Have you had trouble selling off one of your investment properties?
Real estate is a great investment, but sometimes we can struggle to sell off our assets for fast cash. One of the best ways to ensure this is to refinance your property.
But how do you find a great refinance property rate? How do you ensure you succeed in refinancing property to sell at a later stage?
Here’s what you need to know about investment property refinance rates:
Table of Contents
1. You Need a Minimum Credit Score
Before you can even consider looking at refinancing property you want to check if you have the minimum credit score.
In most cases, 620 has to be your minimum credit score. However, some lenders will want a credit score of at least 700. There are some lenders who might go below 620, however, so don’t give up if you can’t meet this amount.
However, it’s always best to build a high credit score as much as you can. This opens you to even more lenders in the future. The higher your credit score, the more access you’ll have to better refinance property rates.
2. Loan-to-Value Ratios
You’ll likely have heard of loan-to-value ratios if you’ve worked in the real estate industry for a few years.
This outlines your eligibility for your cash-out refinance rates on your rental investment properties. In most cases, the loan-to-value ratio standards are set by Fannie Mae and Freddie Mac.
3. Cash-Out Refinancing
Now let’s look deeper into what cash-out refinancing is. These are a set of guidelines that determine whether you can quickly sell your investment property to get fast cash.
You want to have cash reserves. At best, you want to ensure you’ve paid your mortgage for at least 1 year. Or, you want to ensure that you’ve already paid for the rental property in full.
You’ll likely have to wait for at least six months to receive your approval for cash-out refinancing.
4. Assistance
As you’ve probably figured out so far, it’s rather difficult to find great investment property refinance rates. It’s hard to secure refinancing in the first place.
As a result, you want to look for a great real estate investor attorney. They’ll help you determine if you qualify for refinancing your property.
They can also help you if you have trouble with a mortgage payment. They can also help you secure a more favorable mortgage loan. With an attorney by your side, you’ll have an easier time finding the best investment property refinance rates.
Find the Best Investment Property Refinance Rates
Now you can secure the best investment property refinance rates if you follow the guidelines in this article.
You want to first ensure you meet the minimum credit score. While this isn’t a strict requirement, it does help to always have a high score to reach more potential lenders.
You want to also look at if you’re eligible for cash-out refinancing. Make sure you also understand the criteria for loan-to-value ratios. Always speak to an attorney to expedite the process.
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