Refinance options for my property in GA
Atlanta, GA · Member since 2025 · 132 posts · 30 votes
Refinance options for my property in GA
Most Popular Reply
Specialist · NJ · Member since 2022 · 1k+ posts · 652 votes
6moThis is what happens when the numbers are not accurate at the point of purchase.
With a 235k project cost, you'd need an ARV of 335k for the deal to make sense. That's around a 70% project cost. For it to come in at 257k is concerning. Either you were shown comps that do not comp to your house, or the contractor did a terrible job, or the market tanked.
First, no hard money lender is even gonna give you 80% in a refi. 75% and if you have a payoff of 235k, figure in another 5k - 7k in closing costs. That's around 242k needed just to get the lender right and then I'm sure you are in 20k or more.
These are the nightmare situations beginners find themselves in all the time. They really do not realize how big of a spread you need on deals to ensure you do not find yourself in a spot like this.
Before you go and just order another appraisal, look at the comps that were pulled in the report and did you come across those in your analysis? Before you order another appraisal, look for your 300k comps, you really need 335k. Cause even a 300k value is a 225k refi. Between closing costs and payoff you need 242k.
There's no scenario where you don't bring 20k - 30k to closing and also leave your initial money in as well.
I can only imagine this was a "wholesale deal" and you were shown comps 300k+. I have even worse news for you I'm afraid in that houses rarely trade for their ARV in the report. It is usually less.
You have two options.
1) Sell and hopefully get the 257k. If 242k of that goes toward lender and closing, you can recoup 15k of your initial money and you learned a lesson for cheap relatively speaking.
2) You come up with whatever you need to and refi in order to protect the money you have in. Now you are in for what? 50k? And now you are playing he long game. 5 - 10 years down the line you refi and make yourself whole.
There's no way that I see you can close a refi with "little money" needed at closing.
29 Replies
- 6moAJ ExnerPro MemberLender · Springfield, MO · Member since 2023 · 652 posts · 315 votes
Pay for a new appraisal and hope it comes in closer to $300k?
I think that is really the best bet, and even though all appraisers are basically the same **insert joke here** that might be too big of a variance to see the kind of increase you would need to not have to pay any additional closing costs.
Are you going through an AMC or are you reaching out to an appraiser on your own?
- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
my lender did the appraisal and I paid the fees. I dont have funds to bring to closing because U have been paying lot of money on monthly interest every month
- 6moAJ ExnerPro MemberLender · Springfield, MO · Member since 2023 · 652 posts · 315 votes
Which would be tough because many lenders, even if the numbers came together, would still ask for reserves on the refinance before they would close on it.
Are you maturing on your loan or just wanting to move it to a new lender?
- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @AJ Exner:
Which would be tough because many lenders, even if the numbers came together, would still ask for reserves on the refinance before they would close on it.
Are you maturing on your loan or just wanting to move it to a new lender?
refinance from hard money to get the payments low
- Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes6mo
I would agree, best bet is to get a new appraisal with another AMC company.
- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Brandon Croucier:
I would agree, best bet is to get a new appraisal with another AMC company.
yes I will try I dont know if they agree to it
- Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes6moAre you working with a broker?
Quote from @Joshua Kavadi:
Quote from @Brandon Croucier:
I would agree, best bet is to get a new appraisal with another AMC company.
yes I will try I dont know if they agree to it
A broker should be able to order from a different AMC & move the file to another lender (if it comes back better) - Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Brandon Croucier:
I would agree, best bet is to get a new appraisal with another AMC company.
thanks Brandon. will do it .
- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
thanks for the suggestion Brandon
- 6moRod HanksBusiness MemberInsurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
You’re kind of stuck on the math here—at 80% LTV you’re underwater on a refi, so the lender can’t get you out without bringing cash in. You could look at a DSCR lender that will allow a higher LTV and hope rents support it, hope another appraiser will appraise it much higher, or sell it and move on.
I’ve done that before instead of forcing a bad refi—sometimes it’s better to free up the capital and put it into a stronger deal.
