Cash Out Refinancing Help - Need Banks/Lenders?

The following users voted for this post: Bryan H., Bryan A., Steve B.

Posted: 09/28/2010 at 10:04PM

Portfolio lenders are the only people that are going to touch this. I have looked with no success at this point.

The following users voted for this post: Bryan A.

Posted: 09/29/2010 at 06:23AM

 Yup, if you can find a local portfolio lender, you should be able to get this done (though probably only at 65-75% of ARV or purchased value). As an example, I have a lender (a small bank) in my area that will cash-out refi at 80% of the purchase price (for short-term loans) or 65% of the purchase price plus rehab costs (for loans up to 5 years) immediately after I purchase and/or rehab the property.
So, these lenders do exist...start visiting your very small, local banks...

The following users voted for this post:

Posted: 09/29/2010 at 11:59AM

 Had a lengthy call with a local bank known as "investor friendly".
- They'll do cash out refis (on REO properties that are initially purchased for cash, for example) for 80% of (purchase price + documented rehab expense).
- 1 pt to the lender
- Other costs just $200-$300. They do their own inspection/comps, pay for lender's title and closing costs.
- Rate is 6.75%, 15-20 year amort term, rate resets after 5th year (based on prevailing rates at that time, not directly indexed), and resets annually thereafter. They won't lock rates for long terms on loans they're keeping (very prudent given their funding profile).
- No prepay penalties, so could be financed conventionally after one year seasoning if you wished.

Conventional Loans for Properties 5-10?

1. Posted: 10/26/2010 at 12:30PM
Citimortgage will lend to someone with more than 4 mortgages, but they require a 720 credit score and a maximum 70% LTV:
* 30 year fixed = 4.75% + 1.75 pts, or about 5.375% if you finance the pts.
* Must have 6 mths cash reserves on all properties (Fannie standard)
* LTV will actually go to 75%
* Only 1 and 2-unit properties, no 3's or 4's
* Lender fees of $665 (this is very competitive)
* He stated up front will be lengthy underwriting, having to verify operating results on 5+ properties
* Will loan down to $10K, believe it or not.

2. Posted: 10/27/2010 at 02:53PM
OK, new buy-and-holders, here's what I've found out on investment property limits for largest US lenders.
Wells Fargo -> 4 investment + 1 home = 5
B of A -> 4 investment + 1 home = 5
Chase -> 4 total including home = 4
Citi -> 10 including home (no 3 or 4-unit after 4th property)
GMAC - fell asleep waiting
US Bank - fell asleep waiting
Sun Trust - fell asleep waiting
Provident
BB&T
Quicken -> 4 inv + 1 home = 5
Flagstar -> 10 including home (no 3 or 4-unit after 4th property)

Homepath Mortgage Lenders - investment property purchase experiences?

1.  Posted: 08/06/2010 at 11:40PM
I recently closed on my first investment property using the Fannie Mae Homepath product. I was able to close on the property with reasonable closing costs, 10% down as an investor, and closed within 30 days. I didn't pay any points at closing, so the interest rate was high, 6.25%. I used the big bank, Wells Fargo, for financing.

2. Posted: 09/22/2010 at 09:17AM
 I closed on a Homepath loan in August. It was a really good buy but I had to put 15% down. HomePath changed requirements in August. 3% OO, 10% 2nd Home, 15% Investors. The process was not bad at all. Paid 1.5 points for a rate of 5.25. No PMI, No Appraisal. I did have to buy a survey though.

Investor Friendly Lenders in MA?

Posted: 11/14/2010 at 05:19PM

The following users voted for this post:

I've used mercantile bank...they are a commercial lender...vie refinanced out of hard money into 20 yr notes with them on 3 family properties...they're in Boston...good luck, where are your properties?

Renting Advertisement

1. Craigslist
    * Free but low quality tenants

2. www.renterexpress.com
    * $195 listed to MLS

3. Research to market and listed as lower end of the market price. Renters are usually very price sensitive. $25/$50 would make the differences.

4. Charge for $20 ~ $25 fee for application per applicant
Application fees are not refundable in principle.  This should be written on the front page of application form.  Print in bold letter: "$25/person non-refundable application fee is required for getting the application processed".

5. Always check credit:

    Go to www.youcheckcredit.com to setup a landlord account.

Septic System or Title V

Replacing the septic tank and leach fields 2008-09-06 22:35:15
Septic Tanks and Leach Fields are common in northern states, depends on size of the house, how many bedroom / bath room, each state may have different requirement.
and it also depends on soil sample, your county health inspector need to come out and test the soil, and let you know what type of septic system you allow to install, then they will issue a permit for the work.
a typical gravity fed system on a 3 bedroom /2 bath house needs a 1000 gallon tank and 300 feet of leach fields, cost $3200 to $4000, plus time to dig out the old one.
if the soil test out bad, then you need a mounted system, it will cost $6000 to $8000.

Section 8 Experiences

Exp 1:

I have sec 8 tenants.

sec 8 tenants are usually lower quality tenants, if you have a nice property, don't, but if your house is older but still up to code, go for it.
you have to sign a contract with local sec 8 housing authority, usually the rent is slightly below market when you sign on, but you can request it be increase the second year.
you also need to keep the premise update and meet your local code, yearly inspection is required.
you will guarantee to get paid every month on the spot from HuD, sometimes tenants are responsible for portion of the rent, you make sure you on top of that, because again, these are lower quality tenants.
you will have more responsibility than renting to market, you will need to report move in/ move out, repair must be done within 10 days after report.
so, it depends on how your local rental market go, you have to think about is it worth the extra time you spend on paper work.
I once had 13 Hud voucher, now I still have 9.

Exp 2. 

You need to check with her case worker to be sure that she has been approved, and your rent is within the limit of the type of dwelling she has been approved for.
Also you need to make sure she is a good tenant, clean, no illegal activities.
If you lease to her, the city will send someone for an inspection (mostly safety issues, no broken windows, no peeling paint, proper illumination, fire alarms, etc.) The city will send you payment record to report taxes.
The downside is it is not easy to terminate the lease with Sec. 8. So if you plan to flip the house in the near future, better go with someone else on month to month lease.