Commercial Refinance @ 75% LTV

7 Replies

I'm having trouble finding a lender of any type that is willing to give me a commercial loan for my rental @75% LTV.

I’m open to working with any lender (traditional, hard money, private).

NOTE:

-The appraised value is $88,000.

-I close on the property in less than a week.

-The property is currently occupied with a new lease and rents for $875.00

- The home is located in Suffolk, Va (23434)

- Fair Condition, no repairs needed.

Originally posted by @Jhory Miller :

I'm having trouble finding a lender of any type that is willing to give me a commercial loan for my rental @75% LTV.

I’m open to working with any lender (traditional, hard money, private).

NOTE:

-The appraised value is $88,000.

-I close on the property in less than a week.

-The property is currently occupied with a new lease and rents for $875.00

- The home is located in Suffolk, Va (23434)

- Fair Condition, no repairs needed.


The "I close on the property in less than a week" could be a problem.

What's the issue?  Loan size?  That limits your lenders.

Debt ratio?  Could be, but if you go portfolio, that's not an issue.

Credit?  Won't know until we look at credit.

Fair condition."  Do you need hard money?  Again limiting because of loan size.

Stephanie

 

I’m looking to refinance after closing on the current loan. Theirs no issues the current loan. My lender doesn’t have an issues.

I'm looking to refi out of this loan immediately in order to buy additional real estate. However other lenders that I have sought out are only willing to give me 65% LTV.

@Jhory Miller why did you not just start with a rental loan? Did you need hard money for a specific reason? The thing now is that you will more than likely need to wait for some seasoning. Finding why you are looking for isn’t hard if you work with a mortgage broker, but seasoning might be.

I’m in the process of closing on the rental loan now. Its a conventional loan 15% down.

You're right finding a lender isn't an issue, more so the fact that they are only willing to lend up to 65% LTV.

I'm looking for a lender of any sort that can refinance at least 70% LTV.

Why are you refinancing out?  What are the lenders telling you who aren't offering what you want?

It looks like you have a 15% loan and you are looking to refinance to a 65% LTV to invest more money in real estate. Your new loan is going to require you to bring money to the table which will make less money available for your investing, at least in the short term. A Fannie/Freddie mortgage will likely give you the best terms.

@Jhory Miller Not knowing your purchase price, but guessing you bought low enough you think the appraised value will give you your 15% cash back out. Hard money will pretty much wipe that away, and depending on your experience a commercial lender will want you to be more experienced before lending to you. Also, paying off your conventional mortgage in less than six months will probably cause your mortgage broker to not get her commission for all the work they did getting your conventional loan, so not a good idea if you want to keep your relationship with your broker. I think your best bet is to wait six months and get another conventional on the new appraisal.