Updated about 4 years ago on . Most recent reply
Cash out refinance on SFH
Hey everyone,
As of April 1st it seems bank have seriously slowed down on giving residential loans on cash out refinances of investment properties. Are you finding that the next best option is a commercial cash out refinance? It seems odd to need to do that on a SFH in my name.
Thanks in advance!
John
Most Popular Reply
@John Mazzella I'm seeing that banks are losing ground in the residential investment real estate lending market. They're getting displaced out of this space by the debt service coverage ratio (DSCR) lenders. Those loans were designed for real estate investors building their rental portfolios. None of the bank tax return proctological, properties can be owned in LLCs, 30yr fixed rate & term, cash out up to 75% LTV, rates in the 4s, close in 30 days not 90. It's just a better product than the banks. I don't think they're even trying to compete anymore. My company does these loans - Dominion Financial.