Looking for lender that does cash out refi. 90% LTV and favorable terms

Atlanta, Georgia
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Looking for lender that does cash out refi. 90% LTV and favorable terms

Shaqiul Chowdhury
Member since 2020 · 2 posts · 2 votes

Hello all,

I fully renovated a property in Decatur, GA but it has been sitting in the market for a while and I'd much rather keep it for a few years and watch it appreciate further than take a loss as it is a great property in a great part of Decatur. The house will surely continue to appreciate while I either rent out the property or Airbnb it. I currently have a hard money loan on the property and am shopping lenders to cash out refi. Is there any recommendations for lenders that would do a 90% LTV with favorable terms? My credit is still very strong and I would refinance and keep it within an LLC.

Would appreciate any insight or help as it has been a very stressful time and I am looking to move quick on refinancing. Thanks in advance.
 

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Stephanie P.Pro Member
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
3y
Quote from @Shaqiul Chowdhury:

Hello all,

I fully renovated a property in Decatur, GA but it has been sitting in the market for a while and I'd much rather keep it for a few years and watch it appreciate further than take a loss as it is a great property in a great part of Decatur. The house will surely continue to appreciate while I either rent out the property or Airbnb it. I currently have a hard money loan on the property and am shopping lenders to cash out refi. Is there any recommendations for lenders that would do a 90% LTV with favorable terms? My credit is still very strong and I would refinance and keep it within an LLC.

Would appreciate any insight or help as it has been a very stressful time and I am looking to move quick on refinancing. Thanks in advance.
 


90% cash out doesn't exist.  90% with favorable terms really doesn't exist.

Not sure how you got into this situation using hard money (usually they have a tighter lid on the numbers), but regardless, sell the property and try to get out of it before the HML gets a chance to foreclose.

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  • Mark MunsonBusiness Member
    Lender · Orlando, FL · Member since 2022 · 440 posts · 300 votes
    3y

    Hi @Shaqiul Chowdhury

    I don't want to be discouraging, but I've never heard anyone willing to do a cash-out refinance up to 90% LTV. If you can find it, it certainly won't be in the hard money space/DSCR space. I would check with more local banks, as that is probably your best option. Also, the higher the LTV, the less favorable the terms. More than likely, a 90% LTV loan, if it existed, would be at 9%+, if not higher.

    [email protected]407-900-8799
    CapSource LLC4.949 Reviews
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  • Shaqiul Chowdhury
    OP
    Member since 2020 · 2 posts · 2 votes
    3y
    Quote from @Mark Munson:

    Hi @Shaqiul Chowdhury

    I don't want to be discouraging, but I've never heard anyone willing to do a cash-out refinance up to 90% LTV. If you can find it, it certainly won't be in the hard money space/DSCR space. I would check with more local banks, as that is probably your best option. Also, the higher the LTV, the less favorable the terms. More than likely, a 90% LTV loan, if it existed, would be at 9%+, if not higher.


    80-85% LTV is fine too. Just throwing it out there to see if there's any options at 90% LTV which there may be but i also don't want 9%

    0Reply
  • Jack Tulloch
    Lender · Austin, TX · Member since 2022 · 474 posts · 586 votes
    3y

    Hey Shaqiul. 75% LTV is the market standard for cash-out refinances. From a lenders perspective, it is typically too risky to offer someone more than 75% on a cash-out refi. I think there may be some players in the space advertising 80% LTV on cash-outs but would proceed with caution if you find someone offering it. Best of luck.

    1Reply
  • Dominic Pizzi
    Lender · Freehold, NJ · Member since 2022 · 236 posts · 85 votes
    3y

    Hey Shaqiul! 

    Most private lenders are not doing 80% Cash Out Refis anymore. The last big name that I knew that went up to 80% on anything was CIVIC and they are not doing new loans as of last week. 75% is seemingly a good target on a cash out refi for a DSCR loan, assuming credit is good and the property cash flows well.

    4Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y
    Quote from @Shaqiul Chowdhury:

    Hello all,

    I fully renovated a property in Decatur, GA but it has been sitting in the market for a while and I'd much rather keep it for a few years and watch it appreciate further than take a loss as it is a great property in a great part of Decatur. The house will surely continue to appreciate while I either rent out the property or Airbnb it. I currently have a hard money loan on the property and am shopping lenders to cash out refi. Is there any recommendations for lenders that would do a 90% LTV with favorable terms? My credit is still very strong and I would refinance and keep it within an LLC.

