I need some help trying to find a cashout refinance loan. We just purchased a 3 unit ( 2 homes on one deed) property in feb. Our loan is fha so trying to refinance we would need to wait a year to use a new apprasial. They will only use 85% of the home purchase price since its the lowest value . We owe about 187,000 and appraisal shows 375,000 Property is worth about 560,000 after fixed up. I am looking to get 100,000 to fix up both homes. Looking to keep the property for at the least 5 years so not looking to flip it. I tried local banks with no luck. does anyone on here know of anyone or do any of you offer a loan that I described? Any help will be appreciated.
HML is probably the only way
What about a second lien? Try and get a small loan for just the repairs.
The one home is a 2 unit thats rented out. We live in the other single unit home. I dont need to make any repairs to keep things going. I want to get the money to completely remodel both properties. I did try for a second mortgage with tdbank but they didnt like the fact its worth much more then we paid for it. They couldnt understand it. I will look more into the hml. Thanks for the replies.
Hi
The loan that you want is an FHA 203K. This loan will allow you to refinance the existing and get cash to remodel. You have a 6 month widnow to get that done, but you can get extensions if needed. You must have a licensed, bonded contractor do the work, but you can cut a deal with them if you want to do some of the work yourself. You would then be basically a sub under them, but they are responsible for the final product, so they will tend to be cautious.
You can get up to 50% of the ARV (after remodel value) as the the cash amount limitation over an above the existing payoff.
Example - you owe 185K, the ARV is 500K, you can get a max of 250K for remodel, and 187K for existing payoff, so a total of 435K. You can not exceed 97.75% of ARV as a max. loan, and you have loan size limits based on the county the property is in.
Sorry, I didnt look at all your numbers. Let me redo the calcs based on the numbers you showed.
You owe 187K, you want an additional 100K, for a total loan amount of 287K, this wont be a problem if the property is currently appraising for a minimum of 307,000 or higher. Thats to say that your loan amount will be 300K with closing costs, so that divided by a max. LTV of 97.75% = 307K roughly as the min. appraisal amount required to make this deal work.
There are 2 other components that you must be within guidelines on, and that is debt ratio at a max of 50% and you must also check the max FHA loan limits based on the county that the property resides in.
Just let us know the county and I will let you know the max. FHA loan limist based on a Triplex, or 3 unit type set up. Oh and I would also need to check to see if FHA has an issue that its a SFR (single family residence) and a 2 unit all on the same property.
Let me know and I will get those questions anwsered for you.
Kevin
Kevin,
You are not taking into account the FHA maximum loan amounts. If he is not in a high balance loan area then he would most likely not be able to get 287K.
Chris
You might want to read my whole post. See Below
Just let us know the county and I will let you know the max. FHA loan limist based on a Triplex, or 3 unit type set up. Oh and I would also need to check to see if FHA has an issue that its a SFR (single family residence) and a 2 unit all on the same property.
Your right. Sorry bro.
Not to beat this horse to death, but I happen to live in one of the counties that has the lowest loan limits in the country, and I ran it for my county and the FHA loan limit on a 3 unit property which this would be deemed, is $419,425.00
So I have got to believe that the roughly 300K he needs will be more than do-able.
Kevin