Lenders/Banks/Credit Unions with no Seasoning Period?
Hello! I am rehabbing a home in TN and am looking for a lender with no seasoning period. Would like to start the cash out refinance process around month two of owning the home. Any you have used that will do 75% LTV on an STR?
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Quote from @Lisa Beard:Hi Lisa,
Hello! I am rehabbing a home in TN and am looking for a lender with no seasoning period. Would like to start the cash out refinance process around month two of owning the home. Any you have used that will do 75% LTV on an STR?
There are a few lenders that do not have seasoning requirements. Rate is pretty high though if you are looking for a 30 year fixed option.
@Erik Estrada Thank you! I was actually looking into an ARM at the moment. Any idea which lenders may lend in TN?
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Quote from @Lisa Beard:
@Erik Estrada Thank you! I was actually looking into an ARM at the moment. Any idea which lenders may lend in TN?
I know a few lenders that can finance STRs. I haven't seen an ARM for it though.
@Erik Estrada How about the STR lenders? I am open to a 30 year.
I appreciate the help :)
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Quote from @Lisa Beard:
@Erik Estrada How about the STR lenders? I am open to a 30 year.
I appreciate the help :)
Yes! Just PM'd
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Doesn't exist
I work with ARM lenders that will go to 70LTV and FRM lenders that are still going to 75LTV on STRs. Seasoning periods vary, but normally 3-6 months is typical. Interestingly enough, the ARM lender is in the upper 8's and the FRM lender is in the upper 7's, depending on credit, experience, and loan amount, of course. I am not aware of any true STR lenders that have no seasoning period currently, but that doesn't mean they aren't out there.
Cheers!
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@Lisa Beard you've got some good responses above but I just wanted to confirm a couple of things:
1. There are LOTS of lenders that have no seasoning. Lots and lots. Lean on other real estate investors in the area of the property to find out which ones are good.
2. Having a STR will complicate the transaction. If it was a long term rental it's very prominent...but the STR piece will limit your options.
3. Always recommend getting "prequalified" beforehand so you know your terms before you execute on a property. It's not required...but certainly recommended.
Thanks!
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@Andrew Postell Thank you! Yes, I have found a few lenders who say they can do it as an LTR with a signed lease. On one hand, I understand there is security in a long term lease, but STR's are so much more profitable, so on the other hand, it's funny lenders don't want to see the additional cash flow/reservations.
I appreciate the response!
@Nick Belsky thank you! I have been contacted by a few folks who can do it with no seasoning period, but I am definitely still comparing rates. Do any of your lenders have no seasoning period?
Most certainly. I have lenders who will do cash outs on newly appraised LTVs with no seasoning or with 3 months. For STRs, that becomes much more limited.
Cheers!
Quote from @Lisa Beard:
Hello! I am rehabbing a home in TN and am looking for a lender with no seasoning period. Would like to start the cash out refinance process around month two of owning the home. Any you have used that will do 75% LTV on an STR?
My lender offered delayed financing with no seasoning period for our last refinance in TN. I will send you a contact!