Posted by Brian on October 18, 2003 at 12:42:05:
Just a suggestion. Instead of asking for cash out, ask the lender if they would consider using part of the mortgage proceeds to pay off your hard money lender and your credit cards (i.e., they cut the checks directly to them). This reassures them that the money will indeed be used to reduce your debt and strengthen your credit. If I were you, I would not ask for cash for yourself at this point. The most important thing here is to reduce your debt and strengthen your credit and once you are a homeowner with equity in your home, borrowing becomes much easier. Assuming you have equity in the property because you purchased and rehabbed correctly, you could go back to this lender (or another lender) at some point in the future and apply for a home equity line of credit. Be very careful and NEVER use the equity line for depreciating consumer items! Good luck.