Cash-out refi, investment property 2 units, 70% vs. 75%

2 Replies

Hi - I am doing my first cash-out refi on a 2 unit I just closed on. I purchased the unit in cash and was told previously by banks I could immediately get a cash out refi of 75%. But now it looks like the fannie mae rules are a maximum LTV of 70% for a cash-out refi. (for what its worth, you can still get a 75% LTV loan at time of purchase) Does anyone know if this rule was just changed? any way around it? I assume local banks/lenders would go to 75% but I may not get as attractive of an interest rate.

@Charles Hura  Its 70%ltv under delayed financing exception. Even though you wait 6 month its still 70%ltv of appraisal value  to cash out for 2+ units. The only  difference will be under delayed financing the lender will  cash out 70% of appraisal value or initial purchase price whichever is less.  All  above guidelines related to conventional loan only.

Originally posted by @Charles Hura :

Hi - I am doing my first cash-out refi on a 2 unit I just closed on. I purchased the unit in cash and was told previously by banks I could immediately get a cash out refi of 75%. But now it looks like the fannie mae rules are a maximum LTV of 70% for a cash-out refi. (for what its worth, you can still get a 75% LTV loan at time of purchase) Does anyone know if this rule was just changed? any way around it? I assume local banks/lenders would go to 75% but I may not get as attractive of an interest rate.

 It's 70.