Line of Credit - What Percentage Refi Out?

Question

I am curious what the highest someone has been able to get in terms of the percentage of the value of the house with a conventional bank (not a hard money lender).

I am in NJ and someone told me (I did not verify this yet) Kearny Bank lent based on 110% of the value of this person's primary residence.

Let's hear what you have been able to acquire.

Boris Peyzner · Answer

.  Thanks.   I think my thread was poorly written.   I currently have 8 multi-family properties that I acquired from using cash to buy/fix/refi out to hard money to conventional construction loans,etc.

I'm well versed in the various ways I can structure investment property purcjase/fix/get my money out.

What I am looking to do now is leverage my primary residence as much as possible.  What I heard about Kearny above was because this person did very large amount of money banking with the bank.   Anyways, bottom line I wanted to see if any smaller local banks may lend something Crazy lol

Andrew Postell · Answer

@Boris Peyzner the rules for a primary home are different than an investment property.  Likewise if you are going to get cash out or not.  FHA 203k loans do have the ability to base the loan on 110% of the "After Repair Value"...but you will still be required to have your down payment amount, closing costs, etc.  And you cannot take cash out of that loan type.  Again, that is an FHA loan and not a conventional loan...and it's a rehab loan and not a cash out loan.

A conventional loan (a loan governed by Fannie Mae and Freddie Mac) can only do a cash out of your primary home to 80% "Loan to Value".  Hope this helps.