We are looking to invest in the Houston area. We want to buy, then refi with cash out. I keep hearing 80 percent. I also keep hearing there are exceptions. NOO, homestead, etc. Does anyone have experience in Texas investment and what the truth is on cash outs there for NOO investment property.
I’m in Louisiana. Our business model is:
Buy low for cash
Refurb
Insert renter
Refi based on updated appraisal
We refi at 80% by choice to avoid PMI or a 2nd mortgage. After buying low and refurbing, we get 'most or all of our capital back to repeat the procedure. I can do as much as 100% refi with my lender based on my numbers and my credit but chose not to. I use Hibernia Mortgage. They lend in Texas, too.
Keith
There are no state laws that max investment properties out in TX at 80%. Many lenders choose to adopt that policy for compliance issues. The ones that dont have a cap treat those loans just like any others, no exceptions or higher rates needed.
You should contact a mortgage consultant that specializes in investment loans nationwide for further details.
Ben is correct.
For investment refi’s, with the right score, there are programs where you can pull out 100% of the equity(if you so choose). I hope this helps.
Excellent. If any of you could turn me on to some lenders who do the 95 and higher refi’s, I would be greatful.
On my current rehab, I agreed to pay 211K for the place. It appraised at $245. So I amended the contract and priced it at $240k. I 100% financed $240k and took the difference (after fees, etc) as a “repair allowance.” The check for the repair allowance was cut by the title company and made out to the general contractor at closing.
I ended up spending all that and more on the rehab. But I tell ya, I was tempted to put a match to it, take my $30k in insurance money as profit and sell the vacant lot. But I really didn’t want to go to jail, so I rehabbed it instead. ;D