New to Real Estate · New England · Member since 2021 · 58 posts · 8 votes
I have 2 homes where my money is buried alive. I am trying to refi to free up money so that I can purchase a new home but the banks say that they will not refi my loan. Is there other ways to using equity to get a loan?
You could always look into commercial lenders that will lend up to 80/20 LTV. I have thought about going this route with the BRRRR I am actively doing, but there is a catch. The catch is that the rates are higher, and there are typically balloon payments at the end of the loan.
I'm curious, why are the banks telling you that you can not REFI? From what I am seeing, a cash-out REFI is 75/25 LTV. If you do not have equity built into your home, you can not pull it out.
You could always look into commercial lenders that will lend up to 80/20 LTV. I have thought about going this route with the BRRRR I am actively doing, but there is a catch. The catch is that the rates are higher, and there are typically balloon payments at the end of the loan.
I'm curious, why are the banks telling you that you can not REFI? From what I am seeing, a cash-out REFI is 75/25 LTV. If you do not have equity built into your home, you can not pull it out.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
4y
Buried alive. Halloween is right around the corner. Maybe at Midnight on Halloween look in a mirror and say equity 3 times? Works for bloody mary and beetlejuice so who knows?
I think if you tell us why the banks said you can't refi that would really help you get better answers/workarounds
New to Real Estate · New England · Member since 2021 · 58 posts · 8 votes
4y
@ Joshua & Scott, Thanks for the response. What I am being told was that my score is too low: I can't recall what it is but it is 620-650 range and they are looking at 700 or above. Also they're saying too many inquires about opening accounts and debt to income is too high.
Regarding the 75/25 LTV they're saying that they use the assessed value by the town which is considerable lower than what it would apprise for. When I asked if i get it appraised can they use the appraisal which would be quite higher (I have 80k equity in one home & 125k in another) the response was that i have to pay them $600 for the appraisal, they will send 1 of 3 appraisers to do the job and even if it does apprise where i think it will, that my credit score is below their requirements and they won't loan me the $. SO why would i bother if it all comes down to my credit score?
Looks like you need some work on your credit. Some lenders, like mine, will help you fix your credit as just part of their service. Otherwise, you will need to hire somebody or some company or research it yourself.
Yes, the credit bureaus dont look kindly on somebody constantly asking for credit. If you get consolidate your requests into a ~2 week period (some say as as as 4 weeks) it will be counted as 1 request. Honestly, any "good" lender will know that and ask before asking to pull your credit.
Your dti is certainly another issue. Lets face it --- you can't just get a loan willy-nilly. You have to have show the income to actually support the loan that you want. This could be a sticking point. Basically, you need to get your existing loans paid down/off and/or increase your income. To get a conforming loan there isn't much around this. Otherwise, you need to get commercial loans, basically a non-residential loan which comes in many different names, such as a "portfolio loan." Either way, you need to find a commercial lender offering you a product that suits your requirements. However, just remember that their rates and terms aren't nearly as good as a conforming loan --- there is no "free lunch."
Yup, getting an appraisal is standard... Again, they need documentation / supporting evidence. Sorry, but your "word" or "Zillow" isn't good enough.
Some members just use their last initial for privacy/security reasons. You can have BP turn it on.
New to Real Estate · New England · Member since 2021 · 58 posts · 8 votes
4y
Thanks David.
How do I go about having BP "turn it on." Not sure what that means.
My DTI is borderline. Ive tried fixing the credit directly with 2 companies but got no where. I have a 30 & 60 day late payment in 2020 on the reports. Everything else has been paid on time. I also tried for a line of credit but was told that my score is just a few points under what they require. I'll look into the commercial loan. Was not aware they existed.
My lender's firm doesn't originate in NY, unfortunately. If you still could use the referral, please send pm since BP rules don't allow posting in general board.