Refinance Rental

[babbles]

Long story short, I stupidly ended up with three liens years ago on my property, was at one point 169% LTV, and now with about 30% equity or so on my rental.  I didn't give up and and continued to make payments regardless.   I have always missed the cutoff on the LTV and now sit at about 73% LTV.  Is there anyone out there that would touch me with those numbers??  Credit plus 720 across the board and about 42% DTI with current mortgages.  I am with NFCU and USAA and will try them next week.  Also, does my wife have to be on the mortgage with me??  Thanks for any advice or suggestions!  

[Anonymous]

You didn’t mention income from property, but assuming you’re good there, I’ve seen 75%ltv max, I’ve done hundreds,there are Freddie Mac programs, I believe that will be fixed for 30 years,
Local banks are gonna want a call in 3-7 yrs when rates will most likely be higher.Really need more info , sounds like you’ve been paying at an accelerated pace, is it possible value has risen as they have in my area? This would help ltv also,

[babbles]

Hello,

Yes the Atlanta area has recovered well in the past several years.  I only net about $200 per month but if I could fix it all would be outstanding!   My 1st with chase is an ARM that I've handled for 14 years now @ 123k balance.  2nd is fixed and will be paid off in 18 months (NFCU current amoritization schedule, bal 12k).  3rd is a heloc usaa @52k.   The heloc slows it up more than portion of the loans.  Value of home is between 245-251k.

I guess it's not possible to fix just chase or usaa?  Sure would help!

[me12345]

You are going to have an LTV limit of 75%...

The low end of your estimated value makes it 76% LTV without any closing costs....as long as your DTI is fine, the "Cash Flow" of the rental is not relevant.

I would do more research on the comps in the area before I spend $400 -700.00 for an appraisal only to find out that the value is not there.

Thanks,

[babbles]

Let me add this also, during the time of the housing market crash, plenty of people could get help by not paying their mortgages but because I kept paying mine on time,  seemed no bank including the ones that held my note would touch me.  I would go out to different mortgage forums and I always heard the same thing, stop paying your mortgage to get some help but I didn't want to sacrifice my credit so I kept paying on time.  It was absolutely fustrating to see others being rewarded for not paying their mortgage but even then I would hear of the modification horror stories!.  My problem was always underwater mortgage.  At about 2013 or so, I noticed the principal started to noticeably start dropping while the value started slowly increasing but not to the point of meeting the LTV currently.  

[babbles]

Thanks, as you can see  a continued LTV issue!    So in 18 months or less, that 2nd will be paid off and I estimate the pay off of the remaining two liens would be about 163k or so but who knows what the market would do in that time frame.   So bottomline, refinancing a rental is tough If you don't have the numbers.

[me12345]

It looks like you are right on the cusp of an end to a long journey...

fine tune your comps, if you are at the high end of your estimate then you are ready to go!....also, remember, you are paying down principal every month, so if you are close it could only mean 6 months and not 18 months before you have enough equity.

Contact a helpful LOCAL Realtor that can give you a more exact idea of the property value...you may have completed your "Journey" already.

Thanks,

[babbles]

Thanks appreciate it!