No sense getting stuck in something with no flexibility.
Rod Hanks Insurance4.9155 Reviews- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Rod Hanks:
You’re kind of stuck on the math here—at 80% LTV you’re underwater on a refi, so the lender can’t get you out without bringing cash in. You could look at a DSCR lender that will allow a higher LTV and hope rents support it, hope another appraiser will appraise it much higher, or sell it and move on.
I’ve done that before instead of forcing a bad refi—sometimes it’s better to free up the capital and put it into a stronger deal.
No sense getting stuck in something with no flexibility.
I am unable to sell the house since 1 year so I am doing refi and rent it out
- 6moDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
1) if you believe the appraisal is low and can show it via comps and/or adjustments, then appeal the current appraisal. I have had mixed success with this even though every time my case was solid.
2) if the appeal does not work, request a new appraisal.Note if the comps do not justify a higher value, then recognize you will need to bring cash to the closing.
What was the initial plan to get out of the HML? Did you add value? Was this intended to be a brrrrr? Was the ARV lower than you anticipated?
If all else fails, your best choice could be to sell the property.
Good luck
- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Dan H.:
1) if you believe the appraisal is low and can show it via comps and/or adjustments, then appeal the current appraisal. I have had mixed success with this even though every time my case was solid.
2) if the appeal does not work, request a new appraisal.Note if the comps do not justify a higher value, then recognize you will need to bring cash to the closing.
What was the initial plan to get out of the HML? Did you add value? Was this intended to be a brrrrr? Was the ARV lower than you anticipated?
If all else fails, your best choice could be to sell the property.
Good luck
yes selling the property ... working on it
- 6moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Joshua Kavadi:
Dear all,
Need suggestion /Options regarding my Re-finance Loan for my investment property.
Situation : My appraisal came back, the value came in at 257,00 K for single family house in GA.My loan amount is 235 K.
the lender says even if they offer 80% of the LTV is 204 K .
I need suggestions how to structure this deal to get the loan without paying closing cost.
thanks
Joshua
Do you have any comps to support a higher value? Might be able to help on this if there are comps
LuxePrivate Investments LLC 572 Reviews- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Erik Estrada:
Quote from @Joshua Kavadi:
Dear all,
Need suggestion /Options regarding my Re-finance Loan for my investment property.
Situation : My appraisal came back, the value came in at 257,00 K for single family house in GA.My loan amount is 235 K.
the lender says even if they offer 80% of the LTV is 204 K .
I need suggestions how to structure this deal to get the loan without paying closing cost.
thanks
Joshua
Do you have any comps to support a higher value? Might be able to help on this if there are comps
yes I have comp in that area.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes6mo
Ignore every comment everyone has made. The reason I say this is you didn't say how much money you need. The reality is, even if the property came in at $300,000 and you just paid $500 for another appraisal, you can only get 80%, which would give you $240,000 not including closing costs. Even at that level, you're still not where you need to be, so refinancing is not an option.
7e investments53 Reviews - 6moAlex BekezaBusiness MemberLender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
In order to submit a reconsideration of value request to dispute your appraisal you'll need to gather 3 or 4 comps including their:
MLS #
Address
Sales Price
Sales Date
Sq Footage
Bed/Bath Count
Distance from subject property
Any important commentary on why your comps are superior to the ones already used in the report
Investor Property Loan5306 Reviews- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Alex Bekeza:
In order to submit a reconsideration of value request to dispute your appraisal you'll need to gather 3 or 4 comps including their:
MLS #
Address
Sales Price
Sales Date
Sq Footage
Bed/Bath Count
Distance from subject property
Any important commentary on why your comps are superior to the ones already used in the report
thanks Alex. yes doing same thing now
- 6moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 505 votes
There are some options here. It depends on what the property would appraise for if appraised for again. If the appraisal came in lower than expected, you do have the ability to request a reconsideration of value (ROV) or to fill out a form where you tell the appraisal management company (AMC) to tell the appraiser that based on these comps and these reasons, the appraisal should be higher. I have never seen an appraiser change the value of the appraisal.
