So I bought my new primary residence 2 months ago. I added several hundred square feet and would now like to tap the home equity. Is this something I can do right away, or do I need to wait until 6 months or 12 months? I've called a few conventional lenders and have been told that they can't use a new appraised value until more time has lapsed.
Is this the case for all normal lenders? I assume I can do a hard money loan without issue, but I'd like to avoid that if possible given how expensive they are.
I'm open to any loan product (HELOC, home equity loan, cash-out refi, etc).
@Jason T., yes, this is normal for lenders. Most insist on a 6-month "seasoning period" before they'll do a refi based on a new appraisal.
A HELOC is probably a better choice (depending on how you want to use the money). Many lenders will go 90% LTV or even higher, loan fees are very low, and you don't pay interest until you actually start using the money.
Downside is the rates are higher and shorter amortization. Best used for short-term financing.
The real question is how much value have you actually added? Talk to the agent you used when you bought the house and ask if they can pull some comps and offer an opinion.
We have Exclusive lenders in our system and they fund deals all the time. Their funds are higher so it depends on what you want to use the money for. In our system the money that can be made by purchasing more properties out weighs the higher interest and points. So it definitely makes a difference on what you are planning on using the funds for.