Posted by rick on October 22, 2001 at 17:21:40:
let it go BILL lighten up Ron was trying to help get with the program where here to help each other get real Bill take a chill pill.
How to obtain cash from equity in a rental prop. - Posted by Ryan
Posted by Ryan on October 18, 2001 at 13:55:10:
I was wondering if there is a “best” way to withdraw cash from a rental property that I own without paying an arm and a leg for it. I’ve looked into doing a refi, but it looks like I’ll be hit pretty hard with a higher interest rate, and more points. My present interest rate is a 30 yr fixed 7% FHA Loan, and I was hoping to get a loan for 80% LTV because I need the cash. Can a home equity loan be done on a non-owner occupied property? I’m also open to any other creative suggestions.
Try Wells Fargo Financial - Posted by KC Questions
Posted by KC Questions on October 19, 2001 at 10:20:54:
Wells Fargo Financial did a 10 year, 70% ltv, 8.25% interest, interest only payments, line of credit on my second home which I used as a rental. They took care of me when noone else could help. You should give them a call.
Re: How to obtain cash from equity in a rental? - Posted by Ed Garcia
Posted by Ed Garcia on October 19, 2001 at 10:02:01:
Ryan,
We would need more information before we could answer your question.
First of all we don’t know how long you’ve owned the property?
You mention that the lenders are quoting you a higher rate then the 7% you’re paying, so that tells me that either you have a credit problem, or a budget problem.
Ryan, if you have owned the property more than a year, have good credit, and can qualify for a Fannie Mae/ Freddie Mac loan. You should be able to get a loan at 80% LTV at around 7 to 7.25% fixed and 2 points.
Ed Garcia
Re: How to obtain cash - Posted by AL
Posted by AL on October 19, 2001 at 09:57:38:
I just refinanced my rental for 70% LV and lowered the interest rate and monthly payments with ditech.com (subsidiary of GMAC). You might see what they can do for you. AL
Re: How to obtain cash from equity in a rental? - Posted by Ronald * Starr
Posted by Ronald * Starr on October 18, 2001 at 19:51:42:
Ryan------------
I think you might be able to get a second loan on the rental property from an institutional lender. If you have enough equity to provide a security cushion, that is. Have you asked around? You might want to call a couple of mortgage brokers in your area and ask them.
Good Investing***Ron Starr
Re: How to obtain cash … - Posted by Alicia Sierra
Posted by Alicia Sierra on October 18, 2001 at 14:57:24:
Hello,
There are no home equity loans on n/o/o to the best of my knowledge. However, some banks will use your property as “double” collateral up to 80% or 85% LTV.
For eg., I have bought rental property with no money down with the bank securing the loan against the other property’s equity for the same amount.
Good Luck,
Alicia Sierra
Loan Officer/Investor Metro St. Louis
Re: How to obtain cash from equity in a rental? - Posted by Bill
Posted by Bill on October 19, 2001 at 14:54:25:
Ron, did you read the question? He said that he HAS checked around and is having trouble getting the loan refinanced without incurring exorbitant costs.
If an institutional lender, (Bank, S&L etc.) isnt willing to do a refi of the first without a pretty penny in costs, then they wont do a 2nd any cheaper, if at all. Most of them tend to be extremly conservative in their lending policies for NOO properties.
Did you even read Alicia’s post before you responded?
Ron, your last bit of advise about calling a mortgage broker is reasonable.
Once again, If you dont have a knowledgeable answer to someones question, then stand down and let someone who does know the answer respond. I mean, what kind of an answer is, "I think you better call around and ask a few people? Hell, I know that without asking anyone.