LTV and Cash Out Refi on Duplex
Hello BP Community.
I purchased a duplex for $260,000, putting down 25% ($65,000) on a conventional loan (30-year fixed, 3.625%) of $195,000.
$56,000 of the $65,000 down payment was a HELOC on my primary residence. The remaining $9,000 was cash.
After rehabbing both units, I anticipate ARV to be about $370,000.
When in comes time to refinance, the principal balance on the loan will be about $192,500.
I understand the limit is 70% LTV for a cash-out refinance.
During the refi, will lenders take into consideration the fact that I used a HELOC for part of the down payment during the original acquisition? Will this affect the amount of equity I can cash out?