Advice For Low LTV Refi on Investment Property

audioman00 — Wed, 28 Jul 2021 16:41:39 GMT

Hi All,

Two years ago my mom downsized after my dad passed away and turned their former primary into a rental property (in NJ), which is cash flow positive and has a $70k HELOC balance on it. It's currently variable 5.5%.

My goals are to a) get her into a lower, fixed rate loan b) keep her cash flow positive on the property c) let her pay down $25k in funeral cost loans owed to family members and d) get her a little extra cash padding for emergencies.

The property is worth ~ $1.1mm and brings in about $92k in rental income. My current best plan is to have her take a $125k mortgage and use it to pay off HELOC and funeral costs + $30k cash flow buffer. Ideally 20 year term or longer. Post closing she would have no other debt and ~15% - 20% DTI depending on term. Mortgage scores are 830, 825 and 817.

My two questions are:

1) Can you think of a better alternative than the above proposed plan? (willing to entertain non-conventional options like commerical mortgage, if applicable)

2) Do you have suggestions about which lenders are willing to do a cashout refi on an investment property with a 20 or 30 year term? Thus far her current bank and PNC have said no to doing anything. Navy said yes but at 15 year term.

Much appreciated!

Re: Advice For Low LTV Refi on Investment Property

Anonymous — Sun, 19 Dec 2021 23:27:48 GMT

People will tell you it's impossible, but most a lot of credit union offer equity loans on no primary residential loans, banks are a little more hit and miss. But not impossible

Re: Advice For Low LTV Refi on Investment Property

URHomeInvestments — Fri, 24 Dec 2021 18:17:25 GMT

Start with PenFed credit union. Quorum Federal Credit Union is a flexible HELOC lender.

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Advice For Low LTV Refi on Investment Property

Re: Advice For Low LTV Refi on Investment Property

Re: Advice For Low LTV Refi on Investment Property