My husband and I have an LLC with 3 private lender loans with balloon payments coming in 10 months. We also own 4 properties (mortgaged) under our own name. I have made several attempts through local banks for refi of 1 loan to pull equity and pay off 2 from private lender, but banks are not cooperating. Both of us have Fico scores in 710-720 range, and 15 yrs history of paying mortgages on time. I am at my wits end, any ideas out there?
I recommend waiting until a few months before your loan is due to try to work with banks again. The credit markets are simply in a tremendous amount of turmoil right now and it’s difficult for investors to get bank financing.
You might look at getting note buyers or private lenders to refinance though. They will probably be able to set up the transaction at a lower expense and charge a lower ongoing rate than a bank would.
I hope this is helpful…
Herman A. Brunson, Jr.
There are still lenders/banks allowing for more than 4 financed properties. More than likely these won’t be 30yr fixed rates. More like 20yr am with 3-5yr balloons.
Renogiate with your private lenders–I’m sure they want to keep being paid.
I am in a similar fix. I want to refinance my home as I have a Home equity line of credit that fixed at 8.8%. Like you, my credit scores are in the 720’s and I have a perfect payment record on my loans.
My local mortgage broker today told me that only FIVE FNMA/FREDDIE MAC loans are allowed per borrower, up from four. So I can not refinance unless I go to a commercial bank.
We have a 2nd home as well, a modular home, and no one is lending in that entire tract. The local bank said “We can’t find any investors to sell the loans to.” You can not sell a home there unless you carry the paper–amazing!
I agree with Bosshaug–put those private lenders on notice NOW that you can’t get their money back to them through no fault of your own. They will need to extend until financing loosens up.
If you’re talking about refinancing your primary home there is no restriction.
Is it possible for you to refinance the current properties you own into your name only, and then have your souse refinance the private mortgaged properties into his/her name only?
If you guys havent heard, Fannie is now allong for 10 financed properties again.
Select lender announcements
March 1 is the kick off date
75% purchase 1 unit
70% no cash out refi 1 unit
70% purchase or no cash out refi 2-4 units
6 months reserves for all investment properties owned
- side note - properties 1-4 will require 6 months reserves for subject and 2 months for all other investment properties.
(fannie reserve changes not not mandatory till June 1 but you will likely see lender overlays prior to this date)
Thanks, InvestmentLoans, for that info. The lenders I was talking to here said the personal residence was included.
Hopefully these refinance problems are now ending with the new relaxation of fnma-fhmc regulations.
The guidelines are pretty stringent but hopefully this will help investors get some of their properties refinanced to lower rates. Investor rates are still in the mid to high 5% range.