What is the Maximum Cash-Out Refinance on a Free and Clear SFR?

What is the Maximum Cash-Out Refinance on a Free and Clear SFR?

Real Estate Investor · Beaverton, OR · Member since 2010 · 6 posts · 1 vote

Does anyone have EXPERIENCE with the maximum amount of money they can pull out of a free and clear owner-occ SFR on a cash-out refinance? The house is in Bremerton WA worth about $250,000. Assume good debt-to-income and 740 credit score with a foreclosure in 2012.

If BiggerPockets allows, can you refer me to your lender.

0Reply
15 views

Most Popular Reply

Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
10y

@David Galan, I do not have direct experience w/ a cash-out refi, but I can tell you that per Fannie Mae, the most you can pull out for a cash-out refi on your primary residence is 80% LTV, and the most you can pull out for a cash-out refi on an investment property is 75% LTV. This is assuming you are refi'ing into a fixed rate mortgage.

Visit https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf for more information

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
    10y

    @David Galan, I do not have direct experience w/ a cash-out refi, but I can tell you that per Fannie Mae, the most you can pull out for a cash-out refi on your primary residence is 80% LTV, and the most you can pull out for a cash-out refi on an investment property is 75% LTV. This is assuming you are refi'ing into a fixed rate mortgage.

    Visit https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf for more information

  • Restaurants · Bellevue, WA · Member since 2015 · 55 posts · 10 votes
    10y

    70% approx

  • Real Estate Investor · Beaverton, OR · Member since 2010 · 6 posts · 1 vote
    10y

    Sorry, I should have specified that I am looking for a dollar amount.

    Can anyone share their EXPERIENCE on getting around $175,000 in a similar situation.  Are there special things or nuances the lender will scrutinize?

  • Loan Officer / Processor / Life & Health Agent · Rancho Cucamonga, CA · Member since 2014 · 1k+ posts · 757 votes
    10y

    @David Galan

    Since you had a foreclosure in 2012 conventional financing is out. FHA will allow 85% cash out and since this is O/O that dollar amount equals $212,500.00

    If it's free and clear VA won't allow you to cash out.

  • Investor · Arcadia, CA · Member since 2016 · 14 posts · 3 votes
    10y
    Originally posted by @Harry Metzinger:

    @David Galan, ...and the most you can pull out for a cash-out refi on an investment property is 75% LTV...

    Can you guys share some asset based lenders that have loan products for non-owner occupied investment SFRs?  I'm looking to refinance out of HM.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.