HML or other options for owner occupied SFH owned free and clear

I am having trouble getting cash out of a property that I picked up at sheriff’s sale last August. I am occupying the house, but have ran into several roadblocks along the way. First, my credit score is in the mid 600 range due to some credit card balances associated with the rehab of the property. Secondly, I own more than four properties and have talked w/ a lot of banks that aren’t doing loans with investors w/ more that four loans/properties. Lastly, the seasoning of this property is an issue with some banks as they will not allow me to use a new appraised value because it has been owned for less than 12 months. I do have sufficient income to meet debt to income thresholds and can support the income with two years of tax returns and current lease agreements. I really need to pull some cash out ASAP and did not want to go the route of a HML (not even sure if one will do it on a owner occupied), but am starting to run out of options. I have an FHA loan on one of my other places, so I can’t go that route. I just need some cash to pay down the credit cards and my score will jump to the low 700’s, which will then open up some more doors and get me a much better rate… Any ideas would be greatly appreciated!

You are talking to the wrong banks. Try a credit union in your town as most of them are portfolio lenders,meaning that they do not sell the loan on the open market. The other thing that I would try is to cultivate a good relationship with a good mortgage broker. I would also open my mouth to everyone that I thought that had money to do a private mortgage. You could give 7 or 8 % and some one that would like to double their return on a cd may do it.

Redhawk is correct. Conventional lending is going to preclude you from getting cash-out for at least 12 months. But a portfolio lender may be able to do something for you sooner than that.