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Posted by Darrin Seppinni
September 28, 2021

Benefits of Using a No Doc Rental Loan To Refinance a Rental Property

Investors can see big benefits from refinancing into a No-income doc rental loan.

Not only can it lower your monthly payment, reduce your long-term interest costs, and free up funds for maintenance, repairs, and other expenses, but if you choose a cash-out option, you can even tap your home equity for a decent-sized lump sum payment. If you’re hoping to renovate a property or even buy your next investment, this can be a huge help.

Unfortunately, traditional refinances can be difficult to come by — at least for rental property investors. They call for lots of documentation, including items most investors just don’t have (W-2s, pay stubs, and 1099s). They also rely heavily on tax returns, which rarely show an investor’s true cash flow or earnings.

Are you looking to refinance your rental property? Not sure you’ll qualify or get favorable terms with a traditional refinance? A no-doc loan may be your best. These streamlined, low-interest loans require no income documentation and are designed just with real estate investors in mind.

Here’s what you need to know about our no-doc rental property refinances:

 
  1. No documentation is required. That means no tax documents, no pay stubs, and no W-2s. Instead, these loans qualify you based on your property (and its potential cash flow).
  2. Cash-outs are available fast. You can get a cash-out refinance on your rental property just three months into ownership. This is great if mortgage rates have fallen since you initially purchased the property.
  3. Your current appraised value is what matters. These refinances won’t use your original purchase price to gauge your equity stake. Instead, a new appraisal of the home — including any updates and repairs you’ve made — will be used, maximizing the amount you can tap via cash-out.
  4. Rates are low. Despite requiring no documentation, no-doc rental loans have rates as low as 3.875% on 30-year terms. This makes for an affordable, long-term financing solution for buy-and-hold investors.
  5. The title is flexible. Refinance the property using your individual name or an entity, including LLCs, corporations, and more.
  6. You don't need perfect credit. Rate-and-term refinances allow for credit scores as low as 640, while cash-outs and loans with interest-only options require a 680.
  7. There are multiple terms to choose from. Choose the term that fits your goals best. There are standard, 30-year terms, as well as 40-year loans with a 10-year interest-only period.
  8. You don't need a huge amount of equity. Loan-to-value maximums range from 75% to 80%, depending on your goal. With rate-and-term refinances, you need just 20% equity (on your new appraised value) to qualify.



    There are even no-DSCR refinances (no Debt Service Coverage Ratio) for investors in hot housing markets, where rents often lag property values. These loans allow for up to a 75% loan-to-value ratio with a 700-credit score or 70% with at least 680.

     

    Apply for your no-doc rental property loan today

    Are you ready to refinance your rental property or tap its equity to buy a new one? Don’t want to deal with the documentation or hassles that come with traditional financing? Get in touch with HomeLife today. Pre-approval on our no-doc refinance loans takes 24 hours or less.

    GET PRE-APPROVED NOW

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    Rental Property Real Estate Investment Loans - No Income Documentation

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    Questions?

    Click the live chat window on our site or call (888) 677-2526.  Our team is ready to assist you!

    About HomeLife Mortgage

    For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing.  HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Loans, Real Estate Investor Loans, and Bank Statement Loans.

     

     

Darrin Seppinni

Darrin Seppinni

Darrin Seppinni is a highly trained and experienced veteran of the mortgage lending industry. For more than 35 years, Darrin has leveraged his specialized knowledge and expertise to secure real estate financing for thousands of borrowers using leading edge mortgage loan products. He is proud to be at the forefront of alternative lending programs specializing in: Jumbo and Super Jumbo loans, self-employed bank statement loans (no tax returns needed to qualify); and investment property rental loans (stated income). Darrin is passionate about educating borrowers with unique needs on the benefits of non-traditional loan programs. Darrin is the author of, The Mortgage Originator Success Kit, published by Mc Graw Hill. Contact us to learn more.