Are banks making it hard on the brrrr method

5 Replies

So I have a house that I was going to refi and repeat. I currently have it under a construction loan. I've only called a couple of banks that I deal with so far. The local bank that I have the construction loan with will only loan me what I have into the construction loan. No cash out refi. That one is no big deal because I would like to get it on a 30 year fixed and they don't offer a 30 year fixed. The other one, credit union, said they will only loan up to 50,000 on a rental property. That seems odd to me. 50,000 will only buy a small property in a very bad part of town. I want no part of this. I was going to reach out to someone else on Monday morning. Is any one else running into this problem.

We've just completed a BRRRR and are about to take the refi steps on two more properties.  No issues on our end thus far.  Fingers crossed.

All of the lenders I work with are the opposite.  They won't do a rental loan less than $75K.

@Kevin Allen

Banks are still lending, but it’s definitely not business as usual.  Keep contacting small local banks you should be able to find one.  There are other options like portfolio and asset lenders, but your rate is going to be in the 6 and 7 percent.  

Originally posted by @Ron Brady:
We've just completed a BRRRR and are about to take the refi steps on two more properties.  No issues on our end thus far.  Fingers crossed.


 

Goodluck ron. What market is your main focus ?