Homeowner · San Francisco, CA · Member since 2010 · 21 posts · 5 votes
Hi everyone. I recently purchased a property for $90K got a HELOC and spent it on rehabbing it. Now, my HELOC is tapped out, my FICO is doing down but the property is bringing in $2400/month and has been appraised at $155K. It's a multifamily property (duplex).
Should I refinance for another HELOC for about 100K or get a 30 year fixed?
Since my HELOC has been tapped, my FICO has dropped from 710 to 630. Because of this fluctuation, I haven't been able to get another property, since I can't qualify.
Any advice would be greatly appreciated. Thanks in advance for your time.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
Texas has crazy cash out refinance laws too. You should speak with a broker before you develop any grand plans.
I refinanced a property with a portfolio lender in Austin recently and they were 3 orders of magnitude easier to deal with than Fannie/Freddie lenders right now. The mortgage industry is still trying to digest all of the softball tax credit OO loans right now.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
With rates at historic lows (does that sound like an ad?), you should refi into a 30 year fixed. But you have two huge strikes against you:
1) Its difficult to get a mortgage with a 710 FICO, nearly impossible with a 630.
2) You need to own a property for a least a year before you can get a cash out refi.
You might try talking with brokers or lenders in the area of the property, but I think you're going to have a very tough time getting a good loan, or any loan.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
Texas has crazy cash out refinance laws too. You should speak with a broker before you develop any grand plans.
I refinanced a property with a portfolio lender in Austin recently and they were 3 orders of magnitude easier to deal with than Fannie/Freddie lenders right now. The mortgage industry is still trying to digest all of the softball tax credit OO loans right now.
Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
16y
I would look over your credit report very closely - your score dropping 80 points just for maxing out a HELOC doesn't sound right. I max out my 100K HELOC on occasion and have never seen my score fluctuate more than 20 points.