Refinancing an Investment Property
Refinancing an investment property is my specialty. I am an
experienced property investor myself and I have developed extensive knowledge of the underwriting requirements
of products for refinancing an investment property. When refinancing an
investment property, you can easily get to 80% of value and with the addition of
either a home equity loan or
home equity line of credit you may
borrow up to 95% of the equity in your investment property. Email with any questions about
refinancing
an investment property.
Refinancing an investment property programs fall into two categories: Fannie & Freddie and our
Investment Property Specialty Programs.
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Investment property refinancing loans sold to Fannie Mae or
Freddie Mac require equity of not more than 80% and will have an investment
property fee of
1.5 points. Please understand that these investment property fees incurred when refinancing an
investment property are imposed by Fannie and Freddie and are not charges from
either your lender or your broker. However, the investment property fee allows using conventional
rates and loan limits. Even with the investment property
fees, these loans can be a good choice when refinancing an investment property if your goals are to maximize cash flow
and you plan to hold the property for a 3 to 5 year period. Ratios are normally
28/36, but with automated underwriting, with excellent credit and some liquid
reserves, it is not uncommon to see back ratios in the middle 40s. Investment
property income is decreased by a 25% vacancy factor but there are
underwriting
methods which eliminates this issue for experienced investors.
The Investment Property Specialty program (actually a growing group of
investor loan programs) allows refinancing with only 5%
equity. The program allows up to 20 properties plus your home. Available up to
$1,000,000 and 2-4 unit properties are acceptable. Ratios are generally 34/40
and No
Documentation loans are available. Available as a fixed or adjustable rate
in many reduced down payment scenarios. Most of the loans we are currently doing
are set up as interest only rather than as a fully amortizing loan to improve
your cash flow. Learn more about the power of interest
only loan products
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For the the greatest flexibility, you may
be interested in the Cash Flow ARM.
Read more about refinancing an
investment property
Closing Costs I have a page on how to calculate your
refinancing an investment property qualification ratios. I have a page on documentation
requirements.
Limited and No
Documentation loans are now available for investment properties.
If your building contains 5 or more units, you will need commercial
loans.
Learn more about investing
Rehab programs
for non owner occupied units Learn about closing in an LLC
As a Certified Mortgage
Planning Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your consumer and mortgage debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
Prequalify for
Refinancing
an Investment Property
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