Civil Engineer · Firestone, CO · Member since 2013 · 85 posts · 21 votes
My wife and I have a rental in Colorado that we have had a little over a year. We would like to refinance or get a HELOC (to go towards purchasing another investment property) but everyone we call only offers up to 75% LTV. At this LTV if the appraisal comes in slightly lower than we think (my wife is a realtor and has done a CMA so we are confident but you never know what the appraiser will think) it may not be worth the refi (in our opinion). We are located in Firestone which is near Longmont.
A few other details in case it matters. Credit scores close to 800. Only debt is two mortgages and a small student loan that we really just need to pay off. No credit cards, no car payments, nothing else. DTI is about 26%.
I have searched BP and have found some banks/cu to contact that may do 80% LTV but none of them are in Colorado.
On a side note, we purchased the property with 20% down but it seems a refi is "too much risk" at 80% LTV? Seems to me like it is the same risk? FYI-I am obviously not a loan officer.
Real Estate Agent · Lakewood, CO · Member since 2012 · 3 posts · 0 votes
10y
Adam - have you talked with 1st Bank? They have portfolio loans for investment properties at 80% LTV and require title to be held by a (your) LLC. It's a great option for an investment property.
Email me directly and I'm happy to pass on contact information for a good banking officer at the Longmont (17th/Main) location.
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
10y
@Adam Smith If you want a conventional Fannie/Freddie loan 30 yr fixed and low rates, then you have to follow the rules. A cash-out refi is a higher risk then a purchase. So yes, the LTV will be different.
You can go the portfolio (i.e. commercial loan) route, but its going to be a 5-7 yr balloon and the rates are not as attractive.
Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
10y
@Adam Smith, sadly I don't have any answer outside what you have already found. I checked around last week and was only able to get to the 75% mark for a cash out refi. As long as your wife is being conservative on her CMA I wouldn't sweat it too much. She knows the area well so her numbers should be on point. Just make sure with the appraisal that the appraiser knows what number you are expecting. That can be a big help.
Investor · Lakewood, CO · Member since 2011 · 22 posts · 8 votes
10y
@Adam Smith, as Joe mentioned, try FirstBank as they offer portfolio loans to investors. Not sure they will offer the same terms on a refinance that they will on a purchase, especially without any history with them, but it's certainly worth a shot. Last time I spoke with a banking officer there they were offering 80% LTV, 5 or 7 yr ARMs (1 point to relock for same term) for 30-yrs and low fixed rates on 15-yrs, but again, we were discussing purchase financing options.
Civil Engineer · Firestone, CO · Member since 2013 · 85 posts · 21 votes
10y
@Joe Mulder, @Upen Patel, @Dan Mackin, @Daniel Kenney Thank you for the advice. I will check into First Bank and see what terms they will offer. I am not sure that an ARM for a long term investment is what we are looking for when rates are so low now. The other option is to save for a few more months and just take the 75% LTV 30-year fixed refi option. Just want to be ready for the next good deal!! Thanks again for all the options/advice!