There are some options here since it's a rental property and you can potentially do a DSCR loan since DSCR loan programs have greater differences in the loan programs as they are determined lender by lender versus conventional loan guidelines that are more uniform. Working with an experienced mortgage lender that specializes in rental property loans / DSCR loans can be helpful since depending on the mortgage broker there's lender options that can be more favorable program guidelines for the investor regarding LTV, rate, etc. There are different program options depending on details specific to you like property location, borrower credit, etc.
Depending on the loan program and the lender, once you already have the appraisal submitted to that lender, most lenders won't lenders won't allow you to submit another appraisal to the same lender. For DSCR loan programs, what a client might do is depending on the loan program, start again with a new lender and order a new appraisal. I've seen appraisals come in tens of thousands of dollars apart on a similar priced property but there's never a guarantee that the value will be higher.
For some DSCR loan programs, the lender only wants the file when all paperwork is ready so the underwriter doesn't seen the first appraisal so if you order another appraisal for the same lender, the lender will only see the second appraisal.
There are some options to get the deal done but i haven't seen a cash out refinance loan at 80% LTV of the appraised value. I have heard of these programs but I have never hard of one funding. Not sure if you are just looking for a rate and term refinance when you change the rate or if you are looking to do a cash out refinance since I didn't it specified in the post. There are ways to get the deal done depending on the factors mentioned. Happy to connect to discuss further.
Bright Skyline518 Reviews- Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Stacy Raskin:
There are some options here. It depends on what the property would appraise for if appraised for again. If the appraisal came in lower than expected, you do have the ability to request a reconsideration of value (ROV) or to fill out a form where you tell the appraisal management company (AMC) to tell the appraiser that based on these comps and these reasons, the appraisal should be higher. I have never seen an appraiser change the value of the appraisal.
There are some options here since it's a rental property and you can potentially do a DSCR loan since DSCR loan programs have greater differences in the loan programs as they are determined lender by lender versus conventional loan guidelines that are more uniform. Working with an experienced mortgage lender that specializes in rental property loans / DSCR loans can be helpful since depending on the mortgage broker there's lender options that can be more favorable program guidelines for the investor regarding LTV, rate, etc. There are different program options depending on details specific to you like property location, borrower credit, etc.
Depending on the loan program and the lender, once you already have the appraisal submitted to that lender, most lenders won't lenders won't allow you to submit another appraisal to the same lender. For DSCR loan programs, what a client might do is depending on the loan program, start again with a new lender and order a new appraisal. I've seen appraisals come in tens of thousands of dollars apart on a similar priced property but there's never a guarantee that the value will be higher.
For some DSCR loan programs, the lender only wants the file when all paperwork is ready so the underwriter doesn't seen the first appraisal so if you order another appraisal for the same lender, the lender will only see the second appraisal.
There are some options to get the deal done but i haven't seen a cash out refinance loan at 80% LTV of the appraised value. I have heard of these programs but I have never hard of one funding. Not sure if you are just looking for a rate and term refinance when you change the rate or if you are looking to do a cash out refinance since I didn't it specified in the post. There are ways to get the deal done depending on the factors mentioned. Happy to connect to discuss further.
thanks Stacy for all the info. My appraisal report came back as 257k but I need it to be 300k so i Need not put down cash for closing . its a investment property and rental property and the rent is $1950. I dont know what to do now . I dont have money to close it . Thanks Joshua
- 6moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 505 votes
Quote from @Joshua Kavadi:
Quote from @Stacy Raskin:
There are some options here. It depends on what the property would appraise for if appraised for again. If the appraisal came in lower than expected, you do have the ability to request a reconsideration of value (ROV) or to fill out a form where you tell the appraisal management company (AMC) to tell the appraiser that based on these comps and these reasons, the appraisal should be higher. I have never seen an appraiser change the value of the appraisal.
