I have been looking into doing my first deal for the past three months, had couple of options lined up and was relying on cashing out equity from my primary residence that I own outright. The problem is I got laid off yesterday (yaaaay!) so I immediately started looking into getting the home equity loan and starting my first deal. All of the lenders that I talked to said that I have to have steady employment to be able to cash out since their underwriting treats home equity loans as first mortgages in my case. I don't really want to start a job in the next 2-3 month so I can have time to fully focus on kick starting my real state investments. I don't have much of expenses and I can afford living off by driving for uber or doing some part time work. My last pay was 90k salary. And I have been working as an engineer for the past 10 years.
Are there any options for me to do the cash out with no employment?
Appreciate your suggestions.
Sami, sorry to say but you are probably out of luck. A home equity loan is easy to get when you don't need it, and tough to get when you do need it. You will need a full time job to get a traditional mortgage or line of credit against your home.
You are right spot on Peter, I never thought of that back then otherwise I would have got the loan and put it in an investment account that pays its interest until I am ready to invest. I have a question for you if you don't mind, I only have 450$ a month in car payments and credit card min payment with a balance below 15% utilization plus $600 home equity payment . According to my research a job that pays more that $2600 a month or $16 an hour would make my income to debt ratio at around the required 40%. Do lenders look at just the numbers or the type of job? I heard that your new job must be in the same line of work?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing