CASH-OUT RE-FI at 80% LTV or better.

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CASH-OUT RE-FI at 80% LTV or better.

Gavin Wright
Rental Property Investor · Bluffton, SC · Member since 2019 · 10 posts · 1 vote

Hello all,

I am looking to cash-out Re-fi several newly renovated SFH rentals in the Hinesville ,GA area.

I understand that typically investment properties have a threshold of 75% LTV in a CASH-OUT scenario, but I figured it couldn't hurt to ask if any of you fine people know of anyone that could push it a little closer to 80%.

Thank you!

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Matthew Kwan
Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
2y

Yes there are products that can up to 80% LTV for DSCR with 6 months reserves. Typically rates are 0.5%-1% higher than the full conventional loan, however the beauty is that it requires less documents and quicker close. @Albert Bui @Carlos Valencia

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  • Shaunta M.
    Real Estate Investor · Marietta, GA · Member since 2016 · 83 posts · 5 votes
    2y

    Can check options for you.  Just send email to connect better and get more info on properties.  

    0Reply
  • Brandon Croucier
    Lender · Lake Havasu City, AZ · Member since 2024 · 700 posts · 285 votes
    2y

    The product is out there, the rate is 2% higher typically. I strongly do not recommend it. Property also has to be able to debt service using that pricing.

    0Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 498 posts · 131 votes
    2y
    Quote from @Gavin Wright:

    Hello all,

    I am looking to cash-out Re-fi several newly renovated SFH rentals in the Hinesville ,GA area.

    I understand that typically investment properties have a threshold of 75% LTV in a CASH-OUT scenario, but I figured it couldn't hurt to ask if any of you fine people know of anyone that could push it a little closer to 80%.

    Thank you!


     Hi Gavin,
    We can sometimes go up to 80% on DSCR loans if the numbers work. However, the rate adjustment is quite hefty in return compared to 75%.

    0Reply
  • Ali Balapour
    Investor · Florence, KY · Member since 2022 · 10 posts · 2 votes
    2y

    Hi all,

    I also have a duplex that I like to refi at 80% in Covington Ky. I was working with someone who made promises and then put a very different term sheet in front of me a week before closing so I am back on market shopping around.

    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Gavin Wright:

    Hello all,

    I am looking to cash-out Re-fi several newly renovated SFH rentals in the Hinesville ,GA area.

    I understand that typically investment properties have a threshold of 75% LTV in a CASH-OUT scenario, but I figured it couldn't hurt to ask if any of you fine people know of anyone that could push it a little closer to 80%.

    Thank you!


     Two issues you are going to have here. 1) is the seasoning requirement (the waiting period) most program have for when you can use the new value (improved value) to pull cash out. The conventional waiting period for example 12 months. 2) is  what you mention above in that most programs (including conventional) max out at 75% loan to value after you have passed the program required seasoning period for cash out. 

    They way we get around this issue is our 2 step program. The way that works is we underwrite a bridge loan ,lending our own money, so we decide the requirements. We do not have a seasoning period assuming a strong appraisal and allow a cash out up to 80% loan to value. So, with that bridge loan you get your cash out. Then immediately we refi you into a conventional or DSCR loan as a rate/term refi (meaning a refi with no cash out) because most program do NOT have a seasoning period for rate/term refi AND most programs will allow for a rate/term refi up to 80% loan to value.

    So, you get your cash AND refi into a 30 year fixed with lower rates on your permanent loan  then if you did a cash out because rate/term refi's have lower rates then cash out loans. 

    Hurst Real Estate, INC4.992 Reviews
    WebsiteView Page
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  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    2y

    Doable, but expect to need 6+ months of reserves, 720+ FICO and a rate in the mid 7s-8% range. 

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC520 Reviews
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    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    2y
    Quote from @Ali Balapour:

    Hi all,

    I also have a duplex that I like to refi at 80% in Covington Ky. I was working with someone who made promises and then put a very different term sheet in front of me a week before closing so I am back on market shopping around.


     Figured I'd copy and paste my response to OP for you...

    Doable, but expect to need 6+ months of reserves, 720+ FICO and a rate in the mid 7s-8% range.

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC520 Reviews
    View Page
    0Reply
  • Logan Singleton
    Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
    2y

    Hi, David, 80% Cash-Out is doable as long as the property can afford that amount of debt at a 1x debt service. Please note the rate is adjusted to reflect the increased leverage.

    0Reply
  • Matthew Kwan
    Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
    2y

    Yes there are products that can up to 80% LTV for DSCR with 6 months reserves. Typically rates are 0.5%-1% higher than the full conventional loan, however the beauty is that it requires less documents and quicker close. @Albert Bui @Carlos Valencia

    2Reply
  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    2y

    @Gavin Wright @Ali Balapour - I'm in the ATL.  Working on one 80% c/o Refi, the dscr numbers work, but the rate is 8.25% on a 30 year fixed.

    0Reply
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