Cash out refi dfw area

8 Replies

Looking to find any commercial bank that will cash out refi to an llc after an all cash and rehab purchase.  having trouble finding any that don't require a long seasoning period.   I'm sure there has to be one in the dallas area! 

Thanks! 

Most will not refi to LLC. Typical "seasoning period" is 6-months. Then there is a limit of 10 SFH. These guidelines are regulated, so good luck finding someone that varies from them. I would be interested if you do.

@Benjamin Voorhis , many local chains of banks will do this. You're looking for a portfolio lender that holds their own loans, rather than selling them. @Duane Kidman , you're thinking about residential loans that will be resold on the secondary markets. Rules are different for commercial lending. So are rates, though. You'll typically be looking at 25% down on a 5/15 or a 5/20 ARM, rates around 6% to start, and you can negotiate the opening rate down as you do more business with them.

Benjamin, I work with Worthington Bank and will regularly buy properties at the trustee auction, then close on a refi within 30 days to get my cash out. But they really only want to do Tarrant County. I was recently talking to a LO from Prosperity Bank, which has branches all over DFW, and he said they'd do exactly the same thing, so they might be a good one to try.

Local community bank is your best source, they can work around title and appraisal seasoning requirements/overlays that many Fannie/Freddie lenders have.