BRRR method - lenders that will cash-out refinance SFH at 80% LTV

7 Replies

Hi all!

I just bought my first BRRR property under my LLC in Elizabethtown, PA. I'm having some difficulty finding a lender that will refinance my hard money loan where I can cash-out refinance at 80% LTV. I have found some local lenders at 70% LTV but no one that will do 80% LTV under my LLC. I was told that I can't do 80% LTV because I used my LLC. Is that accurate?

Any advice would be greatly appreciated. Thank you!

Originally posted by @Jordan Stewart :

Hi all!

I just bought my first BRRR property under my LLC in Elizabethtown, PA. I'm having some difficulty finding a lender that will refinance my hard money loan where I can cash-out refinance at 80% LTV. I have found some local lenders at 70% LTV but no one that will do 80% LTV under my LLC. I was told that I can't do 80% LTV because I used my LLC. Is that accurate?

Any advice would be greatly appreciated. Thank you!

LLC lenders generally cap refinances at 75% and go lower with no seasoning on title. Conventional financing is the best way to go in the beginning. The money is the cheapest, but lending to an LLC is not allowed. Unfortunately, you're already pretty far along in the process. Once you're using the LLC, you'll be restricted to a business purpose loan and those lender's guideline restrictions.

Tom

70% is pretty standard however You can get 80% LTV the question i would have is what is the value of the home?

Loan amount would have to be over 100k and credit would have to be over 720 to qualify 

@Jordan Stewart you stated that you purchased under your LLC but are you referring to the LLC as just the owner or both the owner and the borrower?

If you are willing to borrow the money in your name then you can cash out 75% if property is a SFR or 70% of your propert is a 2-4 unit.

@Jordan Stewart you answered my question. The LLC is the borrower.

Often times the investor has the title in the name of the LLC but the actual borrower is the individual investor. In that circumstance the borrower would qualify for a conventional residential mortgage.

Sorry for the confusion.