Hi. I have something I want to run by the STL community. I live in South City. I live in a two family with the other unit rented. A friend of mine bought the property for me and need to get a loan to pay him back. My first idea was a HELOC but I also have been learning of a Loan to Value type of loan. I would like to get another property as i'm wanting to get a low end flip or an income property. How can I pay my friend back(50,000) and set myself up to get financing for another property in the next few months?? I guess a double loan situation. Any good experience with lenders??etc I own the home i live in free and clear. Thanks
Send me a PM and I will give you a referral to a loan officer. Your best bet will probably be a cash out refi. but talk with the loan broker to see what your option are. and post the results.
If you own your home free and clear a cash out, refi will get you the money to pay off your friend, depending on the value of your property. A HELOC may do the same thing but with a higher interest rate on the credit you tap into.
If you are going to buy another property and you do either of the above, it will be harder to qualify for another loan because you will now have your friend paid but will have a mortgage against your home.
Your income and credit rating may allow you to borrow to buy another property either through a conventional lender, hard money lender or private lender. Do a search of this site for borrowing methods.
Thank you, Sirs. I thought a Cash Out refinance was if you had an existing loan?? An officer from Pulaski told me I wanted to do a HELOC but it seems as though the interest rate would be higher eh?
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