Will it ever be possinle to Refi at a good rate???

Question

﻿﻿As I ﻿am writing this I am very agitated and will be ranting a bit. I ﻿am a professional pickleball player (yes, as crazy as that sounds it is a thing). I coach and train folks at one of the most luxurious country clubs in the country (there is an airstrip on-site). It is a seasonal job that is very lucrative and a ton of fun. The problem I am facing is that it is a seasonal job.

Let me explain a bit about myself:

1. 778 credit score

2. Cash reserves in the bank

3. Never bankrupt or anything else negative.

I own a property free and clear. It is now worth about 240k and I would like to refi it so I can use that capital for my next investment. I own nothing on this property. I have spoken to many hard money lenders and they are more than happy to refi or just give me a regular loan but I am looking at rates 8-12%. I rather refi with a bank. I have tried Bank of America (my bank), they said no. I ﻿tried my local credit union, they said they do not refi investment properties. I have applied to other big banks and the answer is always no. Why is the answer no, well you see I said that it is a seasonal job.

I work there for 7 months and am footloose and fancy-free for the other remaining 5 months. I usually end up going up north and coaching at other county clubs but as a 1099 worker, not a W-2 employee, like I am at my seasonal job. Because of this, I ﻿can not secure a refi when I am not working, which is right now.

So why am I ﻿writing this, well I am looking for guidance. Does anyone know how I could refi this at a good rate? ﻿

﻿﻿

Beth Mulholland · Answer

In theory, any lender should be able to average the last two years of your wages (W2 & 1099) - that said, you likely still need to show proof of some kind of employment at the moment but a 1099 should work. The history is the more important piece, at least in my experience. I would try a mortgage lender/broker over a bank. They can typically offer more options and flexibility as they can shop the loan around. Good luck!

Basit Siddiqi · Answer

@Mike BalcomI have worked at seasonal positions and got approved for mortgages. I have not heard from my lender if my position was seasonal.They want to see money coming in during the period leading up to the close.They want to see that your DTI ratio is below the bank's requirement.They normally do this by looking into your tax return and then verifying it with the bank statements leading up to your purchase.You should consult with more banks.There are also banks that do allow HELOC on investment properties - they are rare but they exist.

Jim Mueller · Answer

@Mike Balcom Have you looked into Park Shore Mortgage ? We have used them for properties in Naples in the past month.

Stetson Miller · Answer

@Mike Balcom Have you looked into Sanibel Captiva? This is the bank that we most frequently use with our investors.

Phil Denton · Answer

@Mike Balcom

Try Option Financial in Cincinnati.  They are super investor-friendly with lots of different ways to lend.

Jaysen Medhurst · Answer

@Mike Balcom, take a look a First Florida CU.

Theresa Harris · Answer

How were you able to buy your current home?  Would you be able (and willing) to rent it out and buy another home that you live in for a year, then turn that new house into a rental and move back home?

Mike Balcom · Answer

@Chris Connolly this is what I first went for but everyone I spoke with said no since it is an investment property or because of no current income. I think a HELOC would be best.

Mike Balcom · Answer

@Tim Johnson the 1099 jobs change ever summer and not for two years in a row now unfortunately but they are on my tax returns.

Mike Balcom · Answer

@Jaysen Medhurst, I am located in Naples Florida

Will it ever be possinle to Refi at a good rate???

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