Rental Property Refinance in Indianapolis

10 Replies

Hi All,

I Recently did my first flip and am on tight timeline to sell it due to a GC taking their sweet time. Basically I need to cash out within the next 3 months to repay my lender. I am looking at the possibility of putting a tenant in place and throwing a fixed 30 year mortgage on it and pulling out some cash after the refinance.

Ive had title in my name for 6 months now and my issue is not having a tenant in place long enough to properly season the property. I am looking for any type of lender in Indianapolis that would be able to help me out. Anything Helps

@Matthew Dunaway the problem you're going to run in to with a conventional lender is that you've missed your window to qualify for the Fannie Mae Delayed Financing program. You have 6 months to refinance and after that, you need to wait 12 months. It doesn't have anything to do with how long the tenant has been in place. I would talk to some non conventional lenders that can finance it for 12 months and at that point, convert to conventional 30 year financing.

@Mike D'Arrigo thanks for the heads up! It was a longshot for a conventional lender I was just hoping someone has or had managed it at some point. I am shopping some non-conventional lenders currently. Interests rates are a little rough unfortunately.

@Matthew Dunaway not sure what LTV you are going for on the refi but have you looked at LendingOne? They do as low as a 3 year ARM which would give you some time to figure out a more long term loan. They also do long term lending as well if you like their rates.

@Matthew Dunaway let me know how it goes - I used their automated application and it gave me a pretty low LTV (like 65%), but if you've talked with an associate and they go higher, please let me know bc I have a situation very similar to yours in Indy as well! I've refi-d with LimaOne before -- they get a bad wrap sometimes but the experience was pretty decent for me and the rates not bad, and they gave me 75% cash out on a 5 year ARM...had a pretty steep pre-payment penalty though that lessened each year.

@Dave Blackman here is the info I got from lending one. The shorter the ARM the better the rate. I believe we were hovering in the high 4's or mid 5's for percentage rate. This may just foot the bill for what I need. 3 weeks from start to finish is what they want with no seasoning.

here is the terms I got from the guy. My credit score is 800+ so I got a really low origination fee. It can go pretty high from what it seems with worst credit.

"For a refi we can typically go as high as 75% LTV, and again we can offer you a 30-yr fixed or ARM at 5-7-10 years. To reiterate, because of your great credit score we could offer you our best origination fee at only 1.49%. Lastly, closing costs would only consist of that origination, plus $995 legal and processing, plus any third party fees (taxes title ins). "

Not a bad gig I suppose.

@Mike D'Arrigo do you have any property management companies you would highly recommend for my rental. I got a crazy offer from a company Called ALE solutions that basically headhunts for properties for families that need to be relocated due to a disaster. In this case it was a fire. Theyre offering me above what I listed the property for plus some additional funds with the stipulation that its 6 months which isn't an issue but I need a PM since I'm out of state and might need them to be pretty quick and reliable.

Has anyone has any experience with a company that finds individuals rentals for that situation I talked about above. its very enticing to me.

@Matthew Dunaway very interesting - those numbers certainly beat Visio Lending which is who I was looking at.  Will get in back in touch with them - I'm not quite as high as you credit score wise but am high 700's.

Have a good prop mgr for you in Indy, shoot me a PM and I'll send you his info.

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