Cash out refy reality

5 Replies

I am buying a duplex for 74k that supposedly appraises for 119k. I'm currently waiting on appraisal results. I want to get it ready for renting and refy ASAP.

Here is my question. Is there a law that limits how soon a lender can give me a loan and therefore I can get my money back out?

I hear people say six months to a year. I would think banks would love lending 60 or 70% loans.

There's a search function for the forums. Use that. This question has been beaten to death. 

Short answer with commercial financing,  banks have more flexibility, and yes it can be done, but many wouldn't want to. 
On the residential side (long term fixed rate loans sold to fannie, freddie), there is a 6-12 month period in which they can only loan on the lesser of the purchase price or the current appraisal value. 

@Reggie Maggard you can do a low doc commercial loan cash out on the property up to 75% of fair market value. No seasoning requirements. So you can recap on you money. Let me know if you have an questions.

@Reggie Maggard you can certainly do a delayed financing loan prior to 6 months with some lenders. Otherwise, as you were told(most likely by a conventional lender) you will have to wait to do a cash out refi. In order for banks to do a delayed finance loan with you, you will have to purchase the property in cash. Most banks will allow you to use hard money and or private money as long as you can show the rate and terms agreement of either the private money lender or HML.

Under 6 months you can do a cash out refinance based on the purchase price. If you want it based on a different amount you need to wait 6 months to have a new appraisal done. The appraisal amount for the purchase has no bearing, just the purchase price.

Hey thanks a ton. It sounds like i just need to find a bank to do a commercial loan on it as soon as i do my all cash closing.

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