2023 Recap: Fannie Mae Cash-Out Cutbacks – What BRRRR Method Investors Need to Know!

[Robin Simon]

https://www.easystreetcap.com/brrrr-method/
Effective April 1, 2023, Fannie Mae Announcement SEL-2023-01 is in effect – an update to rules for "conventional financing" of real estate. The most notable change for investors is the new eligibility requirements put in place for cash-out refinances. BRRRR Method investors are greatly impacted by this change. Bottom line, cashing out quickly with conventional financing just became a lot harder. But don't panic – private lender options remain as reliable as ever for quick and easy finances to keep your BRRRR strategy projects right on track!

Easy Street Capital's DSCR lending program, EasyRent, is one of the best DSCR lending programs available to real estate investors, known for low rates, quick and reliable service and flexibility. But for BRRRR method investors, EasyRent goes above and beyond. Our industry-leading options are specifically designed to maximize success with the BRRRR Strategy.

✅Seasoning: Most DSCR lenders will offer cash-out refinances at six months seasoning. @easystreetcap , however, takes it a step further and allows cash-out refinances in as little as three months! And yes, that includes 100% of your investment returned and up to 70% loan-to-value (this bumps to 75% at six months or more!)

✅Minimum Loan Amount: A lot of real estate investors can be left frustrated with declines from DSCR lenders unwilling to lend to them because of high minimum loan amounts such as $100,000 or more! These lenders often don’t want to make these loans because they make less money and don’t want to deal with the hassle. Easy Street Capital puts BRRRR borrowers first – and will do loans down to $75,000 – valuing long-term relationships and newer investors just getting started on their journey.

✅No Lease Required – “#airbnbrrrr Friendly!": Pretty much all DSCR lenders will require a long-term 12-month lease to do a refinance – the "rent" R in BRRRR. @easystreetcap will do a DSCR refinance loan with no lease required. Renting as an STR or MTR is A-OK!

Full Article: https://www.easystreetcap.com/fannie-mae-new-cash-out-cutbac...

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