About new refi contract?

Question

When you refi in brrrr do you initiate an entire new loan qualification process on yourself as well as the property or is the it just the value of the property?

If i change jobs without my current in come is there the chance of being turned down on refi?

Eric Goldman · Answer

so  when you brrrr typically you get private money or a bridge loan for the purchase and rehab. then when work is done and home is rented, you go to refi, which is a different loan. really matters what type of loan you are looking for our qualify for... its a good idea to work the out before you start.

Stephanie P. · Answer

If you change jobs, you may or may not be turned down for conventional financing.  If your new job is in the same line of work and it's a W2 job then maybe not, but if you're going from a W2 job to self employed or 1099, then more than likely you will.  Try conventional first because the rates are definitely better, but if that doesn't work, go with a DSCR loan.  That will work if your credit is good, the property isn't rural and if it cash flows.

All the best

Stephanie

Brittany Minocchi · Answer

If you're refinancing with a conventional loan, it'll be like applying for a loan all over again. Income, employment, bank statements - all that stuff will be needed. If you refinance into something like a DSCR loan, your income/employment/DTI are not considered. Instead, we use the income of the property to qualify you, along with factors like FICO, down payment, level of experience and reserves. There are different requirements with different lenders.

David Kelly · Answer

Yes, there is a chance of being turned down based on the new jobs income.  It is like going thru the approval process again when you do a refinance.  VA loans have a different route on this however, no income docs are needed on an IRRRL.

Matt Cartwright · Answer

Depends what type of financing you use - conv. vs. hard money. In general however you will be applying for a new loan and qualifications would be reviewed again to determine eligibility.

For DSCR loans we just qualify the individual based off the cash flow of the property and do not look at any income however conventional will likely review income/employment for the refinance.

If you have an offer letter from a new employer there is a chance they could use that to qualify especially if you are rolling from a W2 to another W2 job.