This is my first re-fi and it is on a duplex. Bought 1 year ago with conventional financing and utilized a LOC to rehab. Bank told me that a re-fi will be based on the appraised value, not the loan or purchase price (when I asked about this a year ago). So the one year mark is up and I'm talking with the same banker and now she said something along the lines of they will re-fi based on the value of the LOC and conventional loan. So I asked about the re-fi based on the appraised value and her response...
"What would the remaining fund be used for"
I plan to use for continued investment into the business to buy more properties, but I'm not sure that is the answer she or the underwriter is looking for.
Any help is greatly appreciated!
@Tyler Watts Be careful how you answer because if you lie, you could be in serious legal trouble. Be honest with your intentions and they could have a better option for your needs. They make money from each loan they do so they want to give out loans.
@Jeremy Pakalka thanks for the feedback and yes I plan to be 100% honest. So I after speaking to some other investors I had a concrete answer and that was to pay back the individuals who personally put money into the deal. So the LOC did not cover all rehab cost, resulting in personal money being put into the deal to finish. So the additional funds would pay back some of the funds that were put in.
To Whom it May Concern,
I am pulling equity out of this property to consolidate debt, improve the subject property, and have funds available should another real estate opportunity present itself. I am not presently in escrow for any other property.
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