Updated over 10 years ago on . Most recent reply
Refinancing A Cash Purchase
This is a pretty straight forward situation, I'm buying a SFH as a rental for pennies on the dollar in cash. I want to refinance it right away to cover rehab costs and pay back my PML, is this possible with out seasoning and if so what is the best way to do this? Additionally, how much does my personal credit score and financial picture factor into me getting a refi loan? Is a home equity line of credit better in this situation?
Most Popular Reply
Conventional lending requirements (Fannie Mae requirements) are currently 6 months to refi with a new appraisal, but you need to be able to justify the price increase. You can likely pull out 80% of the appraised value at that time. After 12 months, you can refi with a new appraisal without having the justify the price increase.
Portfolio lenders will likely allow you to refi up to 65-75% of the purchase price within that 6 months.