Hello! I'm not sure if I'm using the right term, but is it possible to "re-mortgage" a vacation house on conventional terms. Scenario: I purchase a vacation house and close paying cash in full. Turn around and mortgage the house taking out $200K (in cash) to use for other real estate investments. Would I be able to do a conventional, or would this be considered a HELOC? What are other loan options for this scenario so that I have cash on hand for RE investments. Getting confused with reading too much online. Vacation house in Pennsylvania. Thanks for your advice!
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
5y
You are looking for a cash out refinance (not a HELOC that's the name for a line of credit). You might be eligible to do a Fannie Mae or Freddie Mac delayed financing thus avoiding the cash out pricing add. The closing statement can't show a loan, a real person was the buyer with real funds and generally no more than six months passed. A great way to win in this very competitive market to get your offer accepted.
The short answer is yes, you can refinance a vacation or second home. There are several options that could be available to you conventional and non-conventional.
Hello! I'm not sure if I'm using the right term, but is it possible to "re-mortgage" a vacation house on conventional terms. Scenario: I purchase a vacation house and close paying cash in full. Turn around and mortgage the house taking out $200K (in cash) to use for other real estate investments. Would I be able to do a conventional, or would this be considered a HELOC? What are other loan options for this scenario so that I have cash on hand for RE investments. Getting confused with reading too much online. Vacation house in Pennsylvania. Thanks for your advice!
You should be able to refinance using the purchase price subject to ltv restrictions or go with a DSCR lender that may be able to use 75% of the appraised value at a slightly higher interest rate.