Cash out free and clear homes?
I am buying HUD's for cash to hold and to lease/option. What is the current situation for cash out financing? What LTV's can I expect and who should I go to for these? Will appraisals be based on my purchase/rehab cost? I'm buying for 35-50% of tax appraisal.
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Most lenders are in the 6 – 12 month range for cash out refi’s that is why some with cash use a hard money lender – or have a third party hold a note/mortgage so you can do a rate and term refi.
Talk to your lender about the rate and term side of it as it may be worth having someone hold a note/mortgage on it for you.
Eddie – the banker I use is out of town till the end of month – but if you remind me I am happy to see what lenders she uses to get 6 months.
Either way – trying to predict the appraised value (let alone rules) 6-12 months down the road will be the biggest challenge – as Eddie mentioned.