Hi, I have a few questions about refinancing an investment property. Here is the situation: My partner and I are rehabbing a home in the historic district of Dallas. A conservative ARV on the home is $275K, although many realtors think $300K is more realistic. We owe $130,000 on the loan and are paying around 17 or 18% (I’m not sure what the exact rate is, my partner has been making the payments). Anyways, we are about half way through the $60,000 rehab, and the carrying costs are eating us alive. Here is my question: What LTV can we expect with a NOO refinance (credit score is around 750)? What value will the refinance be based on since we are not completely through with the repairs?
Thanks for the help
There is a lending product that will lend up to 75% ARV (206k). Full doc only. Rates are very are in the ALT A range. Around 7%. Roll in up to 9% for closing costs.
hard money could most likely take you to 70% ARV in most cases. And as you know you won’t have to worry about income information.
There are only a couple conventional lenders that will do a rehab loan and take over existing financing. They can loan up to 80% of the arv but income/assets would need to be disclosed. Would probably cost around 3-4% in total costs with rates around 9-10%.
As previously mentioned, a hard money loan of up to 70% could easily be made. However, these will have higher costs. Around 5 pts. Four months of payments could be rolled into the loan, possibly more if there is room. This would eliminate having to make payments.