Rental Property Investor · Philadelphia, PA · Member since 2016 · 53 posts · 10 votes
Hey BP, I’m going to use the BRRRR method to buy a multi family property. I’m using 20K cash and hard money. When I go to refi the property after I rehab and rent it, what are the requirements that I need to have refi the property? Are there the same requirements as if I’m getting s traditional mortgage? Do I need to have a certain credit score or income? Please help and thanks in advance!
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
8y
talk to a lender about the underwriting before you buy the house. so you know what to expect the whole way along.
if you use a fannie loan, it'll be 75% ARV
yes you'll need a good credit score, exact requirements will vary by lender.
all banks are different, you can't get a specific answer to a general question. you must ask the lender you're going to use what their process and requirements looks like.
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
8y
talk to a lender about the underwriting before you buy the house. so you know what to expect the whole way along.
if you use a fannie loan, it'll be 75% ARV
yes you'll need a good credit score, exact requirements will vary by lender.
all banks are different, you can't get a specific answer to a general question. you must ask the lender you're going to use what their process and requirements looks like.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
It depends on the bank, but they will want to see that it is rehabbed and rented, that you have good credit and meet their DSCR ratio (at least 1.2). Some will require the property has seasoned (owned for at least a certain period of time, varies by the bank) before they will loan on appraised value versus what you have into it.
Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
8y
@Abdul King You can refinance as rate and term any time. If you want to cash out because there is lien on the property you have to wait for 6 month. The process will be same as regular refinance or cash out. If you own any property you can get 75%rental income otherwise the lender will hit your DTI with full payment. 620 is minimum FICO requirement for conventional loan. Yes conventional lender do look at the income.