    Would appreciate any insight or help as it has been a very stressful time and I am looking to move quick on refinancing. Thanks in advance.
     


    90% cash out doesn't exist.  90% with favorable terms really doesn't exist.

    Not sure how you got into this situation using hard money (usually they have a tighter lid on the numbers), but regardless, sell the property and try to get out of it before the HML gets a chance to foreclose.

    4Reply
  • Michael Kinsella
    Lender · Member since 2018 · 617 posts · 275 votes
    3y

    A 90% cash-out refinance LTV doesn't exist, as others have pointed out.

    Top-of-market LTVs for cash-out refinances (and other financing types more generally) are 80%. Even that would be unusually aggressive right now.

    2Reply
  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    2y

    You can now do a primary residence and cash out to 89.99%.

    C2 Financial
    WebsiteView Page
    1Reply
  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    2y

    Do you need a cash out or just a rate and term refi? If you are currently at say 80% LTV with the HML in place then you could do a rate and term for what are likely to be much more favorable rates than a cash out.

    1Reply
  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Hey Shaqiul - Did you end up moving forward with a refinance? Since it’s been a little while, I’m curious how things played out for you.

    Just wanted to mention, for a cash-out refinance using a DSCR loan, the max leverage is typically around 75% LTV. This is because lenders see cash-out loans as higher risk, especially with investment properties, so they limit the LTV to reduce exposure.

    [email protected]
    1Reply
  • Connor Hibbs
    Lender · Ellington, CT · Member since 2024 · 210 posts · 103 votes
    2y

    Hi Shaqiul,

    Unfortunately, a 90% Cash-Out doesn't really exist in the private lending space. Most lenders cap out at 75% and I know of a few that can go to 80 as long as the scenario checks a few boxes, but the majority of DSCR cash-outs stop at 75%. It's also worth noting that the higher the LTV you look for, the higher the rate will typically be.

    It's also worth noting that a fair number of lenders will reduce LTV if the property is a short-term rental (STR) vs. having a long-term rental (LTR) in place.

    1Reply
  • Matthew Kwan
    Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
    2y

    We have products that offers cash out refinance for primary residence or 75-80% for non primary depending on the property type.


    @Carlos Valencia @Albert Bui

    1Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    2y

    Our company has access to a 90% LTV cash out refinance loan for primary residences with no mortgage insurance. It's a niche product.

    [email protected]619-456-8311
    Helm Mortgage Corp.5119 Reviews
    WebsiteView Page
    0Reply
  • Albert Bui
    Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
    2y
    Quote from @Shaqiul Chowdhury:

    Hello all,

    I fully renovated a property in Decatur, GA but it has been sitting in the market for a while and I'd much rather keep it for a few years and watch it appreciate further than take a loss as it is a great property in a great part of Decatur. The house will surely continue to appreciate while I either rent out the property or Airbnb it. I currently have a hard money loan on the property and am shopping lenders to cash out refi. Is there any recommendations for lenders that would do a 90% LTV with favorable terms? My credit is still very strong and I would refinance and keep it within an LLC.

    Would appreciate any insight or help as it has been a very stressful time and I am looking to move quick on refinancing. Thanks in advance.
     

    90% LTV product cash out is for primary residence and has no monthly MI pricing is about 1-1.375% higher than conventional going pricing so there is a slight premium for it but it is 30 year fixed and available for those who need the money compared to other options available.

    You can always transfer to LLC later on once you've seasoned your payment history on the loan for 6+ months to be safe.

    @Matthew Kwan

    @Carlos Valencia

    0Reply
  • Bryan MaddexBusiness Member
    Lender · Charlotte, NC · Member since 2015 · 160 posts · 76 votes
    2y

    I love it when a post that is more than a year old gets dug up :)    All the lenders on here are just super excited that UWM announced a 90% cashout refi conventional option. 

    Probably still more wise to keep your cash out refi to 75% or 80% (on a primary) and do a 2nd mortgage for the last 10%. Your blended rate will be better and you can focus on hammering away at the 2nd mortgage which is the higher interest rate. 

    Enjoy the year old post everyone!

    Bello Mortgage powered by Coast2Coast Mortgage
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