80% ltv cash out on rental property

Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
Yes, but not all so you'll have to call around
1 Reply
Brie SchmidtBusiness Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
8y
@Joe Bruck - depends. If it is 2-4 units it will be 70% on a cash out
Podcast Guest on Show #132
Second City Real Estate4.821 Reviews
Website View Page
0 Reply
Ryan O'Mara
Financial Advisor · Des Moines, IA · Member since 2017 · 173 posts · 58 votes
8y
@Joe Bruck - I work with a lot of lenders and I know of none that go up to 80% LTV. 75% is the highest for cash out refi. And that depends on your FICO, seasoning, and DSCR.
1 Reply
Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Ryan O'Mara my local credit union does 80% cash out, on 15 or 25 year notes.
0 Reply
Joe Bruck
OP
Brooklyn, NY · Member since 2016 · 61 posts · 13 votes
8y
Originally posted by @Ryan O'Mara:

@Joe Bruck - I work with a lot of lenders and I know of none that go up to 80% LTV. 75% is the highest for cash out refi. And that depends on your FICO, seasoning, and DSCR.
Penfed will do 80% LTV the caveat you can't own 4 or more properties ,
0 Reply
Alex P.
Investor · Longview, WA · Member since 2015 · 94 posts · 176 votes
8y
I'm in the middle of cash out refi for properties 7&8. 80% LTV 30 year terms. It's out there just keep looking.
0 Reply
Ryan O'Mara
Financial Advisor · Des Moines, IA · Member since 2017 · 173 posts · 58 votes
8y
@Jason D. and @Joe Bruck - I really should have qualified my previous statement more: Local banks and credit unions may well provide this. I don't work with banks for loans under $1mm for the simple reason that if a borrower is bankable with a deal that small, why would they need me to broker the loan? If you and your deal are bankable, go with the bank loan as long as you don't mind jumping through all the hoops.
My lenders are not banks and provide financing for deals and borrowers that are not bankable. None of the lenders I work with would do 80%LTV cash out. But they are more flexible in many other ways.
1 Reply
Josh Huber
Rental Property Investor · Coldwater, OH · Member since 2017 · 28 posts · 11 votes
8y
I've seen 80% on a 30 year. Very hard to find, but worth searching for.
0 Reply
Matt M.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
8y
@Alex P.
@Josh Huber
Where are these 80% lenders on rentals?
0 Reply
Alex P.
Investor · Longview, WA · Member since 2015 · 94 posts · 176 votes
8y
Local mortgage company in my town. Life Mortgage, it is a division of Mann Mortgage.
0 Reply
Joe Bruck
OP
Brooklyn, NY · Member since 2016 · 61 posts · 13 votes
8y
Im unable to find a lender in Maryland who does 80% , I wonder if other investers with property in MD had more luck...
0 Reply
Ryan Henderson
Investor · Madison, MS · Member since 2017 · 4 posts · 2 votes
8y
I've only been able to find 75% LTV on conventional 30yr mortgages for my rentals. One bank will do 80%, but the pricing increases dramatically compared to 75%.
0 Reply
Brad Smith
Lender · Perry Hall, MD · Member since 2015 · 100 posts · 44 votes
8y
80% is possible with 250K loan amount and 12 months reserves and 700 score.
0 Reply
Josh Huber
Rental Property Investor · Coldwater, OH · Member since 2017 · 28 posts · 11 votes
8y
@Matt M. - I'm an Ohio resident, but found it at First Citizens in NC. I'm not sure if it's typical for them, but it's my understanding that having a solid business plan was helpful in obtaining the 20% DP option. Again, it's hard to find a bank that allows 20% DP, but it's well worth your time to look.
Lower DP = Higher Growth Rate
0 Reply
Brian Garrett
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
8y
Originally posted by @Josh Huber:
@Matt M. - I'm an Ohio resident, but found it at First Citizens in NC. I'm not sure if it's typical for them, but it's my understanding that having a solid business plan was helpful in obtaining the 20% DP option. Again, it's hard to find a bank that allows 20% DP, but it's well worth your time to look.
Lower DP = Higher Growth Rate
20% DP is normal for acquisition. He’s talking about cash-out refinances.
0 Reply
Josh Huber
Rental Property Investor · Coldwater, OH · Member since 2017 · 28 posts · 11 votes
8y
@Brian Garrett @Matt M. - My apologies. I misread Matt's question. My local lender Mercer Savings Bank in Celina, OH does 90% LTV if you agree to variable rates (the variable rate couldn't exceed a 4% change throughout the life of the loan the last time I checked, which was ideal when rates were 3.5%) , 80% LTV if you agree to fixed 15/20 year terms, or the standard 70% LTV with fixed rates and a 30 year term.
0 Reply
Stephanie P.Pro Member
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
8y
Originally posted by @Josh Huber:
@Brian Garrett @Matt M. - My apologies. I misread Matt's question. My local lender Mercer Savings Bank in Celina, OH does 90% LTV if you agree to variable rates (the variable rate couldn't exceed a 4% change throughout the life of the loan the last time I checked, which was ideal when rates were 3.5%) , 80% LTV if you agree to fixed 15/20 year terms, or the standard 70% LTV with fixed rates and a 30 year term.
Who is this magical unicorn lender that will do 90% cash out on an investment property ARM?
0 Reply
Josh Huber
Rental Property Investor · Coldwater, OH · Member since 2017 · 28 posts · 11 votes
8y
Mercer Savings Bank, based out of Celina, OH. The catch is they don't like to lend outside of the community.
0 Reply
Matt P.
Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
8y
Nobody is going to give you a 90% cashout on an investment property.
3 Reply
Michael Huck
Westlake Village , CA · Member since 2018 · 27 posts · 9 votes
8y
Originally posted by @Matt P.:
Nobody is going to give you a 90% cashout on an investment property.
I can confirm that, there has to be skin in the game and at that LTV you would have almost none and the lender would be left holding the bag. Even on an Owner Occupied property a 90% cash out starts to get pretty difficult.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.

No results found