Anyone know of any lenders that would be able to refi 30properties to 90%cltv, investor, Stated? Client has 60properties total, with 40 currently showing on credit…
most lenders max out at 80%ltv it seems for this amount of properties. Then the few that go to 90% that allow unlimited owned properties will only refi 3 or so.
Mike,
This is possible but ther is a lot of questions here.
Do all of them require cash out?
How long have they owned?
Are they in a llc? How many people are on the llc?
What is the credit score?
How much in liquid assets?
etc
etc
etc
and on
and on
and on
yeah, lots of questions to be addressed.
what is your relationship to them?
yes cashout on all
3-17yrs for ownership
Not in llc
750 fico
150k in checking
relationship is business
Mike,
You will have to spread that many houses out over a couple of different lenders, but you should not have too much trouble. Some lenders will do up to 20 including your primary. I would go with 90% No MI loans on all of these. Your rate will be a bit higher but it will be tax deductible. You should be able to get a pricing break because of the number of loans. My suggestion would be to shop a couple of brokers, fill them in on the specifics, and see who will cut you the best deal.
Mike,
With the info you’ve given this investor should be just fine.
Like Chris said, there are lenders that will do as 90% 1 loan with no pmi. However, this may not be the best structure. It will really depend how long they plan to keep the property and what the loan size is.’
For smaller loans, $75,000 - ~$125,000 a 1 loan structure may make sense if holding short term. While if holding long term with higher loan balances would be better structured with a combo loan using a very low first mortgage rate.
This should be a very simple process and the investor should definitely speak to a nationwide mortage planning consultnat who specializes in investment scenarios like this.
After running the scenario through Mortgage Coach, the numbers depend on what the rate is on the second lien. Based on a low first rate of 6.625% and a second of 13.5% (since this is an alt-A borrower due to the number of loans on his credit report), the difference between doing an 80-10 and a straight 90 at 7.5% with no MI is only $5 a month in favor of the 80-10 scenario. These numbers are based on a $200,000 property value.
I also based the 2nd lien in the 80-10 scenario on a 30-year amortization. At 15-year amortization on the 2nd, the straight 90 actually comes in at $26 less each month and they will see a better tax savings on it as well.
Hope this helps.
Without running the #s through Mortgage Coach, I’d probably have to say that 70/20 would be better. I rarely structure any of my deals as 80/10. Sometimes I even go 65/35 depending on what the investors future plans are. This can give the benefit of being able to pay off the 2nds and be left with extremely low first mortgage terms.