Refi Primary Residence, No Seasoning Heloc??

Here is my situation:

I have a property that I am looking to buy for $15-20K. I will be paying cash for the purchase. The appraised value is more…a lot more. Based on comps, it should go to $50K to $75K. Yes, these numbers are verified. Now I know that all of you are thinking, Land contract, rent out or fix and flip…I do not want any of this! I would only want to hear what is realistic for getting the cash out.

Subprime, no seasoning, (under a month) heloc or refi? 652 Credit score and simply looking for cash! I don’t care about points and fees. I am looking to strip the equity for other real estate investments
Where and who would you recommend? Ditech? Ameriquest? Is this possible to do? Is this a 65% situation or 125% situation. Also, I will be living in this property as it will be my primary residence for the next year or so. The property is also located in Ohio.

Any advice concerning this financing situation would be gratefully appreciated. If there are any loan brokers on here that would like to assist in this process, please let me know.

Oh…and the property is located in Ohio.

Thanks again for your assistance!

Check around with brokers in your area. There are lenders that will do 100% refi on NOO properties on a refi with full doc. A retail branch of National City will do up to 89.9% on a HELOC for NOO properties with no title seasoning, but maybe a bit lower with that credit score. If you find a broker that has National City products, I think they will do 95% HELOC.

Thank you for your response…one other thing I forgot to mention is that this will be my primary residence for a while. It will be owner occupied.
Does that change things?

Yes, owner-occupied properties will get a higher LTV on your loan or LOC, and a better interest rate. So, that’s even better for you.

I used the following model for investments:

(1) Buy property for cash/close in a week…negotiate the best deal possible (naturally!)

(2) Complete repairs, rehab, fix-ups

(3) Put a renter in at the high end of market rate.

(4) Do a cash-out refi to get all/most of my cash back out.

I was paying about .50 - .75% higher rate than I could get for a O/O loan…I have exceptional credit though. You might pay a little more for your rate. Check around.


The loan does not need to be subprime, anyway you’ll find it hard for any subprime lender to do cash out with no seasoning less than 6 months.

Whether this was owner occ or non owner would not matter. There are several lenders that can do this with the score you have given. 80-90% ltv

The biggest obstical I can see is that the loan amounts are going to be smaller. Most mortgage brokers will not do loans that small because there’s no room for them to be compensated. Most wholesale lenders that brokers deal with have a 5% max fee (of the loan amount) limit that can be charged to a client.

With an appraisal of $75,000 and loan at 80% = $60,000, you’d be right about at the lower end.

Your overall scenario should be ok, it’s just finding a broker who knows investment loans and can work with you on the lower amounts.