Hi all! Have you had better success with larger lenders or more "home town" banks for refinancing your BRRRRs?
Large lenders I have found to give the best terms. The local lenders had higher interest rates and also wanted deposits to be held at their bank.
Regardless I think that you should reach out to everyone that you possible can when it comes time to refinance.
@Brian H. , The biggest variable that I see here is how much seasoning is required to get refinanced on the VALUE. your "home town" bank probably has a 12 month seasoning requirement. If you can tolerate waiting 12 months, then you will get the best rates there.....maybe. They loan will go on your personal name/credit as well.
In the private financing world, you can get refinanced on VALUE in as soon as 90 days with a few select lenders and the loan does not go on your credit. That is a HUGE difference and worth considering whether it is worth paying a point(ish) less in interest rate to have your money locked up for a year.
Thanks for that info. When we say "seasoning", are we talking how long it has been owned or how long it has been occupied by renters?
Thanks so much!
@Brian H. , seasoning refers to ownership, not occupancy. Hope that helps!
@Greg Downey That does help. I thought they needed to see renters bringing in income for a year. Thank you!
Originally posted by @Charles Kao :
It is more of a modified BRRR. But try the BRAT.
Glad that worked for you, but if this was a 30YF good rate Fannie loan then I'm pretty sure the underwriter screwed up.
Tell me how you read this:
This is the most exotic BRRRR I've personally worked on that was within the Fannie guidelines, and sure enough it was a biggerpockets.com member - you guys keep my days interesting. Purchased with 100% borrowed private money that was all paid back post-rehab.