How to Refinance a Rental Property | FHA USDA VA Bank Investment Mortgages Wisconsin, Illinois, Colorado, Missouri Apply Now

  • News How to Refinance a Rental Property | FHA USDA VA Wisconsin

loan-mortgage-loans-low-rate-low-fee Loans Madison WI St Louis MO Denver CO Hannibal MO Online Loan Applications

Home » News » Home Buyers | How to Refinance a Rental Property ‪(970) 585-4546 | Refinance  |   | Tools | | Contact 

| Mortgage Loans CO - Estes Park, Denver | Mortgage Loan WI - Madison, Milwaukee | Mortgage Loans MO - Hannibal, O'Fallon

 Apply Now                   Loan Officers                    | Buy a Home                   Refinance 

How to Refinance a Rental Property

Home Buyers  \  February 17, 2015 10:00 am

How to Refinance a Rental Property

Today we will discuss three of the most common struggles that present themselves with a rental property refinance . Additionally, we will go over how to avoid these headaches from the start.

1. Equity
This can be the biggest problem facing borrowers. Because of the riskiness involved in owning more than one residential property, mortgage lenders usually like to see a "25% or more cushion in order to refinance a loan for a home that the owner does not live in. The reasoning behind this is that a borrower is far less likely to walk away from an investment where they have "skin in the game. So, 25% equity in the non-owner-occupied property you want to refinance is a good ballpark range. Also keep in mind that while lenders can be more lenient with credit scores and cash on hand, the industry rule here usually hovers near a 75% maximum loan-to-value ratio for the new mortgage loan.

Colorado Investment Rental Income Property Mortgage Loans2. Rental Income
Be prepared that some lenders are hesitant to recognize the full amount of rental income a borrower receives in their total debt to income evaluation. To avoid hassles here, speak with your preferred lender about this specific situation and always keep good documentations of rental payments from your renters. A solid year of payment history from a renter is a good start. Even better is to use a property management company to oversee your rental and make sure it stays occupied by long term rental agreements.

3. Multiple Mortgages

Often times mortgage lending companies will limit the number of mortgages one individual can have going at the same time. In certain cases, four mortgages on residential properties is the max, but it is always recommended that one speaks with their individual lender on this. Keep in mind that an individual can own 20+ residential properties and have only two mortgaged properties they are currently making payments on. According to the Four Mortgage Rule, they could possibly get two more residential property loans. The Four Mortgage Rule only applies to active mortgage loans running at the same time, not properties owned free and clear.

There are many things to discuss in regards to what options are available for homeowners and property investors who want to take advantage of the prime buying conditions right now. Give us a call here at Lendem Financial and speak with one of our Rental Refinance Specialists. We can get  you on the right path to a better rate in no time at all.


mortgage-refinance-rental-property-get-approved-home-Missouri Wisconsin Illinois Missouri ColoradoMortgage Lending Real Estate Knowledge Base 

Questions about buying or selling your existing home?  

Categories:  All | Choose a REALTOR | Working with a REALTOR | Buying | Selling Financial | Homeowners

 «  1 | 2 | 3 | 4 | 5   » 

Mortgage and Real Estate News Categories

Buyers |  | Conditions |  |  | Mortgages |  |  | Purchase |  |  | Realtor |  |  | Refinance

Home Financing Archive

August 2013 | September 2013 | October 2013 | November 2013 | December 2013 | January 2014 | February 2014 | July 2014 | August 2014 | September 2014 | October 2014 | November 2014 | December 2014 | January 2015 | February 2015 | March 2015 | April 3015 | May 2015 | June 2015 | July 2015 | August 2015 | September 2015 | October 2015 | November 2015 | December 2015  |  January 2016 | February 2016 | March 2016  

Real Estate Lending Options

Home Borrower Tools

How Much Can I Borrow? | Mortgage Calculator | Mortgage Rates | Forms

About Lendem Financial

Company | Senior Loan Originators

Home Purchase Loans in Madison and Milwaukee WI  

Mortgage Loans Springfield, Hannibal, St. Louis, MO

Purchase Real Estate Loans Denver, Boulder, CO

Google Maps: Mortgage Loans Madison WI | O'Fallon MO | Denver CO

Facebook: Mortgage Wisconsin | Mortgage Missouri | Mortgage Colorado

Apply Now              Buy a Home              Refinance

  ‪(970) 585-4546

Mortgage Loans Colorado Madison WI, Denver CO, St Louis MO | ‪(970) 585-4546 | Armenia WI, Baraboo WI, Beaver Dam WI, Beloit WI, Brooklyn WI, Columbus WI, Deforest WI, Dell Prairie WI, Dodgeville WI, Edgerton WI, Fitchburg WI, Fort Atkinson WI, Germantown WI, Green Bay WI, Green Lake WI, Janesville WI, Lacrosse WI, La Valle WI, Lake Delton WI, Lake Mills WI, Lodi WI, Madison WI, Mauston WI, Mazomanie WI, Merrimac WI, Middleton WI, Milton WI, Milwaukee WI Monroe WI, Montello WI, Mount Horeb WI, Necedah WI, Oregon WI, Platteville WI, Portage WI, Prairie Du Chien WI, Princeton WI, Reedsburg WI, Ripon WI, Rome WI, Spring Green WI, Stoughton WI, Sun Prairie WI, Tomah WI, Verona WI, Watertown WI, Waunakee WI, Windsor WI 

Questions about Lendem Financial mortgage loan options? Why you should think about using a mortgage broker vs a bank? Using a Mortgage Loan Officer that has access to all sources of lending institutiuons helps people get the best loan for their situation and offers all options on the market vs the programs at one bank. Call Todd Rubick of Lendem Financial and tell him why the bank said no... If your tax returns do not show your true income, or credit is less than perfect... Full service all source lending strategies will be offered for those that need them.