Another interesting side note, as we go further and further down the road of tightening credit.
Tonight I was told by a very good lender that we have done a lot of deals that no longer will a property owner be able to refi a property and pull equity out unless they have owned the property for over two years. Yes you heard me correctly two years.
Gone are six months, and then a refi. Lenders want to know what someone paid for the property and that is still going to be the value unless they have done a great deal of changes to the property to help increase the income. But wait...
The increased income has to be stabilized for at least three years before they can count the new source of income. So PGI (Potential Gross Income) will not be taken into consideration anymore.
Oh wait, there 's still more. The lenders do not want to repay anyone for improvements that they made to the property even when it results in increased income.
So if I sound a little bit sarcastic tonight I'm not, I just want to report exactly what is occurring out there so clients and friends know exactly what is going on.
Yes we still can do loans, There are boutique local lenders that we can still entice with good deals. For more on this visit loanforbiz.
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