Commercial Lender with 100% LTV

[Raj Tirur]

Does anyone know of a commercial lender in MA that will let you cash out re-fi with 100% of what the current market value of the home is?I am seeing 75%-80% in a lot of places.Example:

Market Price: 300K

Purchase Price: 260K

With 25% down current loan left is: 195K

I’d like to cash out with the market being as close to 300K as possible.With 75%, that will be 225K leaving me only cashing out 30K.

Thanks in advance for any help you may have!

Raj

[Michael Seeker]

Since I'm not in MA I can't help with a specific lender.  I can comment about what you're looking for in general though...

In today's lending environment you most likely won't find what you're looking for.  If you can find a lender that will do that type of loan, you should expect higher than normal closing costs, higher interest rate or both.  Most lenders require 6-12 months of seasoning - if you can find one that will work with 6 months then you're in great shape.  Unless you're willing to pay a lot more in monthly payments (think 8-10% interest rate or more) and/or pay a lot more up front you're not going to find somebody interested in this.

A lot of banks got burnt during the downturn and they're not interested in making loans where the borrower doesn't have 20%+ skin in the game.  After you've held it for a while your options start to increase.