Refi on investment property

[Howard VanBuren]

Looking for a good company to refinance one of my investment properties in the Philly area. This will be my first time doing a refi as a new investor. Any companies or suggestions are welcome. Thanks in advance.

[Jack Mawer]

Are you clear on what type of financing you are looking to obtain? If you are looking to refinance a rental property and want a simple process, I would highly recommend using a DSCR (Debt Service Coverage Ratio) loan. This will solely look at your FICO score as well as the property cash flow (asset-based lending) and allow you to scale your portfolio as your DTI will not take a hit.

[Andrew Postell]

@Howard VanBuren thanks for posting. You're on the right track here. We need some good local people to weigh in here on who's a good lender in your area.

Here's my 3 suggestions:

1. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Networking is always a great practice and you never know who you might meet there and what good information they have to share. Would certainly recommend visiting if one is close to you.
2. You can also visit real estate investing groups virtually.  Facebook is a good example of this.  If you search "Philadelphia Real Estate Investor" or something to that effect there will be several pages that come up with THOUSANDS of members.  Join a few and get plugged in.
3. Calling - and then there's this option. Which is what I have had to do many times...it stinks. Try to other two first.

Hope this helps!

[Rob Lawrence]

Are you needing a commercial loan or one in your personal name?

[Jonathan Taylor]

@Howard VanBuren DSCR loan ( as @Jack Mawer mentioned) would great option if you do not have enough verifiable personal income. Basically, these loans use the rents you receive on the property and divide them by the new loan PITI to receive a ratio. Simple math would be a PITI of 1,000 and rents of 1,500. That would be a debt service cover ratio of 1.5. Basically, this property cash flows. FICO, experience, and LTV are also factors but this is the basis of the loan. No need for tax returns, Verification of Employment, or income. I have been through this loan as an investor myself and originate these loans all the time.

DM with questions as Im happy to help.

[Stephanie P.]

Quote from @Howard VanBuren:

Looking for a good company to refinance one of my investment properties in the Philly area. This will be my first time doing a refi as a new investor. Any companies or suggestions are welcome. Thanks in advance.

If you can go with conventional financing meaning you can qualify using a fully documented loan, that's the best way to go because it's least expensive. The next option would be a DSCR loan. It's based on the borrower's credit and the property's income and that's it. They're more expensive, but much easier to qualify. Go conventional if you can and if not, go DSCR.

Stephanie