Skip to content
Classifieds

User Stats

17
Posts
2
Votes
Emilio Pereira
2
Votes |
17
Posts

80% cash out refi in Florida?

Emilio Pereira
Posted Nov 1 2022, 14:11

I have been on a hunt for a lender who lends at 80% cash out refi for an investment rental property in Florida. If anyone could point me in the right direction that would be great! Thank you! 

User Stats

1,311
Posts
836
Votes
Matthew Crivelli
Lender
  • Lender
  • Massachusetts
836
Votes |
1,311
Posts
Matthew Crivelli
Lender
  • Lender
  • Massachusetts
Replied Nov 1 2022, 14:15

@Emilio Pereira

Leverage on most investment products was just slashed this week. Multiple large lenders are now maxing out at 70% LTV for a cash-out refi. The ONLY 80% cash-out product I've seen is a 5Y balloon, which in my opinion is not a great product for stabilized rentals.  

User Stats

338
Posts
169
Votes
Katherine Blazer
  • Lender
  • Tampa/St. Petersburg/Sarasota FL and Knoxville/Sevierville/Maryville, TN
169
Votes |
338
Posts
Katherine Blazer
  • Lender
  • Tampa/St. Petersburg/Sarasota FL and Knoxville/Sevierville/Maryville, TN
Replied Nov 1 2022, 15:13

I work with a few lenders that are still at 75%, but as Matt said, most are at 70%, and rates are higher on the 75%. @Emilio Pereira

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

2,746
Posts
822
Votes
Erik Estrada
Lender
#3 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
822
Votes |
2,746
Posts
Erik Estrada
Lender
#3 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
Replied Nov 2 2022, 12:44
Quote from @Emilio Pereira:

I have been on a hunt for a lender who lends at 80% cash out refi for an investment rental property in Florida. If anyone could point me in the right direction that would be great! Thank you! 

What are you looking to do with the cash? If your goal is to buy another investment property, Instead of refinancing your entire loan, you can do a second position hard money loan and combine it with a first position for a purchase. 

Now if you are looking to hold the cash for more than 2 years, this won't work out. But even then, the cost of holding that cash will be nuts. Pair that with a 5 year prepayment penalty on a DSCR loan and it will hurt.

Fuente Funding Inc.  Logo

User Stats

2,746
Posts
822
Votes
Erik Estrada
Lender
#3 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
822
Votes |
2,746
Posts
Erik Estrada
Lender
#3 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
Replied Nov 2 2022, 12:45
Quote from @Erik Estrada:
Quote from @Emilio Pereira:

I have been on a hunt for a lender who lends at 80% cash out refi for an investment rental property in Florida. If anyone could point me in the right direction that would be great! Thank you! 

What are you looking to do with the cash? If your goal is to buy another investment property, Instead of refinancing your entire loan, you can do a second position hard money loan and combine it with a first position for a purchase. 

Now if you are looking to hold the cash for more than 2 years, this won't work out. But even then, the cost of holding that cash will be nuts. Pair that with a 5 year prepayment penalty on a DSCR loan and it will hurt.


 Now if you are looking to pay off some high interest business debt then it could make sense.. There is a lot missing to this puzzle. 

Fuente Funding Inc.  Logo

User Stats

331
Posts
206
Votes
Lyndsay Zwirlein
  • Lender
206
Votes |
331
Posts
Lyndsay Zwirlein
  • Lender
Replied Nov 2 2022, 13:50
Quote from @Emilio Pereira:

I have been on a hunt for a lender who lends at 80% cash out refi for an investment rental property in Florida. If anyone could point me in the right direction that would be great! Thank you! 


Also how long have you owned the property? If you've owned it greater than 6 months, I have 2 lenders who will do 80% LTV. Let me know if you need more info!

User Stats

2,500
Posts
862
Votes
Dave Skow
  • Lender
  • Seattle, WA
862
Votes |
2,500
Posts
Dave Skow
  • Lender
  • Seattle, WA
Replied Nov 3 2022, 16:07

@Emilio Pereira you arent likely to find this and  if you are  it  will be very  expensive

User Stats

952
Posts
256
Votes
Jared Rine
Lender
  • Lender
  • Sacramento, CA
256
Votes |
952
Posts
Jared Rine
Lender
  • Lender
  • Sacramento, CA
Replied Nov 4 2022, 17:46

@Emilio Pereira ..it exists out there, but as other posters have mentioned - few and far between and will be expensive.  Most lenders already have been at decreased cash out leverage to 75 or even 70%, respectively.  But 80% is out there. 

  • Lender California (#01915324) and California (#893462)

United Lending Partners Logo

User Stats

1,404
Posts
159
Votes
Simmy Ahluwalia
Pro Member
  • Lender
  • Atlanta, GA
159
Votes |
1,404
Posts
Simmy Ahluwalia
Pro Member
  • Lender
  • Atlanta, GA
Replied Nov 9 2022, 13:14

If you're still looking and the property cash-flows, then yes, we can offer 80%.

User Stats

461
Posts
571
Votes
Jack Tulloch
Pro Member
#2 Mortgage Brokers & Lenders Contributor
  • Lender
  • Austin, TX
571
Votes |
461
Posts
Jack Tulloch
Pro Member
#2 Mortgage Brokers & Lenders Contributor
  • Lender
  • Austin, TX
Replied Nov 14 2022, 15:17

@Emilio Pereira Market standard is 75% max on a cash-out refi, although some offer 80%. That said, at 80% LTV it will likely be very difficult to cashflow the property. Have you considered looking into a HELOC to tap into the equity? That may be a viable option for you.

User Stats

1,250
Posts
1,402
Votes
Salvatore Lentini
Pro Member
  • Rental Property Investor
  • Doylestown, PA
1,402
Votes |
1,250
Posts
Salvatore Lentini
Pro Member
  • Rental Property Investor
  • Doylestown, PA
Replied Nov 14 2022, 15:55

80LTV is off the table for now, especially if it's a cash out refi.  If you need to do the refi within the next few months you're better off doing it now at 75LTV at these rates because even if 80LTV comes back your rate will probably be higher and the market value of your property may have dropped 10%.  Then you'll have waited for nothing.