There are some options here since it's a rental property and you can potentially do a DSCR loan since DSCR loan programs have greater differences in the loan programs as they are determined lender by lender versus conventional loan guidelines that are more uniform. Working with an experienced mortgage lender that specializes in rental property loans / DSCR loans can be helpful since depending on the mortgage broker there's lender options that can be more favorable program guidelines for the investor regarding LTV, rate, etc. There are different program options depending on details specific to you like property location, borrower credit, etc.
Depending on the loan program and the lender, once you already have the appraisal submitted to that lender, most lenders won't lenders won't allow you to submit another appraisal to the same lender. For DSCR loan programs, what a client might do is depending on the loan program, start again with a new lender and order a new appraisal. I've seen appraisals come in tens of thousands of dollars apart on a similar priced property but there's never a guarantee that the value will be higher.
For some DSCR loan programs, the lender only wants the file when all paperwork is ready so the underwriter doesn't seen the first appraisal so if you order another appraisal for the same lender, the lender will only see the second appraisal.
There are some options to get the deal done but i haven't seen a cash out refinance loan at 80% LTV of the appraised value. I have heard of these programs but I have never hard of one funding. Not sure if you are just looking for a rate and term refinance when you change the rate or if you are looking to do a cash out refinance since I didn't it specified in the post. There are ways to get the deal done depending on the factors mentioned. Happy to connect to discuss further.
thanks Stacy for all the info. My appraisal report came back as 257k but I need it to be 300k so i Need not put down cash for closing . its a investment property and rental property and the rent is $1950. I dont know what to do now . I dont have money to close it . Thanks Joshua
There might be some options here. If you would like to discuss, please send me a message.
Bright Skyline518 Reviews - Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
Quote from @Stacy Raskin:
Quote from @Joshua Kavadi:
Quote from @Stacy Raskin:
There are some options here. It depends on what the property would appraise for if appraised for again. If the appraisal came in lower than expected, you do have the ability to request a reconsideration of value (ROV) or to fill out a form where you tell the appraisal management company (AMC) to tell the appraiser that based on these comps and these reasons, the appraisal should be higher. I have never seen an appraiser change the value of the appraisal.
There are some options here since it's a rental property and you can potentially do a DSCR loan since DSCR loan programs have greater differences in the loan programs as they are determined lender by lender versus conventional loan guidelines that are more uniform. Working with an experienced mortgage lender that specializes in rental property loans / DSCR loans can be helpful since depending on the mortgage broker there's lender options that can be more favorable program guidelines for the investor regarding LTV, rate, etc. There are different program options depending on details specific to you like property location, borrower credit, etc.
Depending on the loan program and the lender, once you already have the appraisal submitted to that lender, most lenders won't lenders won't allow you to submit another appraisal to the same lender. For DSCR loan programs, what a client might do is depending on the loan program, start again with a new lender and order a new appraisal. I've seen appraisals come in tens of thousands of dollars apart on a similar priced property but there's never a guarantee that the value will be higher.
For some DSCR loan programs, the lender only wants the file when all paperwork is ready so the underwriter doesn't seen the first appraisal so if you order another appraisal for the same lender, the lender will only see the second appraisal.
There are some options to get the deal done but i haven't seen a cash out refinance loan at 80% LTV of the appraised value. I have heard of these programs but I have never hard of one funding. Not sure if you are just looking for a rate and term refinance when you change the rate or if you are looking to do a cash out refinance since I didn't it specified in the post. There are ways to get the deal done depending on the factors mentioned. Happy to connect to discuss further.
thanks Stacy for all the info. My appraisal report came back as 257k but I need it to be 300k so i Need not put down cash for closing . its a investment property and rental property and the rent is $1950. I dont know what to do now . I dont have money to close it . Thanks Joshua
There might be some options here. If you would like to discuss, please send me a message.
please check your email so we can talk tommorow
- Specialist · NJ · Member since 2022 · 1k+ posts · 652 votes6mo
This is what happens when the numbers are not accurate at the point of purchase.
