Cash out refi seasonal period
Member since 2023 · 191 posts · 21 votes
Cash out refi seasonal period
Most Popular Reply
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
3y@Chris Kendrick, you're on the right track. A credit union or your local/regional community banks will offer portfolio loans to cash-out refi. Those portfolio loans will have a wider variety of rates and terms. Rates may be fixed or variable. The LTV might be 70%, 75% or 80%. In addition some may have a seasoning period of 1 year, 6 months or none at all!
If you need to move quickly, then you want to shop around and find out which lender has the terms including seasoning period you want.
With some who do have a seasoning period, you might ask if they will waive it if you pay for 2 appraisals and use the lower or average of the two.
With portfolio loans, the lender is lending their own money and will keep the loan. So, they have MUCH more control over the kind of terms and conditions on the loan unlike a conventional conforming loan that needs to follow strict guidelines to be resold after its originated.
21 Replies
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes3y
@Chris Kendrick, you're on the right track. A credit union or your local/regional community banks will offer portfolio loans to cash-out refi. Those portfolio loans will have a wider variety of rates and terms. Rates may be fixed or variable. The LTV might be 70%, 75% or 80%. In addition some may have a seasoning period of 1 year, 6 months or none at all!
If you need to move quickly, then you want to shop around and find out which lender has the terms including seasoning period you want.
With some who do have a seasoning period, you might ask if they will waive it if you pay for 2 appraisals and use the lower or average of the two.
With portfolio loans, the lender is lending their own money and will keep the loan. So, they have MUCH more control over the kind of terms and conditions on the loan unlike a conventional conforming loan that needs to follow strict guidelines to be resold after its originated.
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
It depends on the loan, if you're refinancing with the same loan then there is nothing you can do about it. My DSCR loans are requiring a 6 month seasoning.
- Member since 2023 · 191 posts · 21 votes3yWhat is your rate on that dscr loan, probably like 10 percent?
Quote from @Eliott Elias:
My DSCR loans are requiring a 6 month seasoning, if you're stuck at a 12 month seasoning there is nothing you can do about it.
- Lender · Member since 2022 · 217 posts · 148 votes3yPar rate on DSCR loans (with solid credit, not max LTV, and sufficient cash flow) is now low to mid 7s.
Quote from @Chris Kendrick:
What is your rate on that dscr loan, probably like 10 percent?Quote from @Eliott Elias:
My DSCR loans are requiring a 6 month seasoning, if you're stuck at a 12 month seasoning there is nothing you can do about it.
- 3yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votesYou can get a DSCR loan with as little as 3 months seasoning. Most are at 6 months. The max loan to value after 6 months is going to be 80% of the new appraised value. Rates aren't kind to max ltv though, putting you in the 8's on a 30 year fixed although a 40 year fixed is available. PM for more details.
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
Stephanie - Austin, TX · Member since 2018 · 164 posts · 107 votes3y
Security National may be able to help you with this. If you wire the rehab money to escrow at the same time as you purchase the property and it's all on the HUD..then they will consider that "Delayed financing" and you wont have to wait the 6 months to get a loan based on ARV instead of purchase price.
- 3yJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
Hurst Real Estate, INC4.991 Reviews - Member since 2023 · 191 posts · 21 votes3y
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
- 3yJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
Hurst Real Estate, INC4.991 Reviews - Member since 2023 · 191 posts · 21 votes3y
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
- Member since 2023 · 191 posts · 21 votes3y
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
- 3yAlex BekezaBusiness MemberLender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
@Chris Kendrick We offer up to 75% LTV cash out using new appraised value as early as 90 days of title seasoning! No need to wait 6-12 months if you're stabilized and leased. 30 year fixed DSCR loans with rates shockingly close to Fannie/Freddie.
Investor Property Loan5306 Reviews - 3yJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
Hurst Real Estate, INC4.991 Reviews - Member since 2023 · 191 posts · 21 votes3ySo i could do a cash out refi within or less than 6 month with a conventional loan, also can i do any type of cash out refi loan ,like 5/1 arm or interest only etc..
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
- 3yJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
So i could do a cash out refi within or less than 6 month with a conventional loan, also can i do any type of cash out refi loan ,like 5/1 arm or interest only etc..Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
yes, you can when paying with cash with the limitations I mentioned above. You can hypothetically do an ARM but you will not want to as conventional non-owner occupied ARM's will be higher then the fixed rate and conventional does not allow interest only. You could do those things with a DSCR but again there are negatives with those loans as mentioned above.
Hurst Real Estate, INC4.991 Reviews - Member since 2023 · 191 posts · 21 votes3y
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
So i could do a cash out refi within or less than 6 month with a conventional loan, also can i do any type of cash out refi loan ,like 5/1 arm or interest only etc..Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
yes, you can when paying with cash with the limitations I mentioned above. You can hypothetically do an ARM but you will not want to as conventional non-owner occupied ARM's will be higher then the fixed rate and conventional does not allow interest only. You could do those things with a DSCR but again there are negatives with those loans as mentioned above.
Wanted to do an 5/1 arm cause interest rate was at 5 percent
- 3yJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
So i could do a cash out refi within or less than 6 month with a conventional loan, also can i do any type of cash out refi loan ,like 5/1 arm or interest only etc..Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
yes, you can when paying with cash with the limitations I mentioned above. You can hypothetically do an ARM but you will not want to as conventional non-owner occupied ARM's will be higher then the fixed rate and conventional does not allow interest only. You could do those things with a DSCR but again there are negatives with those loans as mentioned above.
Wanted to do an 5/1 arm cause interest rate was at 5 percent
Then that is not a conventional program. they would have their own guidelines around delayed financing and it apparently is waiting a year. Pro's and con's and can not always have it all.
Hurst Real Estate, INC4.991 Reviews - Member since 2023 · 191 posts · 21 votes3y
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
So i could do a cash out refi within or less than 6 month with a conventional loan, also can i do any type of cash out refi loan ,like 5/1 arm or interest only etc..Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
yes, you can when paying with cash with the limitations I mentioned above. You can hypothetically do an ARM but you will not want to as conventional non-owner occupied ARM's will be higher then the fixed rate and conventional does not allow interest only. You could do those things with a DSCR but again there are negatives with those loans as mentioned above.
Wanted to do an 5/1 arm cause interest rate was at 5 percent
Then that is not a conventional program. they would have their own guidelines around delayed financing and it apparently is waiting a year. Pro's and con's and can not always have it all.
Oh ok, so what is the rate with the conventional program, is it around 6.5
- Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes3y
@Chris Kendrick how about a DSCR option loan
- Member since 2023 · 191 posts · 21 votes3y
Quote from @Bud Gaffney:
@Chris Kendrick how about a DSCR option loan
Rates are around 8, trying to get rates low as possible, without waiting a year
- 3yAlex BekezaBusiness MemberLender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
@Chris Kendrick Today you can get into the mid 7s fairly easily with only 90 days seasoning.
Investor Property Loan5306 Reviews
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