Anyone work with WaMu?

Question

I am looking to cash out about 70% LTV on a NOO property, would WaMu go for it? What banks would be good for something like this? I need to pull money out to get to the next deal.

Account Closed · Answer

So what did you end up doing?

Account Closed · Answer

How are you structuring your deals? I am usually buying cash, sometimes paying cash for rehab then doing a refi once I get a renter for positive cashflow then move on to the next project. Is this a good way?

Ben Carmona · Answer

There are still a few lenders doing cash out with no seasoning up to 80%.  However, Fannie Mae finanlly posted their announcement of their expected change on 9/5/08.

Cash out will require 6 months and max # of financed properties will be 4.

Effective date is supposed to be 12/1/08 but the remaining lenders still allowing these (which is very few) will probably start implenting this in the next 30 days.

I'm staring a new post to clarify some things.

If you have someone that can work these for you then I strongly suggest moving forward right away.  If you get the rates locked in and files submitted to the lender your deal will probably be grandfathered in for 30 days.

Dawn Vought · Answer

I tried refinancing with WaMu for 3 NOO cash flowing rental properties in Kansas City about 2-4 months ago.  Based upon my horrible experience with WaMu, I don't believe they really want to do NOO loans anymore.  They dragged things out for months, and their appraisers came back with values that were as low as half of the true value (that was determined by a local licensed appraiser 2 months before).  The WaMu appraisers used "comps" that included multi-parcel sales (i.e., an investor bought multiple properties at one time from someone, and they used one of the properties as a comp), 2 BD 1 BTH houses when mine were 3 BD 2 BTH, etc.

I found their appraisal dept. totally incompetent.  I provided true comps that closed within 2 months timeframe, with everything similar, and was 0.4 miles away.  (Their comps were over a mile away.)  They came back and said they couldn't accept the comps because they were greater than 2 miles away.  I emailed them a PDF from Google maps showing the properties were 0.4 miles away, and suggested they drive from one house to the other.  They came back and said their "system" said it was >2 miles away, so there was nothing they could do.  That's just one example of what I dealt with.

Run from WaMu!

Kevin Adams · Answer

I was just told the Lloyds of London has a program that will do 70% Nonowner

Richard Warren · Answer

That is pretty much my model.  I buy and rehab for cash and then refi.  I have not attempted to refi in the current environment.

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Richard Warren · Answer

I have several loans from WAMU.  They are essentially out of the NOO business.  You can ask, but they probably will not do it unless theyâ€™ve change in the last few months.  You should look for a small local bank and hope for the best.

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