I have a primary residence I rented out for a few years after living there and have recently moved back into at least for now. I'm considering cash out refinancing while I'm still living there to get some cash out. I will either rent the place back out after I move out or sell it.
Is there an appraisal when doing a CO refinance? What about a home inspection?
Appraisal yes, inspection typically no.
@Chris Mason is on point.
Keep in mind that if you do a conforming owner occupied type loan you will be required to live there for a period of time before renting it out. So, if you plan to rent it right away, you might want to consider a commercial mortgage.
@Chris Mason and @Kevin Sobilo are both correct. One more thing to consider though. It would be fraudulent to obtain an owner occupied loan with that low rate and immediately rent it out however you can't go the commercial lending route without a tenant lined up.
Before you do your cash out refi you need to decide whether your going to rent and sell.
1. Sell - Great, go do a cash out refi at your local bank first.
2. Rent- Get a tenant lined up now (even if its a written agreement of a future lease), find yourself a new place to stay, then pursue the cash out refi with a commercial lender/broker (me :) )
No need for a commercial mortgage if you own the house and are going to rent it out.
You can still do a conventional Freddie/Fannie type loan, but as an investment property will add 0.5-1.0% onto the rate.
Appraisal will most likely be required. No inspection. (Some mortgage companies may require a wood destroying insect inspection/report, though I have t run into one yet)
appraisal is likely to be needed …..cost approx. $500-$700 ...there is something called a PIW that might allow you to forgo the appraisal need ..lender will be able to determine if this PIW is an option once they run your loan file throught their automated underwriting system …..( normally on cash out refinances these PIW are not available ) ...we are in Seattle if you need any help :)