When is 75 LTV coming back for BRRRR?

Question

Before COVID-19 we were seeing lenders offer 75-80 LTV on a 30 year cash out refinance. Lenders are now doing 65%. Does anyone have any true insight (not a guess) on when we might get back to previous LTV’s?

Andrew Postell · Answer

@Daniel Ferster I can't speak for every lender here obviously but there are still lenders who are doing 75% LTV on cash out refinances.  Many lenders did not change any lending parameters.  You just need to find them.

My recommendation here is to post in the Virginia forum to see if any locals can guide you to some lenders.  Usually the local state forums that Bigger Pockets has can provide more of a local response.  Also, please reference what TYPE of money you are needing:  portfolio/Fannie/Freddie/etc.

Hope this helps in some way.

Jaysen Medhurst · Answer

No one knows, @Daniel Ferster. Anyone who says they do are lying or trying to sell you something. The path and duration of economic recovery is unknown. Beyond that, RE is a lagging indicator, so any hit to the market is likely to be further down the line. Lenders know this and are going to continue to be pretty conservative.

Beyond the cash-out, do you need to do a refi? E.g. balloon payment or rate increase is imminent? If not, why not consider a HELOC?