Refinancing - Posted by Deb Van

Posted by Ben Carmona on May 05, 2007 at 09:43:06:

Only available through a wholesale lender that we use as mortgage brokers. No specific name. Only a couple that I know of offer this.

Ben Carmona

Refinancing - Posted by Deb Van

Posted by Deb Van on May 04, 2007 at 11:41:51:

Hi all!
I checked the archives on this issue but most are not there anymore.
I plan to purchase small rehabs and then rent them out for cashflow. The properties I’m interested in are listed on an auction website and they state “no financing” which I think means you must pay cash. My question is , for example, say I purchase a 30K home for 10K and want to pull out cash for minor rehab. How can I refinance to pull out cash when I paid cash? I really don’t want to take out an equity loan. Also, how long do you have to have the property before you can refinance?
I appreciate everyone’s help and answer when you can.

Re: Refinancing - Posted by Ben Carmona

Posted by Ben Carmona on May 05, 2007 at 01:05:32:

If your credit scores are high enough you should be able to cash out immediately after purchasing the property and also use the new value to determine ltv. One of the problems you may run into is the lowere loan amounts. The mortgage professionals that you need to get these loans done (direct lenders dont offer the program) usually require a minimum loan amount of $50,000. So if the 80% worked, minimum arv would be $62,500.

There is one program that I know of that may work with a minimum loan amount $35,000. This program allows you to use the new value of the property to determine ltv but only allows you to get back the cash that was paid at purchase. (you must have paid for the property entirely - no loans). The refinance has to happen within 90 days of the purchase and you have to show proof that the purchase funds came from your own seasoned funds. (heloc, retirement, banking accounts…etc) The rate is based off a rate/term refi rather than a cash out loan too.

Ben Carmona

Re: Refinancing - Posted by Deb

Posted by Deb on May 05, 2007 at 09:31:13:

Hi Ben,
Does the program that would work with a loan
@35K have a specific name? Do I go to secondary lenders to find this type of program?
Thanks Ben!