I own a townhouse in Charlotte, NC but have recently moved to Sarasota, FL for a job promotion. I work in wealth management. I would like to tap the equity in my home without selling and without going through a bank.
I am offering 10% interest for a $100,000 loan (negotiable terms). Current mortgage balance is around $191,000 and townhomes in my community/development are selling for $300-$330k currently. Charlotte is one of the hottest RE markets in the country. I am open to any and all advice on options I should pursue!
Right now your payoff amount is 63% LTV if value is 300k and 58% if 330k. A lender will let you refi cash out for 75% of value. 80% if 760 credit.
At 300k you’d get 225k in a loan. Payoff the 191 and pocket 34k. If 330k is value get a loan for 247k, payoff 191k and pocket 56k.
If your looking for a line of credit on the equity sitting in then house then ask your mortgage holder if they’d let you tap into it and how far would they let you go.
If value is 310k let’s say. You owe 191 and want to borrow another 100 and go to 291 in debt. That’s a 93.8% debt to value ratio. that’s how people get under water on a property. Not sure if a lender would want to find themselves there.
The DSCR 75% LTV loan scenarios I gave you are a possibility.