I am at the BRRRR stage in my current rental project. I also have a property that I want to refi and pull out equity.

A lender I have used before has no interest in cash-out right now due to portfolio risk of COVID-19 deferments.

I have been speaking with in-state brokers, community bank local lenders, and national lenders. They either don't want to do these loans right now, or they price them like crazy - $10,000 in points and closing costs.

Any suggestions on other lenders?

Thanks,

Scott

@Scott Hayes reach out to @Elise Marquette .  She's still doing cash out refis at great rates and reasonable costs.

Try @Upen Patel

@Scott Hayes

Are you trying to go with a Fannie Mae option or non-qm?  Big difference in lenders there.

Hello Scott,

Any luck?  

I ran into the same issues recently trying to extract some equity from a rental SFH I've owned for 10 years. I had two offers for 3.5%, 30 year conventional, 50% LTV, no points (the usual fees and taxes, of course). The next day it was a rollercoaster of additional points, then a glimmer of hope and then silence. Literally, calls not returned. One of the brokers did a loan for me a few years ago and the other was recommended by a colleague. I'll widen my search and I can wait, but I'm wondering what's going on.

Is it just that the market trying to digest the huge volume of refinance activity of late and it will return to normal, or is this expected to persist for some time?    

Originally posted by @Scott Hayes :

I am at the BRRRR stage in my current rental project. I also have a property that I want to refi and pull out equity.

A lender I have used before has no interest in cash-out right now due to portfolio risk of COVID-19 deferments.

I have been speaking with in-state brokers, community bank local lenders, and national lenders. They either don't want to do these loans right now, or they price them like crazy - $10,000 in points and closing costs.

Any suggestions on other lenders?

Thanks,

Scott

Scott, non-banks lenders would be open to doing a cash-out refinance but rates/fees will be around 5.99% - 7.5% for a 30 y fixed rate and 2.0% origination fee.

Originally posted by @Andrew Green :

Hello Scott,

Any luck?  

I ran into the same issues recently trying to extract some equity from a rental SFH I've owned for 10 years. I had two offers for 3.5%, 30 year conventional, 50% LTV, no points (the usual fees and taxes, of course). The next day it was a rollercoaster of additional points, then a glimmer of hope and then silence. Literally, calls not returned. One of the brokers did a loan for me a few years ago and the other was recommended by a colleague. I'll widen my search and I can wait, but I'm wondering what's going on.

Is it just that the market trying to digest the huge volume of refinance activity of late and it will return to normal, or is this expected to persist for some time?    

I think that's going to be the case for the foreseeable future. Significant volume of refinance activity + COVID uncertainty.