Non Owner Occ HELOC or 15/30 Mortgage < 5.5% w Private $?

6 Replies

Does anyone have experience with private lenders listed on the BP database that could

conform with the above scenario?

I have a single family house I bought with cash for 35k that fully reno'd has comps within 0.5 miles for 150k. I've put about 25 more into it of my own money and I'd like to pull it back out now that it is occupied and cash flowing. There are no liens attached since everything has been cash so far.

As I looked around it seemed like lenders often wanted to be over 100k on loan amounts or rates were higher than 7%, which I could beat in five minutes by just going to penfed and getting an unsecured personal loan.

So is there a holy grail lender out there that doesn't do hard credit pulls that can offer me a LOC or a fully amortized 15 or 30 year loan for 5.5% or less for an amount under 100k or am I just pipe dreaming?

Originally posted by @Brian Witherby :

Does anyone have experience with private lenders listed on the BP database that could

conform with the above scenario?

I have a single family house I bought with cash for 35k that fully reno'd has comps within 0.5 miles for 150k. I've put about 25 more into it of my own money and I'd like to pull it back out now that it is occupied and cash flowing. There are no liens attached since everything has been cash so far.

As I looked around it seemed like lenders often wanted to be over 100k on loan amounts or rates were higher than 7%, which I could beat in five minutes by just going to penfed and getting an unsecured personal loan.

So is there a holy grail lender out there that doesn't do hard credit pulls that can offer me a LOC or a fully amortized 15 or 30 year loan for 5.5% or less for an amount under 100k or am I just pipe dreaming?

 How long have you owned the property for?

Originally posted by @Brian Witherby :

@Shaun Weekes 11 months

Since you bought the home for cash and it's been over 6 months just do a cash out refinance with any Loan Officer or Broker that offers regular conforming loans.  

Also if you started renting the home out this year you'll be able to use 75% of the lease agreement towards your monthly income. 

I hope this all helps.

Originally posted by @Brian Witherby :

@Shaun Weekes what I was trying to achieve if reasonable rates existed was to not pay traditional mortgage underwriting expenses plus incur another hard pull on credit. It may be an unreasonable expectation I don't know...

If you want the best rates this would be your best option. Private money uses title and escrow as well so that expenses will be same in that regard. You might have some lender fees but if you can save $100 a month over a 24-month period approximately you'll re coup your costs.

The good thing is that you have options. A HELOC won't cost you much up front but that Interest Only payment for the first 10 years is a drag. Good Luck and PM me if you have additional questions.