Refinancing Under 80K

9 Replies

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! 

@Nathan Hillier I am in the Cleveland/Akron market and just purchased a property cash for $40k and approached Huntington to see if they would refi/put a mortgage on the property. They had no issue with it but would not do 100% they will only do 80% LTV which most banks will be similar. Might want to check with a local credit union in your area. Hope that helps!

Originally posted by @Nathan Hillier :

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! 

 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. 

@Chris Mason That's a really great trick, and I had no idea an agent had to find a lender that would do the deal. Ill look into it and see what i can manage to get. Thank you for your input! 

@Nathan Rude Ill be sure to contract them and see what happens, thank you!

Nathan Rude and Kevin Pruitt, were the houses you refinanced at that small of an amount your primary residences that you lived in or were they strictly investment rentals? Also curious if you guys have W2 jobs or are full-time investors or business owners?

I got a problem of my own where I've been self-employed for 2 years now as a full-time contractor, but only have 1 years worth of taxes, and have a house that has an ARV of 60k that I own free and clear but it needs 25k to rehab to reach that ARV.

I've got a potential hard money lender willing to help me with the rehab cost but before we can make that happen he needs an assurance from a bank who's willing to refinance the property after it's been rehabbed. 

So far I haven't been able to find a bank or credit union who's willing to put that on paper with on of the biggest factors being my self-employed status in only having one years worth of taxes at the moment. Was curious if anyone has recommendations on banks that will do business with me in Fort Wayne basing the refi off of the ARV of the asset or investment and not as focused on my personal employment status?