No More Cash Out Refinance On Investment Property?

Question

My family’s had 3 rentals for about 15 years. They all now have 70-80% equity in them. My mentors back in the day used to do a cash out refi on an investment property with high equity and purchase more so I just started exploring that option but the mortgage broker I’ve used before just told me you can’t do cash out refi on investment property anymore. Is this accurate? If so, what are other ways to tap into that equity? Heloc or 1031? Thanks!

Timothy Hero · Answer

lol. I'm a mortgage broker and in the past 6 months, 95% of my business has been refi cash-out. I did $1.4M in March and $1.2M of it was refinance cash-outs.

Mark Schumacher · Answer

@Sante R. Thanks for the reply. Yes, it sounds like they are available but maybe just a little harder to get these days. Do you mind me asking what kind of interest rate you’re getting on your cash out refinance? Thanks!

Alex Bekeza · Answer

@Mark Schumacher On to the next Mortgage Broker! Many conventional shops have haulted them or priced themselves out of cash out refis because of new regulations requiring them to keep their investment property volume at 7% or below. On the flip side, commercial cash out refis have never been hotter and rates are closer to conventional than they've ever been. Keep pokin' around!

Sante R. · Answer

Have you tried other Lenders? Not sure about California but I did 2 end of 2020 here in Alabama. Just spoke with my Credit Union yesterday about doing another, faxed in my 1003 this morning to do the same.

No More Cash Out Refinance On Investment Property?

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