Updated almost 10 years ago on . Most recent reply
Cash out refinance
Hello BP, I have a question about cash out refinancing. If I go for a loan to buy a rental property but get denied due to various reasons, low income poor credit, etc. but I go ahead and find an alternative funding source (hard money, crowdfunding) are cash out refinances after 6-12months based on the same underwriting as a conventional mortgage or are they solely based on rental income. In other words if I didn't qualify for a mortgage in the first place to purchase the property would I qualify for a cash out refinance? Explanation is appreciated this has been confusing me for a while now.
Most Popular Reply
If its rented out and producing cash flow, that counts as income and your DTI ratio changes. They typically count around 75% of the rental income towards the mortgage payment.