Understanding Cash Out Refinance Loans | Stratton Equities USA
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WHAT IS A CASH OUT REFINANCE LOAN?

Harnessing Your Property's Equity for Financial Flexibility

Stratton Equities offers Cash Out Refinance Loans on Investment Properties for Nationwide Real Estate Investors.

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​Cash Out Refinance Loans and Hard Money Refinance Loans, are fast and flexible options for real estate investors looking to take equity from an existing investment property to reinvest the funds elsewhere. 

 

By utilizing a Cash Out Refinance Loan with Stratton Equities on a real estate investment property, Nationwide real estate investors can easily receive liquid funds within days. 

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Stratton Equities is a Direct Hard Money Lender, by working with Hard Money and NON-QM mortgage programs, we can fund asset-based loans, which can be utilized for purchase or cash-out refinance.

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What is a Cash Out Refinance Loan?

A Cash Out Refinance Loan is a type of term loan where the borrower can take cash out of their property from having equity and utilize the funds as they see fit. 

 

Unlike traditional loans from a bank, these types of loans are NO-DOC (no documentation program) loan programs and require no income verification when applying. 

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A Cash Out Refinance loan is considered a term loan, this loan is based on credit history and credit score, real estate investment experience, and liquid assets, which are then processed through underwriting. 

 

The relationship between the borrower and the private money lender is based on the loan agreement that the borrower can afford loan payments and will make them. This type of loan is ideal for self-employed borrowers or individuals without a regular income source. 

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While a cash-out loan can be risky due to the lack of regulation and higher rates, the flexibility and fast approval make them an ideal option for many real estate investors.

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Before utilizing private money or non-qualified mortgages, it is always recommended to speak to a private money lender with non-qualified mortgage experience to discover which loan program is right for your loan scenario.

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Before considering cash-out refinancing as a viable option, here are some items to consider:

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  • Borrowers must have enough equity in their investment property before applying for this type of mortgage program.

  • The loan will not be able to be closed without Homeowners Insurance, therefore the borrower must obtain it during loan processing.

  • A Cash Out Refinance loan is not a Home Equity Loan, it is a second mortgage, and it takes the first lien position

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To calculate your monthly payments on this type of private money loan program, visit our Mortgage Calculator to determine cash flow, homeowners insurance, and taxes.

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Real Estate Investors use a cash-out refinance loan on an investment property as a way to pull equity from an existing property. Real estate investors choose to refinance an investment property and/or a rental property for many reasons, for instance; to pull out equity to invest in a new opportunity, or to refinance to a lower interest rate, so they can pay off an existing loan that will soon become due. 

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At Stratton Equities, we also offer Private Money Cash Out Refinance Loans that are available to Real Estate Investors for multiple types of investment properties, including residential rental properties, multi-family, and commercial properties.

​Why is a Cash Out Refinance Loan a Great Option for Real Estate Investors?

A Cash Out Refinance Private Money Loan is ideally suited for real estate investors, as it requires no proof of income or tax documentation. Additionally, there is a fast approval process with non-qualified mortgages, making it well suited to the quick turn-around associated with real estate investing. It can be used for a variety of investment property types, including, Single-family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, and Warehouses. The loans can be up to 75% of value, with rates starting at 7.46%, and range in loan amounts from $75K – $5M.

 

There are Fixed-rate and Adjustable-rate options. Foreign Nationals are also eligible, making it ideal for real estate investors based outside of the United States as well.

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Applying for a Cash Out Refinance loan is a quick and simple process! Unlike a traditional loan through conventional financing, extensive documentation and little underwriting are required, making this a fast process ideal for investors with busy schedules.

 

These types of loan programs are considered NON-QM Loans (non-qualified mortgages), they are only available with direct private money & NON-QM lenders.

 

Contact Stratton Equities to apply today for loan approval! One of our top loan officers will be in contact with you within 24 hours! Find out more at www.strattonequities.com

Cash Out Refinance Loan Summary

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  • Investment Properties Only: Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse

  • Cash Out Refinance Loan Rates Starting at 7.46%

  • $100K – $5M

  • Up to 75% LTV

  • Blanket Loan Options Available

  • Fixed rates/Adjustable

  • 12 months, 5/1 ARM, 7/1 ARM, & 30 Year Fixed

  • Foreign Nationals Eligible

  • No Prepayment Penalty Option Available

Unlocking Investment Potential with Cash Out Refinance

At Stratton Equities, we're attuned to the potential that lies within investment properties. Our Cash Out Refinance loans are specifically designed for real estate investors, allowing them to tap into their property's equity for long-term financing at a fixed rate. Leverage our flexible solutions to amplify your investment strategies.

