An Important Note About Refinancing Out of a Rehab Property

Investors that purchase non-owner / distressed assets with hard money must have a 620 FICO, be a full doc borrower and have strong assets and not a ton of debt to refinance out through Fannie Mae.  75% Loan-to-Value (LTV) rate term for Single Family Home (SFH) and for 2 unit non-owner and 70% LTV for 3-4 unit non-owner rate and term refinances.  Current non-owner rates are around 6% on a 30 year fixed loan. We have non-owner exit loan programs on credit scores down to 550 in some select states.

LTV is key and simply comes down to sold comps within ½ mile radius within the last 6 months. Fannie Mae allows you to have up to a total of 4-10 properties on your personal credit to refinance out from commercial rehab loans. Most of our affiliate companies bank loans so they have no seasoning. Brokered loans must be at 6 months in order to refinance out from rehab.

If you have a property picked out or under contract, please provide 3 or 4 sold comparable sales within a ½ mile radius within the last 6 months to justify TRUE market value.  We are not appraisers and do not give market value opinions or estimations, we simply provide the hard money.  The key to finding homes, fixing them, and selling them for profit is to buy low, rehab, and sell under true market value to owner occupied buyers.

In the current market, buyers want to know they got a good deal on a freshly rehabbed home or commercial property.  With historic low rates, and low down payments through FHA, now is the time to buy rehab and sell to owner occupied buyers.