Finding Banks who will do a No-Seasoned Refinance

I've made sure to bookmark this one.

Joe

Search for direct banks on the web that do all their business online (no branches); you can also search them under 'online banks'

These banks are especially helpful when you're doing out of state rei.

In addition to my initial post,,,,,
Here are some great questions that you can ask banks to help determine if they are going to be the ones that you will be working with.

10 Questions To Ask a Bank To Qualify Them and Refinance Quickly

- Do not give out your S.S.N.
- Use only your first name when you are introducing yourself.
- Avoid any “call backs”. If no one is available just tell him or her you will call back later.

1. Do you have any “in house” loan products?
2. If so: What are your “in house” loan products? Explain.
3. What are your seasoning requirements for refinancing?
4. If I bought a house last month and paid cash, can I refinance it this month?
5. What is your LTV (loan-to-value) on a refinance loan?
6. Are you refinance loans based on purchase price or appraisal price?
7. How quickly can you turn around a refinance loan?
8. What are your banks aggregate?
9. Do your “in house” loans get reported to the credit bureaus?
10. Does your bank count positive cashflow as income on my financial statement?

Thanks again to Matt Larson for these priceless Gems. I had to pass them on because they have helped me soooooo much.

Happy Investing!

Matt W.

Hi Matt,

Thank you so much for this great information. What I need to know is - what are the best answers to these questions that I'm going to be looking for?

1 What type of "in house" loan products are best?
2 What is the banks aggregate?
3 Do I want these loans reported to credit bureaus?
4 Is counting positive cash flow on my financial statement better?

I just want to be sure I'm getting the answers I need when I start calling around.
Thank you for any help.

Please forgive me if this is a stupid question:

In this post, are you referring to acquiring a property with maybe "Hard Money", and then refinancing through a local bank with little or no seasoning?

If so, I am so pleased that you have started this post because I have been pondering this question for the last couple of days and wondering if it is possible. I would really like to hear from you on whether this is what you are talking about in this post.

If not, sorry if I missed the mark...it wouldn't be the first time.

Regards,

Carl

Great thread!

Karen

I was glad you posted the questions to ask banks. I was wondering if you could answer a question for me, I have a brand new house that I still have after a break up (long story) but it is not finished and needs to be completed. I own it outright and owe nothing on it, but don't have the money to finish it. I work as an interior designer only part time due to the economy, but was wondering if in your opinion the banks would give me a mortgage to finish the house, maybe only like 15,000 or so??

I would appreciate any info anyone can give me. I am afraid they won't give me a loan because I don't make much money on the books, but if I could finish this house, I could be turniing a profit in either Vac rental, lease or selling it.....

Sincerely,

Christine

Here's the worksheet I created after listening to Dean in Las Vegas last month. I have been using it to find banks for no seasoning refi. Please copy, paste, print, and call!

Keep in mind not all banks/lenders are created equal and establishing a long term relationship with a small community bank, credit union or other type of money lender who understands your business model will take you a long way with financing your properties using OPM.

Also note if you have multiple residential loans on houses you may want to ask banks about refi them with a commercial loan.

Qualifying the Bank:

Bank name:_______________ _____________Contact name:_____________________________
Hello my name is __________I’m a real estate investor and wanted to talk to someone about getting a commercial loan on a residential property.
Repeat above once connected with the “right person” Then say I’m calling a few banks in the area and have a few questions to see if there is a good match.
Questions:
1.) Do you work with investors that live outside your lending area as long as the property is local? If no call next bank.
2.) What areas/cities will you currently lend to? Any you won’t?

3.) Do you have any “In house or portfolio loan products”? If yes, can you please explain….

OR ask do you keep your loans in house or are they sold to outside interests? You want “In HOUSE”
4.) What are you seasoning requirement on refinance loans? Terms, Interest rate, etc

• Ex: If I pay cash today….can I come to you in two weeks and get some money out?
• Ex: If I pay cash for a home last month, fix it up and rented it, can I refinance with you immediately?

5.) What is your loan to value on refinance loans? 70-80% is good.

6.) Are your refinance loans based on purchase price or appraisal value? Must be the appraised value

7.) What is your maximum lending limit (aggregate) per person?

8.) Do your in house loans get reported to the credit bureau? Not reported is best so it does not affect your credit by having multiple loans on rental props.

9.) What is the maximum lending limit you can personally approve without taking it to the board?

10.) How fast can you turn around most refinance loans?

11.) Tell me everything (documents: Ex: rental contract, proof of rental income, employment, bank statements, paystubs) you need to approve my loan: If it's a good match, email this info right away.

I just found a bank, well it is a credit union.

I have been searching for one in my area and i just found one. This is a success to me since it has been years in the making. The way I found them was a lead from another investor. They have used them and have been successful getting some amazing financing.

I went through matt's questions he posted and they are able to all of the above. They will do a 30 year commercial mortgage on my business. It isn't going to be reported on my personal credit. They will do a no season refi. Also they will do some creative stuff like allow seller carry backs on a second note as well.

I'm very excited to use them.

I love the comments that people are posting showing that this works!
The thing that is important to keep in mind is that traditionally it is going to be the smaller banks that we will be working with as we are looking to build up our business, and our credit. I love that Mikessler took the time to go through the questions individually with the bank. The questions are straight forward and progress one to another. Big Box Banks are generally not going to be the ones to work with as they have more lending restrictions and more people up the chain regulating them.
Keep working hard and making this work.
Thanks again.

Happy Investing!

Matt

What about when i did pull it up on yellowpages.com there was only three in my area that were small banks ...Now i called all three up and they said there is no such thing as a Commercial/Residential Dept.!...What then just ask for the loan manager?

Step 5. Call the bank and ask for someone in the mortgage department.

Just simply call the bank and ask to talk to someone in the mortgage department, or loan department for real estate. Always do everything you can to talk to the person she/he who is highest on the totem pole as possible. The other thing that I always do is make sure to say hi to the branch manager everytime I go to the bank. And I go to the bank as often as possible (sometimes just go there acting like I'm doing something) just to walk by the managers office and say hi. Likely if they are a manager, they have pretty good customer service skills, and they will be good at remembering names and faces after just a few visits. It's amazing what loans a branch manager can get to go through by them pulling strings for you. Relationships matter. Relationships make a difference. Make it happen!
Hope this helps.

Thanks,

Happy Investing!

Matt

Just Bookmarkeed this:)

Thanks!

This is very helpful to have a script like this..... right in front of you......Thank You....

Regards,
Sharon

1 We want mortgages or home loans
2 The aggregate is the most amount of money the bank will lend to one person. These banks usually do not have a number of loans they will do, they use the aggregate for your limits
3 We prefer that the loans do not get reported to the credit bureaus
4 We want the banks to count positive cash flow as it will increase or financial statement.

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