Possible to Refinance Three Single Family Homes at Once?

Question

Hi All,

I just bought three properties from a couple going through a divorce, through seller financing, and thinking about my options going forward. I was thinking of refinancing to pull my money out plus some extra (hopefully). I'm wondering if people have had experience refinancing multiple single family homes at once. I've called a couple places but no luck... yet. I don't know if this is possible or if it would even save me time but curious if anyone had experience in this realm.

Thanks, Jack

Sasha Mohammed · Answer

@Jacob Allweil, if you have the ability to qualify with income through traditional financing methods, this will be your best option as far as cost is concerned. typically traditional mortgages have the fees paid with lender credits, meaning you often don't have to pay much out of pocket (usually just the appraisal). Of course, it all depends on how the deal is structured with your Loan Officer, but it gives you better rates and typically less fees. Time, on the other hand, is a different story. Lots of paperwork for traditional financing, and a ton of scrutiny by underwriters as they pick through your financials.

if you're looking for loan options which are quicker and less cumbersome to obtain, commercial lending is the way to go. although it's a trade-off between cost and time. typically commercial will offer higher rates, higher fees, and odd-ball terms like prepayment penalties and sometimes balloon payments (so be aware as you shop). But commercial is an excellent option for investors who write off all their income or simply don't want to waste the time duking it out with an underwriter.

I suggest you reach out to a broker who is comfortable not only with traditional mortgages but also commercial. They could look at your paperwork and determine the best route for you and your situation specifically.

Jacob Allweil · Answer

@Marc Simpson and Account Closed, thanks for the inputs.

Melvin List · Answer

@Jacob Allweil I don't think the process of going conventional will be a pain as other posters have said. If you can qualify conventional you just need an experienced loan officer that can package all 3 loan and get them to the same underwriter. You will have to do 3 separate applications for each property but one underwriter will simplify the process.

Rod Stanback · Answer

Hi Jacob,

So you basically have three options to refinance as everyone has mentioned:

1. Traditional

2. Individual

3. Portfolio

Yes, traditional would be the cheapest, but not the easiest. This method will also negatively affect your debt to income ratio if you're planning on buying a personal home, car or etc...

If you would rather not go traditional, refinancing the properties individually may be your only option, depending on the combined value. Most portfolio loans have a minimum of 5 properties or minimum loan amount of $500K.

Let me know if you have additional questions!

Stephanie P. · Answer

@Jacob Allweil

Stay away from a blanket loan for just three properties. If you ever needed to sell one, you will not be able to because the valuation of the pool will be greatly reduced.

Your personal situation will be the driving force between going conventional or commercial. If you qualify to go conventional, go that route; it's cheaper (not necessarily easier). If you don't qualify for any reason, then go commercial. No income verification so it takes away most of the reasons people don't qualify.

Best of luck

Stephanie

Jacob Allweil · Answer

I thought it may be easier to put them into one loan but not sure the pros and cons. In my mind I thought I could just save some time, and maybe money. Am I even correct in thinking that it would save time by doing them all at once? I was trying to do the refinance with all three included because I bought all three as a package and thought it would get messy if I did them individually.

Marc Simpson · Answer

Hey Jacob, it's possible. Are you trying to blanket them into one loan or perform separate refi transactions? Individual market values would be a factor either way.

Possible to Refinance Three Single Family Homes at Once?

Possible to Refinance Three Single Family Homes at Once?

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