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Refi

I have an income property in Eagle Rock, Los Angeles (90041). The first is $376,000 (4.5%) and the second is $90,000.00 (6.5%). The SFR zillows for $507,000.00. I think it will appraise for $515,000.00. Can any lender refi these loans into one or possibly refi the first with the second subordinated? I have been told this will not work with Fannie guidelines. These loans are not Fannie or Freddie loans. Thanks! by regisg_613_831 from Los Angeles, California. Oct 9th 2012 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,707 contributions

Under conventional guidelines, you need to be at 80% LTV / CLTV to refinance... there is no conventional, conforming loan product out there that will allow an investment property to do a cash out refinance at 90% LTV. (Combining a first and 2nd mortgage under conventional is considered a "Cash Out" refinance)... Even going to your existing lender will not help.. and 4.5% is really not a bad rate for an investment property... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Oct 9th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,823 contributions

Because this is investment property, you are looking at a maximum LTV of 75% with most lenders. Although you could probably find a local community bank or credit union, that might go higher, they will probably charge you a higher rate. Until your property value climbs higher, or your balance is paid down to get you to at least 80% LTV, I doubt you will find a better deal than what you already have. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Oct 9th 2012
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Jean-Michel Goupillaud (goup0148)
#679 ranked lender in California - 4 contributions

Have you tried contacting your existing lender to see what options may be available with them?

Oct 9th 2012
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