2 questions Can I refinance a Private Loan , and do I need good credit

3 Replies

Ok I am buying a 2 unit for 60,000 it needs 30,000 in rehab, and I'm going to live in one side and rent the other side out, Can I refinance a private loan and refinance with a cash out refinace after 3-6 months, if so please tell me the process? Also do i need good credit to do a cash out refinance ,and if i do what is the required or suggested credit score I have. And also If you know of any good Mortgage lenders in Illinois please refer them to me thanks!

Give Mike Plating a call as he is an excellent Illinois mortgage broker that has helped me with numerous deals, he should be able to answer all your questions

http://theplatingteam.com

Originally posted by @Anthony Kondor :

Ok I am buying a 2 unit for 60,000 it needs 30,000 in rehab, and I'm going to live in one side and rent the other side out, Can I refinance a private loan and refinance with a cash out refinace after 3-6 months, if so please tell me the process? Also do i need good credit to do a cash out refinance ,and if i do what is the required or suggested credit score I have. And also If you know of any good Mortgage lenders in Illinois please refer them to me thanks!

 Hey Anthony, 

Short answer is yes. Re-finance is simply acquiring a loan to pay off a previous loan, generally this is done to reduce rate. For example if you pay off 1 credit card with a new credit card with a lower rate, you are re-financing your credit card debt. The same would be true if you took out a personal loan from a bank to pay off credit cards, you are simply finding another source of financing to pay off the prior debt.

If you're looking for the process for your specific situation, I am literally no help at all, haha! The good news is there are tons of very helpful people here on BP and I'm sure one of them will be along shortly to explain it.

Good luck!

@Anthony Kondor

Yes you can refinance a private mortgage and cash out if the equity is there. Your credit score has to be a minimum of 620 if this is mortgage 1-4. You can cash out after 6 months based on appraised value. You can not cash out prior to 6 months if you get a private mortgage - as any mortgage disqualifies you from the delayed financing exception. 

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