How to refi this?

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).

Great job at picking a rehabber.

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.

Here are the key items that need to be answered:

On your current residence:

  1. What is the market value of the property?
  2. How much do you owe on it excluding the HELOC?
  3. What type of 1st do you have on this property?

On your Fixer-upper:

  1. How much do you anticipate renting this out for?
  2. What type of mortgage do you have on this property?

Yes you can get a cash out REFI you have had this over 6 mo. you could have done this even if you just bought it.

You do need to answer the answer mans questions because that would help us out more to get you more specific answers instead of general ones.

Plus, I would like to know what your future plans and goals are because that you help me know how to help you with your future goals and plans

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

yeah, I like Psychic forum that is pretty funny ;D answerman that is great LOL

And don’t feel like that borrowers expect us to psychic all the time and to just to fix it and get them the loan that they dream of and expect.

Yes, lets get to the nitty gritty pdex