If I have duplex that I originally put 25% into, and after a year or even several years my equity has grown - are there options available that I would be able to cash out refinance to take some of the equity out to say, re-invest in another property? I am in Texas.
Yes there are in STl thy will typically allow you to refi at 70%LTV. I would call a couple of local banks and find a good mortgage broker. Also go to your local REI club and ask for referrals or professionals that are there.
Getting cash out through conventional lending is tough in TX. I know that Freddie will do 1 unit up to 80% LTV which doesn't really help you.
You would need to get a portfolio loan, private loan or HML loan. If you get the cash out this way you could do a rate and term refinance through all conventional channels up to 75% LTV.
I hope this helps and have a great day.
Shaun Weekes, Innovation Lending Solutions | [email protected] | 949‑610‑3126 | https://www.facebook.com/Innovation-Lending-Solutions-Inc-261955880814516/ | CA Agent # 0L51686
There are options as Shaun stated, but it might not be through conventional routes. It's more likely going to be through a portfolio lender or private entity (that's providing better terms than hard/private money).
Hope this helps. Feel free to contact.
Jared Rine, UWL | 2094810514
Texas has always been very protective of the homestead so financing rules are pretty strict.
My understanding is that you can only refinance up to 80% of the market value if you're looking for cash back. So let's say you have a property worth $100,000 and the principal balance is $50,000. You could only pull $30,000 cash out of the property.
Thought about HELOC or perhaps a Bridge Loan (if it's available in TX - I am not sure)
Just throwing some ideas out there...
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