if a property is being sold for 30k but its appraised value is 60k, would it be possible to finance the full 60k and pull out the rest of the cash through a lender??
if thats not possible through a lender, does anyone have any ideas about how that could be done, thanks
I don’t think you can do it in a single loan without going hard money which is a lot of points and high interest. Even then they typically only go 65-70% LTV unless you pay even more points and higher interest.
You should be able to buy and then get a home equity loan or line of credit after you own it. You’ll pay a higher rate on the home equity if you are going to 100% LTV, but you can do it with a high enough FICO.
Basically, if your credit score is high enough a good mortgage broker can do almost anything for you. Just find yourself a good one.
thanks
correct- on a purchase, the lesser of appraised value or sales price is what the lender will base the loan-to-value ratio on, and will only lend up to 100% of the lesser of these two values.
Yup, Also correct is the fact that you can draw a HELOC after you get into the home for some cash out. However, be prepared to explain the increase of value in such a short time.
Some States Allow 100% Cash OUT. If you are in the State that ALLOWS 100% , and your credit score is not below 580, and you are not in Forclosure it can be done.
Carol Wilson
Nationwide Loan Consultant
How soon can you do a HELOC and pull out money? I’m in Florida.
1 day
the heloc after one day would have horrible rates. 6 months in the home is the usual to get usual rates. You should buy the home and refinance is as soon as you own it. There are plenty of lenders that will refinance without any seasoning(time in the home). The problem you will run into with that is the rates will be high due to the small loan amount, but they will blow hard money lender rates out of the water. Then in the sixth month refinance again and get into conventional rates. Easy enough.
Actually there are a number of banks that don’t consider seasoning in their pricing…Just don’t expect a high LTV.