BRRR Financing Recommendations?

Question

Hello Everyone,

I'm looking to cash-out refi a single family home that is worth about $100K that I have owned since November.  I did the rehab, have a tenant, and would like to get some cash back to do it again.  Who is willing to overlook the 12 month seasoning requirement?

Thanks

Jeff

Stephanie P. · Answer

@jeff roberts

The seasoning requirement from Fannie Mae is only 6 months.  Find a lender that doesn't have overlays.

If you don't qualify for conventional financing for one reason or another, portfolio lender/brokers should be able to help, although your loan amount may be an issue.  Generally, 75K is the minimum although there are a few that will go lower.

Stephanie

Jeff Roberts · Answer

All,

Thanks to the recommendation of a fellow BP investor, I have found a local lender that seems promising- no lower loan limits, 30 year fixed, 75% LTV based on appraisal, 6 month seasoning, and reasonable rates and closing costs.  I am going to pursue that option and will try to remember to revisit this thread with my experience.  Thanks for your input!

Jeff Roberts · Answer

Yes, almost everyone that I have spoken with has quoted the 12 month seasoning time.  I am aware that this is not a FNMA regulation, but knowing this does me little good if the lender has an overlay with a stiffer requirement.  I am frequently told that my my limit would be the price that I paid for the property plus any documentable improvements.    That typically puts me under the minimum loan limits and is not optimaI in any case.  I can, of course, continue to call the savings and loans in the area, and I'm sure that eventually I will find someone; or November will come and the problem will go away.  However, if someone else has a recommendation based on experience, so much the better.

Jeff Roberts · Answer

Shawn Huss with Chemical Bank was the lender that was recommended.  I spoke with him, and then per his instruction applied online on Tuesday night.  It was a fairly painless process.  If you Google his name and company, you will find it pretty quickly.

Kyle Kursim · Answer

Do you mind sharing with us who that lender is? I'm going to be in the same situation shortly.

Thanks in advance!

Jerry Padilla · Answer

@Jeff Roberts

As others have mentioned you can cash out on the property now with conventional. A SFR is an LTV of 75% for an investment property and a MFR is 70% LTV for an investment property. Let me know if you have any questions on cashing out.

Eric Veronica · Answer

@Jeff Roberts as @Stephanie P. mentioned the typical seasoning for a refinance is 6 months from purchase date.  Are lenders telling you there is a 12 month wait.

Jeff Roberts · Answer

The property is in Cincinnati, OH.  No, it is not in an LLC... yet.

Fred Shatzoff · Answer

@Jeff Roberts  Where is the property?  Is title in an LLC?

BRRR Financing Recommendations?

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