Real Estate Agent · Atlanta, GA · Member since 2014 · 66 posts · 8 votes
Good evening,
For those that might be using the BRRRR method, what financial institution are using to do your cash-out refi (preferably Atlanta)?
We have a property we purchased in June using a hard money lender. Most lenders are telling me I have to own the property at least 6 months before I can refi (January).
I am looking for that lender that can refi inside that 6 month period and can do a LTV of 80%. Who do you have?
It is a 6 month wait when you use financing to purchase the property initially, to cash out.
You can refinance a property without any seasoning requirements.
Freddie Mac allows a refinance of a SFR at 80% LTV without cash out. Cash out is a 75% LTV for a SFR. For a MFR there is a 75% LTV requirement on an investment property for a refinance and a 70% LTV on a cash out.
Hey @David Taylor. My brokerage works with Sherman Bridge lending and they always seem to help our investors with what they are looking for. Always hear good feedback about them so you might want to check them out for your next purchase using hard money.
You're mixing up conventional guidelines with portfolio requests. Conventional guidelines allows for cash out after 6 months of ownership using the appraised value. There are some conventional lenders that put overlays on their loans and require 12 month's seasoning.
There are portfolio lenders that are much more lenient on title seasoning, but generally you'll be capped at 75% loan to value with 0-3 month's title seasoning. The rates and fees are higher, but they close. Rates on portfolio loans go between 5.75% and 7.99 (depends on the lender and guarantor's credit) and each cost 2-3 points to get. These loans don't require income verification, but do require the property to be leased.
It is a 6 month wait when you use financing to purchase the property initially, to cash out.
You can refinance a property without any seasoning requirements.
Freddie Mac allows a refinance of a SFR at 80% LTV without cash out. Cash out is a 75% LTV for a SFR. For a MFR there is a 75% LTV requirement on an investment property for a refinance and a 70% LTV on a cash out.