Doing a DSCR refinance to avoid down payment

[Ladeg Mulb]

Hello biggerpockets

I'm looking at buying a home through seller financing, and the seller doesn't want to hold the note for too long. My question is as follows: can I do a DSCR refi in a couple years and take out a loan that amounts to 80% of the home's appraisal?

I know that a DSCR loan to purchase a home has a 20% down payment required. So I'm wondering if the same applies to refinancing, or is this a way to bypass a down payment.

Also, does anyone have any other ideas on how to get creative with a down payment?

I’d appreciate any insight, thanks in advance!

[Katherine Blazer]

Are you buying the property below market value currently? If yes how much below. You can rate and term refinances in most cases without any seasoning. They will make you out at 75%-80% LTV depending on the lender. If not, then you will need to wait until you have paid it down.

If you want to pull cash out of the property you will need to season the property for 6 months to a year and will max out at 75%LTV