Refinancing Under 80K
Hey BP, just wanted to reach out and ask if anyone knows about refinancing a residential duplex if its ARV is around $80,000 in Dayton, Ohio? Would this be possible?
The reason why i ask is because my current deal may fall short when we get the property appraised - Some valuable lessons learned here with not getting a proper ARV, and now questioning if the appraisal will follow through. My team and I have reached out to multiple banks and lenders, and have been told we cannot refinance our property if its appraisal is under $100k. Can anyone confirm that this is true for most if not all banks and lenders?
I appreciate the help!
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If curious, lenders not doing small loans is because of all the Dodd-Frank and CFPB stuff is expensive, and below a certain point mortgage lending institutions actually lose money. So this is Mr. Dodd and Mr. Frank "protecting" you, please be sure to write them & your congressperson each a quick thank you note.
Anywho, moving from problem to solution, you need to find a lender with a lower minimum loan amount threshold. Did you know that part of a listing agent's job, when they have a wonky property, is to have a lender that'll do the deal? So find the cheapest listing in the county, that isn't for a tear down or vacant lot but an actual home, call the listing agent, say you want to write an offer but your lender won't go that low, and ask for a referral. The person doing those baby purchase mortgages will also be able to do baby refi mortgages.