Typical LTVs for Turnkey Out of State?

12 Replies

Hi All,

I'm looking at turnkey properties in various states and was wondering what sorts of LTVs people are finding out there.  I was able to swing 80% pretty easily here in my home state of Texas (good income, excellent credit), but I seem to recall that banks tend to like more equity from "absentee" investors.  Or does being out of state not make a difference, and I should just talk to lots of lenders?

Any thoughts much appreciated here. I'm hoping to find lenders that will do 80% LTV in the cities I'm looking in.

Thanks!

Brian

Originally posted by @Brian Bistolfo :

Hi All,

I'm looking at turnkey properties in various states and was wondering what sorts of LTVs people are finding out there.  I was able to swing 80% pretty easily here in my home state of Texas (good income, excellent credit), but I seem to recall that banks tend to like more equity from "absentee" investors.  Or does being out of state not make a difference, and I should just talk to lots of lenders?

Any thoughts much appreciated here. I'm hoping to find lenders that will do 80% LTV in the cities I'm looking in.

Thanks!

Brian

You may want to ask a specific lender, but I have seen people who invest out of state with 80% LTV. I would just ask around and see what they require.

Tom Ott, Real Estate Agent in OH (#2016003865)
440-749-4043
I've never heard of any "out of state" restrictions forr conventional lenders. Our portfolio product has amazing rates, but requires 30% down.

@Brett Robinson Just out of curiosity, what are "amazing rates" these days for investors at 30% down?  It's been about a year since I was up to speed.

3.75% for 30 year fixed. 3.0% for 5/1 ARM. both at zero points.

You can go to 85% LTV using a Fannie Mae loan on a SFR. Any mortgage lender should be able to do this type of loan?

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Originally posted by @Brett Robinson :
I've never heard of any "out of state" restrictions forr conventional lenders. Our portfolio product has amazing rates, but requires 30% down.

 Brett, can your bank (Bank of America?) do those rates on an all cash out refinance?  That is on a property with no debt that has value add, and is seasoned 6 months since purchase.

Larry Fried, Real Estate Agent in OR (#201211636)

@Larry Fried . I pulled cash out refinance rates for Oregon and got 4.0% for the 30 fixed and 3.25% for the 5/1 ARM. This is assuming it is investment units.

@Brian Bistolfo - I guess you are asking many different things. First you need to understand the risk and reward in your own backyard, investors from CA are dumping money ignoring high property taxes, high state taxes back in CA and  bonus foundation issue.

OOS is a fashion make sure you have a game plan.

Lending and LTV, in general 20% down payment for 1- 4 properties, 25% or more 5 -10 properties. With high LTV, good credit score you might find low interest rates.

@Brett Robinson - I will drop you PM for unbelievable low rates. I have 4-85% - 5.125% with 20% - 25% down. The best rate I have is 3.5% for 15 year fixed where LTV is around 25%.

Good Luck

Vivek 

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