Bought 1st fixer July 04, almost done, was planning on selling, but now considering holding for appreciation and minimal if any cash flow right now.
$100,000 mortgage on fixer, $70,000 HELOC on personal residence used to rehab, down payment…
Question #1: How would you handle this, given that I want to pay off my HELOC and rent out fixer (which could sell now for $220). I’ve heard that if I refinance before 1 year they won’t base LTV on current MV of $220. Is that true?
#2: Cash out for another investment: If I refi and want to take cash out for another investment, how does that work? LTV limits I assume, but can I just ask for %age on the $220, pay off existing loan and ‘pocket’ the rest? Do you actually get a check for it? :o
Yes, you can now refi and pull cash out. Some lenders will want you to document your rehab costs–to justify the increase in value to $220K (appraiser should also put in their appraisal). A lot of lenders only have 6 months to season to market value—you are past that now. Depending on your credit you should be able to go to 90% of $220,000 appraisal (some programs up to 100%–dependant on credit score).
I work with a broker in Dallas that can refi them in under 6 months. I have also used Countrywide to refi one I only owned for a month. They did ask for a written explanation of the work I had done but I had no problem getting the loan.
If you’re looking for general information, richmortgagebroker has already helped you.
But, if you want specific assistance with your problem, then I will need the answers to the questions I asked earlier. Otherwise, the solution might be the Psychic Forum. ;D