Hey guys,
What are your thoughts on the future of being able to refi out of HML to a conventional loan? I’m talking mainly about multi-fam investment properties. What types of loans/situations will be affected the most? Thanx
I can tell you it’s 50/50 on the residential side (4 units or less). We used to be able to slam through unseasoned rate and term refi’s all day long to 90% and then those programs went away. Then we used the 70% SISA that FNMA bought and then that went away.
I have a private mortgage pool that makes rehab loans and obviously the take out loan is essential to our success. I am now negotiating master take out commitments with local portfolio lenders so I can have a reasonable expectation that we can get these done.
On the commercial side, 5+ units, it’s always been tougher. The property needs a strong DSCR and sponsor to refi at 12 mos or less. I have a program that does cash out to $750K on multis with 6 mos seasoning but the rate stinks and it’s full doc only.
This is a tough issue.