New to Real Estate · Apo, AP · Member since 2015 · 39 posts · 6 votes
Hello BP family,
Being new, I'm still in the process of getting everything to sink in and digest with all these methods of financing options and need some guidance.
My mom has a home (in her name only) and now she would like to add me as a co-owner to the home she currently lives in in Las Vegas.
The loan balance is now 80K and home is now worth 170K. I want to take out about 60K in equity (I have about 20K saved up) so that I can purchase more properties.
Given my situation, what would be the best financing method?
I would think cash-out refi would be my best option but then again I was also thinking of refinancing and then doing a home equity loan.
Can my mom and I instantly do a cash out refi even though I am not on the initial loan? or does it even matter?
Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes
10y
@Jace Im Just talk to a mortgage broker and find out what their lender requires. That said, is your mother on board with this? She's your mom, you know. Treat her with the utmost deference.
Investor · Las Vegas, NV · Member since 2015 · 5 posts · 1 vote
10y
Some banks are doing HELOC loans again. Usually there's no cost to apply and you won't have to go through a refi. This might be a good option that would be similar to a line of credit. You can qualify now and only take money as needed.
Jeff
Investor · Shawnee Mission, KS · Member since 2015 · 423 posts · 114 votes
10y
What is the rate on original Morgage?
HELOC could decrease your credit score as it would consider as revolving, in case if you will use it more that 50%. Refi with cash out, 30 years fix may give your better opportunities for a long run.
Brownstown, MI · Member since 2014 · 344 posts · 98 votes
10y
I took out a HELOC, which is interest only for 10 years. This is perfect for me as it lets me use and reuse the money to purchase, rehab, and do a cash out tegi and put all the money back into the HELOC. So I'm only paying juice when im using it. Just an option.