I have heard many people mention that they have avoided the 6 month seasoning period on a cash out refi.
Is your refi 70-75% of the ARV or purchase price?
Sorry I meant purchase price not LTV
If its within 6 month 70% of appraisal value but not more than of your purchase price. After 6 month 75% of appraisal value.
@Harjeet Bhatti so if it's within 6 months I wouldn't get my rehab costs back?
@ Rigo Ventura Delayed financing is only for those investors who spend cash or personal loan. So no.
@Harjeet Bhatti I was thinking more cash out refinance.
@Rigo Ventura did you purchase this home with cash? If yes you can cash out total amount which is on your CD. That can't be more than 70% of apprisal and not more than what you spend intially.
@Harjeet Bhatti no it's financed. Let's say I bought for 60, put 10 in and it appraises at 100. If I cash out refinance do I only get 60?
@Rigo Ventura You have to wait until 6 month pass to cash out on apprisal value.
@Rigo V. - to use your example:
Let's say I bought for 60, put 10 in and it appraises at 100. If I cash out refinance do I only get 60?
-Before six months, you could only cash out a maximum of $60K plus closing costs regardless of the appraised value.
-After six months you could cash out 70% of the appraisal value- $70K in your example. If the house appraised for $200K after six months, you could pull out $140K.
@Corby Goade I am assuming it's the same regardless of the lender type? Portfolio included?
A portfolio lender can do whatever they want with their money, they don't have to follow those regulations. However, most portfolio lenders work specifically with people who have good credit and solid equity but cannot get a traditional loan because they are over the standard 10- meaning, they generally use the exact same criteria mentioned above, but charge a higher interest rate simply because they can.
@Rigo V. I work with cash out refi's on a regular basis. Only requires a 30 day seasoning. Max LTV is 70% if owned less than 12 months. Give me a call or send me an email to discuss your options.
@Tim Fiedler Visio lending is a for real lender who has cashed out many of my clients were I provided the A and D .
so you will have to talk with them on terms and conditions but you need not worry that they are like many on BP that are total scammers trying to beat you out of 500 dollar due diligence fee.