All Forum Posts by: Jason Wray

Sometimes the best way to maximize cash out is to do a 80% LTV cash out refinance and then take out a HELOC for the other 15% CLTV not LTV.

Unless the home is free and clear in that case you should still do the cash out refinance for the 30 year fixed payment benefit and avoid prepayment penalties if any on most HELOCS> Just remember a HELOC is a debt obligation not an asset and cannot be used as a liquid or PITI reserve on any new investment purchase.

Let me know if you hit a road block I can suggest some options.

Daniel,

Most banks offer a 10% down program for second homes if you cannot find one feel free to send me an email.

Miles,

why do you need a Hard money or private lender versus a Bank?  Are you trying to buy a property that is "Subject to" and not able to pass inspection?

David,

You can shop around to other banks and get a good rate on a 30 year fixed.  I am available if you need to talk and I also have spanish speaking members on my team if that helps!

If possible go with a cash out refinance and do not worry about rates you can do a buydown or a rate reduction loan in 12 months or more. HELOCS right now have similiar rates due to inflation so under these circumstances cash is king especially for liquid reserves. Cannot use a HELOC for PITI reserves or as an Asset.

Juan,

Yes when applying for a loan or line of credit banks use your credit score.  Most banks require a Tri-merge report all three bureaus Equifax, Experian & Transunion in order to establish a Mid score or middle of the 3 scores.  Some banks use just one particular score and sometimes refer to it as a "Soft pull".

But regardless of the above it will show up on your credit report as a liability and effect your total DTI debt to income ratio going forward.

There are also situations to consider that some banks will look at what the "Max payment would be if the line of credit would be fullly drawn" in order to gauge LTV on collateral and future debt to income ratios.

Blake,

You are talking about 100% financing which only applies to Primary homes. Even though the house is worth $100K and you are getting it for $80K you need a loan for the "purchase price" banks only use that LTV scenario in a "refinance" situation because you own the house and they would be offering a loan based on the total equity. When you buy banks want you to put skin in the game and take on some of the risk with a down payment.

Brady,

Have you though about just going the traditonal route and using a first time home buyer program100% financing with a DPA or FHA with 3.5% down to acquire the first proprerty. You can transition the the property into a rental in 6 months once you have "six (6) months title seasoning" where you could reifnance the FHA into conventional while taking out cash.

Nothing wrong with creative financing but your looking at a lot of work and a lot of digging to find the perfect person where those scenarios will work for the seller.  

That rate is very high for a second home, have you looked at a COR instead?

 Try looking in Murfreesboro