hi,
I just got my first prop by getting it on contract (24k purchase price, $300 down) and then refi’d for the appraised value. (44k)
I got an 85%ltv and pulled out 11.5k. Things I learned:
If you have less than outstanding credit, get it on
contract with no or low down, find a lender who will refi with no seasoning. This allows you to borrow against the appraised value. A straight purchase is against the
purchase price plus you have to come up with a big down
payment. You need to first call your lender and tell
them what you want to do. If they wont refi then look
around, maybe get a reputable mortgage broker working
for you too.
Posted by GREEKVESTOR on November 16, 1998 at 21:12:14:
Hello,
I thank you in anticipation to your comments.
Facts:
20 days ago I bought my vacation home for $54,000. The lender appraised it for $95,000 “as is”.
I need money to buy one more house nearby and rent-it-out. I found a lender that will give me a loan based on the appraised value of the home I purchased.
My dilemma is as to how to pull-out the money from the house? with an equity loan? or refi “cash out” loan?
Which will be the cheapest? what’s best?
Try talking to the owners to see if they will take a note instead.
Is a broker involved
How much $$ do they want – (need- inquire)
Find out what they need?
You need more info to get more help
Usually owner occupied 5yrs or more refi is better
short term, equity = which usually has a higher interest rate