Brrrr Refinancing Options

5 Replies

Hello BP community

I recently purchased my 1st Brrrr project in Indianapolis.

I have Bought it outright , finishing rehab. 95% of my liquid is in the house.

So I am having a hard time finding a lender with my limited Liquidity and 40k 1099 that I pay myself Fico 670

Hoping to cash out and purchase another Brrrr

Trying not to wait 6 months seasoning owned almost 3 month

Any help would be greatly appreciated 

63k PP 25k Repair 125k Arv

Thank you in advance

At this point, @Eric Ortiz , I think your expectations are unreasonable. Very few banks have seasoning periods shorter than 6 months. Any lender at least expects the renovation to be finished before the new appraisal. Your situation really doesn't give the lender any flexibility. You're asking to "break" two rules (seasoning period and the fact that it's not rented yet) without offering any additional assurance (like a good credit score, decent income, track record).

I think you should ride out the process, get the property cash flowing, and bring that success to the bank.

@Eric Ortiz if you have ANY lender that will offer you a loan in your current scenario I would take it. If you have been paying yourself 1099 for less than 2 years that means you will absolutely need a "portfolio/commercial" style loan. Those loans come from the lenders own "portfolio" of money (thus the name). Meaning, each lender will have different rules. Mostly they can ignore your personal income and base the loan off of the cash flow of the property. There absolutely could be a lender that might not have any seasoning in this realm but the 670 score will be a big deterrence to most lenders in this realm. So if you do have a lender that can do it, then plan on using them...but maybe still search for other lenders too. Try posting in the Indiana forum for example. You need some good locals to help you find lenders in this realm.

Also, just a word of caution:  make sure that the lender who has told you they can do it is a portfolio lender.  Meaning, not Fannie/Freddie.  That is, unless you have paid yourself for 2 years and they have reviewed 2 years of your tax returns.  In other words, if they have PREQUALIFIED you fully.

And now that I mention it like that, if you have been PREQUALIFIED with a Fannie/Freddie lender then I can show you how to get your money back with no seasoning....but if you don't have 2 years of income on your tax returns then you won't be able to get a loan in that fashion.

I hope all of this makes sense.  Thanks!

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