This is NOT an issue related to seasoning. Rather, this is a topic related to just your standard, full doc, investment, cash out refinance.
Today an announcement came out from a major lender they will no longer be offering “Agency” (just another word for conforming) investment cash out refinances.
I called to confirm if this was a Fannie Mae change or something they are implementing. ALL REGS (which is Fannie Mae’s published guidelines) does not show any changes. The lender’s underwriter explained it was not Fannie Mae, “yet”.
Sometimes lenders will get word down the pipeline of upcoming Fannie changes. They’ll implement them early on so their systems are all in place when it happens.
I’ll make calls to other lenders and also Fannie Mae this week.
This would obviously be huge. Think no seaoning cash outs were difficult, if this happens…ouch!
I just met with a mortgage rep from my local branch who is holding mortgages on some of my properties and I didn’t get a negative response about this issue…I inquired about doing cash out refinancing on 1 or 2 properties that I own with no mortgages and he was ready to start the paperwork…I then asked if this was doable and he looked puzzled by my question and answered “yes why”?..SO others that are in the lending industry please elaborate on this situation because I’m not getting the same information as you are posting here…TY…fwiw my new refi would be a no doc stated income loan…and the mortgage rep knows…
Lenders don’t “have” to do cash out loans, it’s up to them. When I sold RE I worked with a lender that would not do them at all. As a side note, I had very few loans that they would not get done. And some as short as 15 days to close. It may also have been an internal thing due too many bad loans.
Well it’s official…I just did a cash out on a 2 family non-owner occuppied property…The loan was a stated income,no doc 30 year @ %5.9…This a property I bought cash and then took a mortgage out on the property…
I just refi’d two 2-families full doc @ 7.25%, 80% LTV. Was able to pay off my PML and cash out with most of my initial cash. It was a no seasoning program which I was pleased to find. My mortgage broker told me the stated programs have dried up.
Maybe it’s time to explore other financing avenues…
I believe this guideline at this point in time is lender specific.
I actually did my due diligence today on investment products as that is my primary source of business. The banks will still do cash out. However, the ltv will be lowered in many of the soft markets. We all knew that though! But 80% cash out for a N/O/O is still available.
Also, anyone that thinks that 5.9% Stated n/o/o was not doable 2 weeks ago…needs to ask themselves if they should be in this business. It is absolutely possible. It’s possible today only with a point buydown…even with rates deteriorating.
Also, anyone that thinks that 5.9% Stated n/o/o was not doable 2 weeks ago…needs to ask themselves if they should be in this business. It is absolutely possible. It’s possible today only with a point buydown…even with rates deteriorating
Thank you…I posted to show others whats available…I will not mention what bank I went through…Do your own due diligence,as I did…
I concur that paying points is a viable option to reducing the rate. I also concur that ‘several weeks’ ago much lower rates were possible.
A problem with these boards happens when brokers and/or investors post rates. Readers may immediately think those rates are available for them too. Most of the time there’s too much critical data left off which factors into rate, ie…ltv, costs, points to buy down rate, when quoted or locked - Just to name a few.
True comparisons can never be made without the right info.
As far as the cash out goes, max full doc, 1-2 unit, less than 10 financed properties is actually 85%.
From the time of this initial post there have been no other major lenders to stop making the cash out loans completely. Thank goodness.
A problem with these boards happens when brokers and/or investors post rates. Readers may immediately think those rates are available for them too. Most of the time there's too much critical data left off which factors into rate, ie...ltv, costs, points to buy down rate, when quoted or locked - Just to name a few.
That is why the Moderators usually delete any posts that quote some type of rate or program. It is something that should be done off line AFTER all the pertinent information is gathered.
I would be willing to bet my house that your NOO no doc lender will only lend to borrowers within 50 miles from the branch. Further, I’ll bet that if you have more than 5 mortgages, you won’t get a nickel. 5.9% on a NOO no doc loan in a perfect market is giving money away. You sure it’s not a brilliant option ARM with a 5 year pre pay penalty? Come on!
It is a portfolio lender. They can pretty much make up their own rules. With a combination of good credit and assets income documentation may not be required.
Even on conventional Fannie/Freddie loans.
World Savings is one portfolio lender that will go over 10 properties, but they have 12 months seasoning requirements. Any bank that holds their own paper is considered a “portfolio” lender. Just get out your phone book and start calling around.