appriased value] on a 15 year term.