Refinance cashout

6 Replies

hey guys I was wondering if if anyone can please help me with this dilemma!… We have a property that is owned 100% free and clear and have eight other rental properties that have mortgages. We tried to refinance the property but the bank that we worked with did not allow a cash out refi when the owner has six loans under their name... The person setting up our loan mentioned that if we didn't go with Fannie Mae or Freddie Mac we would be able to find a lender that would refi a cash out does anybody know what one of those banks might be?? I would love any feedback and we are very eager to get our first flip going thank you!!

@Javier Navarro

I would call all of the local community banks and credit unions. Usually they do portfolio lending there and may be able to help refinance the property.

Have you looked into a 1st lien home equity?  My bank Susquehanna now bb&t will do up to 85%.  Many credit unions will do the same.  This is many times a better option than a cash out refi because the fees are so much lower.

Originally posted by @Javier Navarro :

hey guys I was wondering if if anyone can please help me with this dilemma!… We have a property that is owned 100% free and clear and have eight other rental properties that have mortgages. We tried to refinance the property but the bank that we worked with did not allow a cash out refi when the owner has six loans under their name... The person setting up our loan mentioned that if we didn't go with Fannie Mae or Freddie Mac we would be able to find a lender that would refi a cash out does anybody know what one of those banks might be?? I would love any feedback and we are very eager to get our first flip going thank you!!

 Javier,

He was telling you in a really nice way of course. Go to another bank and try. Banks are more flexible than MBS they can do what they want. However free and clear even with an MBS and I don't know all the details of the property. Provided you have the income to cover should be ok. Your not going to get a high LTV but free and clear should leave you with a lot of cash. However a bank is your best bet if you don't want to have to come up with endless documentation. Another words get it done quickly. Wells bought Wachovia I believe. Wachovia did a lot of investors. Cal Fed would have been really good but they were bought by Citi. If I had to pick Wells Fargo. Apparently (At this point) they don't care how many properties (Investment) you have and do Heloc's on investments get that if it is an option. Wells also picked up World Bank which did a ton of investor properties. Just make sure you use the Bank and not the MBS part of Wells. If that doesn't work try their MBS side. It will be a big pain in the *** however. The guy above mentioned BB&T which is a good option to.

Have you considered a mortgage broker? I am no fan of banks. 

This thread helped me.

Thanks

Agree with @Robert R.

Mortgage brokers can offer more options and make it work...I tried many times and never made it work with banks.... 

I don't have experience with Credit Union and Community banks though....may be I should try that...