Cash out refinance on primary residence information
5 Replies
Gustavo Zamora
posted about 2 months ago
I currently have a FHA loan on my primary residence. I want to get the equity I have on the house to invest in a multi family. I need advice like can I qualify for another loan?
Evan Polaski
from Cincinnati, OH
replied about 2 months ago
@Gustavo Zamora , typically you need MORE than 20% equity to cash out refi or pull a home equity line. Sometimes you can find a lender that will go up to 90% but they are fewer and further between. Finding out is very easy: start calling banks and asking what they require, and you will quickly learn if you will qualify or not.
Tina Tsysh
New to Real Estate from Orange County, CA
replied about 2 months ago
If you are looking to purchase something that has 5 units or more, you can get a commercial loan which is sometimes easier to quality for.
If you are looking to purchase something under 5 units, you can get a conventional loan. If you are you going to stay living at your primary residence, you will have to put 20% down most likely if the new property is going to be your investment property.
As @Evan Polaski mentioned, you want to have more than 20% of equity in your home to get a refinance. How much equity do you have in the house and what size multifamily are you looking to buy?
Gustavo Zamora
replied about 2 months ago
@Evan Polaski Thank you for the information! I will be calling around first thing!
Gustavo Zamora
replied about 2 months ago
@Tina Tsysh Thank you for the reply! I have 82 thousand in equity, and I’m looking to purchase a duplex .
Tina Tsysh
New to Real Estate from Orange County, CA
replied about 2 months ago
@Gustavo Zamora that is a pretty good amount of equity if your home is $400,000 or less. If that's the case, I would do a refinance and put that money on your next investment. If you are looking for a duplex, I believe you can get an FHA loan if you plan to live on one side.