Investor · Tallmadge, OH · Member since 2014 · 81 posts · 32 votes
Hi Guys,
Looking for some recommendations here.
I'm a newer investor (2 properties this year), and have a free and clear rental property I recently rehabbed and rented, with new tenants (2 months ago). My initial plan was to do a cash out refi @ 180 days (Aug). However, I've recently parted ways with my employer, so my current lender says I have to wait until I am working again and also have 2 months of paystubs to prove it.
Are there some recommendations on where I could refi based on rental income, or my wife's income? The house is in my name only, but I am married, and my wife has great income and no debt to her name. Any chance she can pull the loan? Since I've only been doing this a year, the bank is saying my rental income is irrelevant. I'm looking to pull 40-45k, and it rents for $750/mo, which more than covers a 30yr note including Taxes & ins....
Your wife could go on the loan and title. She would have to qualify with both of your debts. You don't need a 2 year history to cash out. You could use 75% of lease agreements, if the properties are not reflected on your tax returns.
Investor · Tallmadge, OH · Member since 2014 · 81 posts · 32 votes
10y
@Jerry Padilla
Thanks! Is there a cost to adding her to the title and can it be done during refi? she would pass any financing "tests" and has the cash flow to pay our current obligations.
I just purchased the property February 11, so it is not on my tax return yet. I'm also not familiar with "75% of lease agreements", you refer to, can you elaborate?
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
10y
Wife could definitely do the loan then. You can quit claim it over to her as part of the closing. I did it on one of my 5-10 program loans so it works with conventional lender. And, yes, I believe they should use the 75% of lease agreements. But that may be an overlay where some banks may choose not to use that at all. Its been several years since the 2 year landlord thing came into play and the rules have changed so much, I wouldn't begin to know if thats correct. :-)