Which way would be better? Refinancing or a HELOC?
Im going to take a guess and say HELOC because with refinancing I would have to wait for interest rates to drop and my credit score to improve. Correct?
why not just talk to your landlord and tell them you are buying a home. give them a couple of months rent and opportunity to re-rent your unit. i would never give a landlord 8 months rent because they will just keep your security deposit and re-rent the property anyway.
It would have to be a HELOC- mortgage companies will not let you refinance using appraised value until you are on title for awhile. Most mortgage companies require a year, some require 6 months, and there are a few who will do 90 days. This is referred to as seasoning of title. Until you have the seasoning, the mortgage company will use the sales price as the value regardless of what the appraised value is.
71 is correct. It is ludacrous for your landlord to expect you to pay for 8 months of rent if you are not living in the property. I would negotiate a fair settlement and move. It is going to be difficult if not impossible for you to pull cash out of this property at closing as any conventional lender will use the lower of the sales price or the appraised value as the value of the property at closing.
I agree with Christopher W and 71tr depending on the condition of the premises, your landlord should cut you a deal on the remaining months. Good Luck!
By the way…what is the deal with this JohnnyQ character?
YES!
What kind of a response was that? I remember my first beer! :beer
Im dealing with a property management company and they where the ones who told me I would have to pay the remaining months on my lease to move out.
I will definitly get back in contact with them and see if I can negotiate a fair settlement to get out of my lease.
I would love to get into a home A.S.A.P mainly because its a buyers market out here in Las Vegas right now.
My main objective is to recieve cash back soon in any way to pay off my lease, put some in the bank, and invest the rest. The only way I know of is finding a home with equity already in it.
I now know refinancing is out the question because of seasoning issues.
Do you have a sublet allowance in your lease agreement?
If so, why not sublet the place out?
I must agree with the other posters in saying that you will be hard-pressed to find a lender that will allow for a no seasoning cash out refinance based upon a new appraised value (other then either the sales price or the or most recent appraisal).
Better yet, since it is a buyers market out here in Las Vegas and sellers are competing.
Hypothetically speaking, what if I found two houses in the same community and they both fit the same criteria. One is being sold for 30k more than the other. I approach the seller with the higher priced home and tell him that a house down the street similar to his is selling for 30k less but, i’ll purchase yours if you give me 30k or better yet 20k back.
Would this be legally possible or am i thinking to creative here?
Another option for you to consider would be to get a loan that has an interest abatement for a few months. This loan would allow you to finance up to 6 months of interest payments into your loan depending on the value of the property. This type of loan is A paper only meaning you must have great credit. It would not allow you to get money back at closing, but you will have more cash available for the first couple of months.