Refinance Multi Unit
What are the title seasoning and credit requirements to get a decent loan when refi a multi unit property. Thinking of using hard money to get in and want to make sure that I am able to refi after 12 months is up. Any pointers
Typically to get a good rate, at least one years of financing numbers need to be in place. If you are getting Hard money make sure you factor in 25%. After all the fees, exit points, and interest rate, thats what you will truly be paying.
Good Luck,
Kyle
...and of course the equity you have is the greatest consideration.
If you own a building worth $500,000, and you are looking for a loan for $300,000 or less, I would say your chances are good fo finding hard money, and greater if you have very good credit.
As a mortgage broker, I know you can get a 4 unit refinanced if owned for 12 months without much headache. What lenders are going to look at is your Schedule E to determine how much money you are really making and what the true costs are. If you want to get it re-financed earlier, you might have to pay a higher interest rate then if you had waited a full year. Plus if you own the property less than a year, they will use the purchase price or the previous appraisal to determine the lending value at which "they" will determine what the LTV would be for you. This does depend on the lender of course. If you need further clarification just ask.
Respectfully,
Phil ~
Phillip Herrejon
312.375.7132