With a 235k project cost, you'd need an ARV of 335k for the deal to make sense. That's around a 70% project cost. For it to come in at 257k is concerning. Either you were shown comps that do not comp to your house, or the contractor did a terrible job, or the market tanked.
First, no hard money lender is even gonna give you 80% in a refi. 75% and if you have a payoff of 235k, figure in another 5k - 7k in closing costs. That's around 242k needed just to get the lender right and then I'm sure you are in 20k or more.
These are the nightmare situations beginners find themselves in all the time. They really do not realize how big of a spread you need on deals to ensure you do not find yourself in a spot like this.
Before you go and just order another appraisal, look at the comps that were pulled in the report and did you come across those in your analysis? Before you order another appraisal, look for your 300k comps, you really need 335k. Cause even a 300k value is a 225k refi. Between closing costs and payoff you need 242k.
There's no scenario where you don't bring 20k - 30k to closing and also leave your initial money in as well.
I can only imagine this was a "wholesale deal" and you were shown comps 300k+. I have even worse news for you I'm afraid in that houses rarely trade for their ARV in the report. It is usually less.
You have two options.
1) Sell and hopefully get the 257k. If 242k of that goes toward lender and closing, you can recoup 15k of your initial money and you learned a lesson for cheap relatively speaking.
2) You come up with whatever you need to and refi in order to protect the money you have in. Now you are in for what? 50k? And now you are playing he long game. 5 - 10 years down the line you refi and make yourself whole.
There's no way that I see you can close a refi with "little money" needed at closing.
- 6moJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Joshua Kavadi:
Dear all,
Need suggestion /Options regarding my Re-finance Loan for my investment property.
Situation : My appraisal came back, the value came in at 257,00 K for single family house in GA.My loan amount is 235 K.
the lender says even if they offer 80% of the LTV is 204 K .
I need suggestions how to structure this deal to get the loan without paying closing cost.
thanks
Joshua
Did your hard money lender require a "subject to" appraisal before closing on the property when you purchased? if so, what did it come in at?
Hurst Real Estate, INC4.991 Reviews - Atlanta, GA · Member since 2025 · 132 posts · 30 votes6mo
257 K. but I need 300k to avoid my down payment. i dont have cash to close that 30 K . I am looking for options.
- 6moJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Joshua Kavadi:
257 K. but I need 300k to avoid my down payment. i dont have cash to close that 30 K . I am looking for options.
I was asking what the "subject to" appraisal came in BEFORE you closed on the house in the first place. The 257k value is the current as is appraial after you rehabbed the property. two different things.
Hurst Real Estate, INC4.991 Reviews
- 6moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesHey Joshua, based on those numbers you’re pretty tight on equity, so the main issue is your loan amount is higher than what an 80% LTV refinance will allow, which is why they’re capping you around 204K. If your goal is to avoid bringing cash to closing, one option is to ask the lender about a lender credit where you take a slightly higher interest rate in exchange for covering closing costs, but that still won’t solve the gap between your current loan and the allowed LTV. You could also look into whether they offer higher LTV options like 85% or 90% on investment properties, though those usually come with stricter guidelines and higher rates. Another route is to shop other lenders, since some have different overlays or appraisal review processes that might come in a bit higher on value, though you don’t want to bank on that. If none of that works, you may need to either bring some cash in to hit the LTV requirement or hold off on refinancing until rents or market appreciation push your value up enough to make the numbers work better.
Quote from @Joshua Kavadi:
Dear all,
Need suggestion /Options regarding my Re-finance Loan for my investment property.
Situation : My appraisal came back, the value came in at 257,00 K for single family house in GA.My loan amount is 235 K.
the lender says even if they offer 80% of the LTV is 204 K .
I need suggestions how to structure this deal to get the loan without paying closing cost.
thanks
Joshua
Jimmy Lieu, Red 1 Realty4.9120 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.