I just aquired a property that was part of an estate sale. It is worth about 56k but I purchased it for 35k. It needs about 4k in repairs. I talked to one lender so far and he told me they could only do 80% of the sale price and not market value. He also told me that in order to refinance and take out equity I would have to wait 1 year. Is this standard? How would I be able to finance this at 80% of the market value to pull out the equity up front for repairs and profit???
It is going to be difficult to find a lender for a loan of that size. There are no-seasoning refinance lenders out there, but once again you are going to run into loan size issues. What type of documentation are you looking for?
I found a bank that would do the loan, 34300@80%=27440, 20yr 7.3%.
I was under the impression that the bank would give me 80% market value which would have allowed me to get some cash up front. Rookie mistake, they will carry 80% of whichever is lower, market v. vs purchase price. Maybe I could get an equity loan or line of credit unseasoned. Ya think?
There are conventional lenders that will allow you to an unseasoned cash-out up to 75% that I am aware of. There may be lenders that will go even higher than that. The problem is with the loan amount.