Transforming Equity into Liquid Assets with Stratton Equities

Navigating the real estate landscape requires innovative financing solutions. Stratton Equities' Cash Out Refinance loans are designed to offer real estate investors the chance to tap into the equity of their property, providing access to long-term financing at a fixed rate. With our tailored approach and flexible products, you can confidently meet your financial goals and make the most of your property's value.

What is a Cash Out Refinance Hard Money Loan?

A Stratton Equities Cash Out Refinance Hard Money Loan for Real Estate Investors for an investment property can be approved and funded as quickly as 21-35 days.

 

​​Real Estate Investors use private money lenders for cash-out refinance hard money loans for various reasons including; refinancing to a lower interest, short-term use only as most terms are 1-3 years, and because there are fewer restrictions than a conventional loan. 

 

​The differences between a Cash Out Refinance Loan and a Cash Out Refinance Hard Money Loan:

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  • Cash Out Refinance Hard Money Loan 

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  • Cash Out Refinance with a NO-DOC program

    • Term Loan

    • Rates Lower

    • Higher LTV

    • Lower Costs

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The Benefits of a Cash Out Refinance Loan

Regardless of the situation, Stratton Equities is able to provide a borrower with a cash out refinance on their investment property quickly and efficiently through our easy Loan Approval Process.

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Because Stratton Equities is a Nationwide Direct Private Money & NON-QM Lender, we are able to provide an array of cash out refinance loans and Hard Money refinance loans.

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Self employed borrowers and real estate investors benefit greatly from utilizing cash out refinance loans as they are not able to apply for traditional loans through conventional financing. 

 

If you are a real estate entrepreneur and the majority of your income comes from investing in properties or you’re looking for more privacy while applying for investment loans, a Cash Out Refinance loan might be the loan for you!

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These types loans are used by real estate investors and self employed borrowers as an alternative to traditional loans as they require less documentation from the borrower. Unlike qualified mortgages, with a NON-QM term loan, you do not need to present your pay stubs, employment letters, bank statements, and tax returns.

 

Once a loan scenario is submitted through our Application Process - our loan approvals and fundings are completed quickly, unlike a conventional mortgage through a bank.

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There are several benefits to refinancing your investment property with a direct private money lender including the ability to not worry about income verification, immediate cash flow, and the ability to finance other real estate investments or anything else. 

 

Unlike conventional loans, there are no limitations on what you can do with the money you take away from a refinance on an investment property.

 

Ready to move forward with a cash out refinance loan? Use our Mortgage Calculator to review your loan scenario and to see if refinancing your investment property can help your real estate investment goals.

 

Our cash out refinance loans for Real Estate Investors on a rental property or other investment property can be funded within 21-35 days if it's a bridge or hard money loan.  

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If you have a Loan Scenario and are ready to discuss your investment opportunity, Contact Us today!

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Cash Out Refinance Mortgage Loans for Real Estate Investors

Through an investment property refinance, a real estate investor can immediately receive the cash flow needed to fund repairs, pay off credit card debt or anything else they need.

 

There are several steps to refinance your investment property, here is how real estate investors can apply for a cash out refinance loan: 

 

Step 1: Borrower Documentation

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  • No Income Documentation Needed: A Cash Out Refinance with NO-DOC Loan Program does not require any income verification and has less guidelines and underwriting

  • Homeowners Insurance: The real estate investor must provide proof of Homeowners Insurance, this is needed to show the private lender that the borrower has enough coverage on the property to protect their investment. 

  • Asset Information: A Cash Out Refinance is an Asset Based Loan, therefore the lender will want to see copies of the borrower’s assets. 

 

Step 2: Loan Pre-Application Process

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To refinance an investment property,  a prospective borrower will need to find a private money lender that has NO-DOC, Stated Income, or No Income Verification Loan program. After you contact the lender, you can begin the application process for approval. 

 

Apply now with Stratton Equities and a loan officer will get back to you within 24 hours!

 

Step 3: Processing & Underwriting

 

When a prospective borrower’s application goes through the underwriting stage in the loan process, it goes through a review of the loan scenario and the borrower’s documentation. 

 

Once the application has met the underwriting criteria, the lender will schedule an appraiser to inspect the property.

 

As the loan proceeds, the loan officer will ask the borrower for additional documentation that relates to their real estate investing experience, cash availability, and credit. 

 

Step 4: Loan Closing

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After the underwriting phase concludes and all of the borrower’s applications as well as documentation have been approved, the loan will go into the closing and funding stage.

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Closings for refinances happen faster than conventional loans. Once everything is completed to the satisfaction of the underwriter and closing agent, the allocation of funds will be disbursed to the seller of the property or directly to the borrower.

 

Find out more about how to process a Cash Out Refinance Hard Money Loan.

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Ready to Finance Your Investment Properties?

Apply now. Our originations team is ready to work on your loan.
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