Santa Clarita, CA · Member since 2012 · 53 posts · 11 votes
I have a client that is seeking a 2nd lien on his rental property so he can purchase additional RE. He is taking the hard money approach because he has a SS on his credit 1.5 years ago which takes him out of conventional Refi's.
Any Hard Money lenders out there that will do 2nds? to 70-75% LTV?
Any Private money or Portfolio lenders that will underwrite a cash out refi to 75% LTV with a SS?
Property: Value $210K / Existing 1st $100K / Seeking $50K cash out
Cash flowing rental with $1750 direct deposited from housing authority....
Any suggestions or recommendations would be appreciated, Thanks!
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
10y
@Tyler H. I can do a portfolio loan with a settled SS. Since he is 1.5 yrs out, we are good on that. The Max LVT for a cash-out he will get is 65%. 70% after 24 month SS seasoning.
Please have your client contact me.
Upen Patel Mortgage Banker, National Lender web: loansbyupenpatel.us The Federal Savings Bank cell: (571) 331-5161 email: [email protected] Federal NMLS# 1374243
Lender · Tampa, FL · Member since 2014 · 206 posts · 4 votes
10y
Tyler I can help eith this loan. From your information you are looking to refi a property with value of $210k and you are requesting $50 cash our correct?
That would look like this:
$210,000 * 65% = $136,500 - 100000 currently owed = $36, 500 cash less $5,000 in fees would be about $36,000 cash to you.
Lender · San Antonio, TX · Member since 2016 · 22 posts · 10 votes
10y
When I get these kind of deals my first reaction is to coach them to get the SS off their record. It will continue to haunt him. Buyer Beware of most Credit Repair Agencies...but, if you go to a reputable legal firm which specializes in this type of repair, it can be done.
Help him fix the root cause, first, and then you can do a lot more business with him!
Suggestion: Ask legal firm if they can put the money they ask for to repair credit in an Escrow account until the SS is removed from all bureaus.