Questions to ask Indianapolis lenders for cash out refi

4 Replies

Searching for distressed properties in Indianapolis to purchase and renovate. I’ve spoken with agents, wholesalers, PM’s, some contractors, hard money lenders, etc. But still have yet to find a good local lender who can refinance a property out of the hard money I’m using to acquire and rehab it. I need to know that my exit strategy is solidified before I start offering on properties. 

I want to ask things like their LTV, basic rates and loan terms, seasoning period, etc. What are other good questions I should be asking? And who should I be asking these questions too? Perhaps you've done something similar in the past and know of a good lender who I could chat with.

Thanks BP!

  1. Points and interest
  2. Loan Terms
  3. ARV – Loan based on ARV or current value
  4. Upfront fees – origination/processing
  5. Inspection/Draw fees
  6. Draw criteria
  7. Down payment
  8. Penalties & fees
  9. Requirements & time to close

I personally wouldn’t qualify for a loan because I’m a 1099 employee and don’t have 2 years of consistent income history yet. But I have family members who I could potentially co sign with. I imagine I’ll need them to apply online or submit some kind of credit report/proof of income. But I mostly just want to know about their different loans first. 

But the loan would be for a refinance considering I planning to buy and rehab the home with hard money (spoke with a HML already). So I'm just trying to reach out to different lenders who could potentially Issue a loan against the ARV once it's all said and done. I just want to know all the specifics of their refi loans first.

@Casey Sbrana

The fact that you're a 1099 and won't qualify for conventional financing narrows the field.  Find a portfolio lender that will do no income verification. For cash out, generally, you'll be capped at 75% loan to value based on the new appraised value after 90 days, have evidence that work has been done and the property is stabilized.