Cash Out Refinance In Pa

[Chaz Sztroin]

I am actively looking for a property to BRRR near the Pittsburgh, Pa area. I was discussing the cash out refinance with my realtor who said that the laws in PA makes it nearly impossible to do a cash out refinance on an investment property.

Is this accurate? Does anyone have experience with this in the PA market?

[Kevin Sobilo]

@Chaz Sztroin, find another realtor. One who is familiar with investing or better yet one who IS an investor themselves.

I'm in Northeast PA and an agent myself and I know of no Pennsylvania laws that make it more difficult to do a cash out refi.

If you are purchasing in your own personal name, you might qualify for a traditional Fannie/Freddie type conforming loan. However, if you are buying in an LLC you should contact local/community banks and talk to their commercial lending people. They typically offer 15-20 year ARM loans at 75-80% LTV. You may need to own the property 6-12 months before doing the refi, but that gives you plenty of time to get it rehabbed and cash flowing with a tenant.