Is anyone out there running into issues refinancing to pay off the HML after the project is complete? If you are, what problems are you running into. I’m exploring this arena right now and doing my due diligence.
regards,
One of the biggest hurdles, FHA Seasoning, has been temporarily removed. Other issues include:
- qualifying for the refi loan (2 years tax returns required, DTI Ratio issues etc),
- The value holding up on the new appraisal. (Some folks are reporting that the new appraisal companies are using folks with little experience in the markets because they will work cheap. The Lender uses an company to pick the appraiser. )
Problems with Refis? Heck yea! Lenders have gone stupid! Everybodys scared of NOO right now- ever a bank that I did business with as recent as September 2009 who told me that NOO was “the core of their lending portfolio” has discontinued those loans as of last week…
Also Ive found that what DHLC said about appraisals is true as well- and comps are ALL OVER THE PLACE which is making things that much harder! ARGH!
Banks only want First Time Homeowner Obama bucks types. I have great credit, Full doc, DTI very low and amd not able to do anything because I have 5 properties…
Who do these people think are going to soak up all the crap inventory???
ME!!! If the economy is going to crash and burn, I’m going down swingin by buying as much as I can!
if that’s the case my friend. what is your buy and exit strategy? just curious.
Desmond
I’m buying anything that I can cash flow…foreclosure or not. I buy for long-term hold.
In a time when most people can’t get a loan, my loan officer is TELLING me to go get more houses. I told him yesterday we put one under contract for 10k (needs about 3k of repairs and will rent for $500). He said he didn’t want to do a loan that small and that I needed to find another house. So today we put in an offer on another one.
I agree with cooley5, I have great credit, no debt, 5 properties and looking to pick up more BUT the lenders are making it impossible right now. I’m the guy who buys all the crap and puts people to work and the banks are keeping me out of the game.
Hey guys I’ll like to cham in on this discussion. I was just disapproved by Wells Fargo on a refi loan a week ago. I have 4 duplexes one has been completely re-done. I’m getting 20% ROI on that unit. I have enough in-come but still the only response they could give me was income to debt ratio as the reason for denial. The unique part about the whole deal is they had previously approved me until the second underwriter had additional questions. But it’s all good. When thing get back to normal and they will I will return any credit offers from any lenders who send them to my mail box. I’ll get my units renovated without the help of the banks.
Good reason to get away from corporate banks. BTW, that other offer I mentioned a couple days ago…under contract now for 19k. Move in ready, will rent for $550. I love local banks!