I bought this duplex property 4 yrs ago for 10k through a hard money lender. The property value is about 50k now. I currently have a tenant in the unit and I would like to pull equity out of the property and pay the hard money lender off and buy another investment property next door. My scores are mid 600's what would be my best options. Also, I have never had an actually mortgage through a bank reporting on my CRA. I also saved enough money for a down payment on my first home that I would like to live in. I live in Texas. What would be my best options and steps to meet all my goals?
You need to use credit to grow credit, so I would pull the trigger on refinancing the duplex, purchasing your first home, or both as soon as you can and work towards the rest.
Have you picked out the house you want to live in? If not, do any Homepath properties fit your criteria? Try to get in with as little down as possible to conserve cash for your second rental. In a few years see if you qualify for a second mortgage as a line of credit - take money out when you need it for rental activity, pay it down when you don't.
You'll need an appraisal of the duplex to refinance it, try to get as much cash out of it as you can. But watch the fees, refis can get so spendy that they aren't worth it.
I'd find three banks (large, local, and a third choice), share what you are trying to do, and see who can get you the closest. They will care about your net worth and income in addiiton to credit score.
I wanted to go through CitiBank since they have already pre- approved me and also has a program that waives all appraisal fees and etc fees, with my FHA loan personal home . 2nd NFCU will refinance my investment duplex.But I really need to get the equity money out of the property to help with my downpayment The equity should be 25,000 to 31,000 in Texas. What is the best way to pull this cash out so i can use some form my first lived in home and my second duplex 3rd I'm scheduled to look at the adjourning duplex in which has a tenant there. Any suggestion would be appreciated. I going through a hard money lender
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